The ASX opened lower today after US service sector data dampened the outlook for continued rate cuts.
The S&P/ASX 200 edged back 19 points, or 0.23%, to 8,266.10 points as of 10.31am AEDT. Over the last five days, the index has gained 1.31% and is currently 2.92% off its 52-week high.
Materials was the best performing sector in early trade, shifting up 0.07% and rebounding from its recent decline while most other sectors were in the red. The sector is down 0.99% over the past five days. Energy slipped 0.04% and industrials was down 0.03%.
The top five were dominated by the gold miners. Regis Resources (ASX:RRL) advanced 5.02% to $2.72, Bellevue Gold (ASX:BGL) climbed 3.54% to $1.03, Capricorn Metals (ASX:CMM) rose 3.23% to $6.72 and West African Resources (ASX:WAF) lifted 3.02% to $1.54.
Regis reported record December 2024 quarter cash and bullion of $149 million following group gold production of 101,300 ounces, taking its total cash and bullion balance to $529 million.
West African, meanwhile, reported that it has hit the upper end of its 2024 guidance, producing 206,622 ounces for the year.
Champion Iron (ASX:CIA) reversed its downward trend, climbing 3.51% to $5.61.
Uranium miners Deep Yellow (ASX:DYL) and Boss Energy (ASX:BOE) found themselves on the opposite end of the scale, dropping 4.83% to $1.28 and 2.87% to $2.71, respectively.
The Institute for Supply Management (ISM) said overnight that economic activity in the services sector expanded for the sixth consecutive month in December 2024.
The services purchasing managers index rose to 54.1%, up from 52.1% in November, which ISM says indicates expansion for the 52nd time in 55 months since recovery from the coronavirus pandemic-induced recession began in June 2020.
The market read this as a signal that inflation may accelerate ahead of President-elect Donald Trump’s roll out of higher tariffs and a reduced likelihood of lower interest rates until June.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
