Australian shares snap four-day decline as miners, banks rise

[SYDNEY] Australian shares snapped a four-day losing streak on Friday (Jul 10) after an upbeat session on Wall Street, even as a re-escalation in the Middle East conflict raised supply concerns.

The benchmark S&P/ASX 200 index ended 0.5 per cent higher at 8,806.00 points. The benchmark lost 0.4 per cent in the week.

Wall Street ended sharply higher overnight, helped by Micron Technology’s plans to invest more than US$250 billion in the US through 2035.

Meanwhile, Iran initiated attacks on US military infrastructure in Gulf states on Thursday, evoking fears of further supply disruption at the Strait of Hormuz.

“Today’s positive price action on the benchmark suggests investors are still leaning toward optimism... A better night on Wall Street helped sentiment,” said Tim Waterer, chief market analyst at KCM Trade.

Investors now turn to earnings reporting season, with mining giants BHP and Rio Tinto due to kick off reporting next week.

“Given their combined weight in the index, banks and the major miners will draw the bulk of investor attention regardless,” said William Taylor, COO and portfolio manager at ETF Shares.

BHP Group gained 2.5 per cent, clocking its best day in nearly a month. The mining index rose 2.5 per cent, snapping four straight sessions of losses.

Banks edged 0.6 per cent higher, their best week since the week ended May 22, with a higher-for-longer rate environment supporting margins. All the “Big Four” banks traded in the green.

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Australian shares extend losses on Middle East jitters, banks and miners top drag

Gold stocks followed suit, climbing 2.7 per cent, the index’s best day in a week. Gold miner Genesis Minerals added 3.9 per cent.

Capping gains, energy stocks dropped 0.2 per cent, but logged their best week in nearly four months.

Markets in New Zealand were closed on Friday for a public holiday. REUTERS