Australia: Shares flat as mining, energy losses offset tech gains

AUSTRALIAN shares were little changed on Wednesday, as losses in energy and resources stocks over growing fears of a global recession and lockdowns in China offset gains in tech and financials.

The S&P/ASX 200 index added 1.2 points to 6,630.50 by 0042 GMT. The benchmark gained 0.3 per cent on Tuesday.

Recession fears were intensified by an energy crisis in Europe in the Russia-Ukraine war and a sharp dent in business growth in the euro zone, which fanned concerns about an economic slowdown.

MSCI’s gauge of stocks across the globe shed 0.49 per cent overnight, Japan’s Nikkei was down 0.93 per cent as at 0027 GMT, while S&P 500 E-minis futures were up 0.03 per cent.

In Australia, heavyweight miners slumped as much as 4 per cent to a more than seven-month low, with sector heavyweights Rio Tinto, BHP Group and Fortescue Metals Group losing between 3 per cent and 5 per cent.

Iron ore prices gained on Tuesday after four consecutive sessions of losses on expectations of lower US tariffs on Chinese goods, although recession fears capped gains.

Additionally, energy stocks plunged nearly 5 per cent, seeing its worst day since June 20, as Brent crude prices slumped about 9 per cent overnight on worries of an economic slowdown.

Index majors Woodside Energy and Santos lost 5.2 per cent and 3.9 per cent, respectively.

Oil prices recovered, with Brent crude futures jumping more than US$3 to an intra-day high of US$105.85 per barrel.

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The gold index also fell 4.5 per cent, as bullion’s appeal reduced on a stronger US dollar and high interest rates globally.

Heavyweights Newcrest Mining NCM.AX and Northern Star Resources dropped 5.2 per cent and 4.6 per cent.

However, financials were up 1.4 per cent, with the “Big Four” banks moving in the range between 0.5 per cent and 1.5 per cent.

Moreover, the domestic tech index firmed about 4.3 per cent, tracking Wall Street peers, rising for a fourth straight session. New Zealand’s benchmark S&P/NZX 50 index was up 0.6 per cent at 11,037.21. REUTERS