🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

ASX200 dips amid commodity sector downturn, eyes on OPEC+ meeting

EditorRachael Rajan
Published 27-11-2023, 07:32 pm
© Reuters.
AXJO
-
BHP
-
FMG
-
TIOc1
-

Global markets are navigating through a complex terrain marked by fluctuating commodity prices and geopolitical tensions. The ASX200 index closed Monday with a 0.65% decline, primarily influenced by a slump in the shares of mining heavyweights BHP and Fortescue Metals, each tumbling over 1% due to a downturn in Singapore's iron ore futures. This dip in commodities was offset by resilience in the technology sector, which found some footing after a mixed close on Wall Street last Friday.

Investors are keeping a keen eye on the evolving landscape of electric vehicle (EV) minerals, as transport electrification trends prompt Western countries to secure supplies of critical minerals. Summit Minerals CEO Gower He, since his appointment in mid-October, has highlighted the strategic importance of minerals like lithium, used in LFP batteries, and other essential elements such as copper, rare earth elements (REEs), nickel, and cobalt, all crucial for EV battery production.

The Australian dollar saw an uplift, trading at approximately US65.77c, amid positive capital inflows into emerging markets and low volatility expectations, as noted by strategist Joseph Capurso. This comes as Beijing's aggressive domestic demand stimulus measures appear to be bearing fruit, with China's industrial profits surging by 2.7% in October.

Corporate finance news revealed Alderan Resources' successful $1.75 million placement, with other sectoral transactions including Terra Uranium's IPO at $7.5 million and Patagonia Lithium's IPO at $8.6 million. Market participants are now anticipating the upcoming OPEC+ online meeting this Thursday, where discussions on potential oil production adjustments could have significant implications for global energy markets.

In the geopolitical arena, peace efforts continue with the international community advocating for the extension of the ceasefire between Israel and Hamas. Meanwhile, consumer spending trends from Black Friday through Cyber Monday are being scrutinized for indications of consumer confidence, which could influence market sentiments in the weeks to come.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.