BHP Weighs Down Share Market as US Interest Rate Expectations Soften
Australia's share market retreated from an early lead on Friday as BHP weighed down the mining sector. The benchmark S&P/ASX200 index fell 11.8 points by midday, dropping to 0.13% at 9,008.3, while the broader All Ordinaries lost 2.3 points, or 0.03%, to 9,196.
The top-200's early lead was short-lived after US Federal Reserve Governor Christopher Waller signaled a data-dependent approach to interest rates. This move eased market expectations of further tightening, causing bond yields to fall on both sides of the Pacific.
Brent crude prices rose to six-week highs near $96 a barrel following US Vice President JD Vance's refusal to set a deadline for the Persian Gulf conflict. Local energy stocks fell 0.4% as refinery operators Ampol and Viva Energy went ex-dividend, while Woodside declined for a second session after locking in shareholder payouts.
BHP's retreat from last week's record high of $68.77 weighed on the raw materials sector. Gold stocks provided some support as the precious metal firmed to $4,476 an ounce, with Ora Banda leading the way with a 6% rally.