The Australian sharemarket has ended the week in the red as investors pressed pause on gold and the iron ore miners lost their mojo on the back of signs of a stalemate between BHP and China in their pricing dispute.
The S&P/ASX 200 closed 11.5 points, or 0.13 per cent, weaker at 8958.3, in a choppy session after US stocks and the price of gold pulled back from record highs. The Aussie dollar edged up 0.2 per cent to US65.69¢.
Wall Street took a break from its relentless rally over the past weeks, setting the scene for a softer session on the ASX.Credit: Bloomberg
While the iron ore miners scored gains on Thursday, the mining sector was the biggest weight on the local bourse on Friday.
Iron ore heavyweight BHP fell 2.1 per cent amid speculation that its stand-off with China’s state-run iron ore buyer risks dragging on for months, and even into early 2026, as both sides remain locked in stalemate. Fortescue Metals dropped 1.5 per cent and Rio Tinto shed 1.7 per cent.
Gold miners lost some of their recent lustre, slumping after the price of gold fell 1.5 per cent to trade back below $US4000 ($6080) an ounce, following its all-time highs earlier this week. Northern Star Resources dropped 2.1 per cent, Evolution Mining lost 3.9 per cent and Newmont fell 2.9 per cent.
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Rare earths miners were spared in the mining sell-down after China announced curbs on its exports of the minerals, which are critical for the making of everything from consumer electronics to jet engines. American rare-earths miners had rallied overnight as the move fuelled bets that non-Chinese suppliers will benefit. Lynas rose 3.8 per cent and its smaller rival Iluka gained 3.2 per cent.
Energy stocks traded lower as oil prices fell amid the cooling tensions in the Middle East. Israel and Hamas reached a deal for a truce and the release of hostages held by the militant group, a major step towards ending a two-year war that’s dogged the region, which is the source of one-third of the world’s crude. Oil and gas giants Woodside and Santos dropped 1.2 per cent and 0.5 per cent, respectively. Beach Energy slumped 2.6 per cent.
The broader market, however, was held up by the crucial banking sector, which accounts for about one-third of the local market. All big four banks closed in the green. Commonwealth Bank rose 0.6 per cent, National Australia Bank added 0.6 per cent, Westpac rose 0.3 per cent and ANZ Bank gained 0.17 per cent.