BHP Stock – Australian share market dragged down by miners despite Wall Street records
The local share market has fallen in early trade, despite a strong session on Wall Street on Friday.
By 10:20am (AEST), the ASX 200 was down by 0.4 per cent to 6,970 points, with most sectors in the red.
Mining stocks dragged, including BHP (-0.9pc), Fortescue (-0.9pc) and South32 (-1.4pc), and gold miners.
Financials was the only sector slightly higher in early trade, with shares in ANZ (+0.3pc), NAB (+0.6pc), Westpac (+0.2pc) and Bank of Queensland (+0.7pc) rising.
The Australian dollar was marginally weaker against the US dollar, buying around 76.2 US cents.
Around the region, stocks in Japan and South Korea edged higher.
Fed chair forecasts ‘very strong’ US jobs growth
In US trade on Friday, the S&P 500 (+0.8pc) and the Dow Jones (+0.9pc) rose to close at new highs.
The positive end to the week followed data showing prices received by producers selling goods and services had risen.
In March, the US producer price index rose at twice the speed of February’s growth.
Commentary from Federal Reserve chair Jerome Powell suggested the central bank was more concerned about the recent rise in COVID-19 infections than inflationary pressures.
“Powell is not overly concerned about long-term inflation… the Fed has stressed from the very beginning these increases will be transitory,” LPL Financial senior market strategist Ryan Detrick said.
However, in an interview over the weekend, Mr Powell said the economy was about to start growing much more quickly, despite the remaining risks from the pandemic.
“The principal one just is that we will reopen too quickly, people will too quickly return to their old practices, and we’ll see another spike in cases,” he said.
Mr Powell tipped “very strong” jobs growth in the months ahead, but reiterated that the central bank is unlikely to change its current policy settings anytime soon.
This week, US companies will begin reporting their first-quarter earnings, with results from Goldman Sachs, JP Morgan and Wells Fargo mid-week.
Analysts expect profits for S&P 500 firms to show a 25 per cent jump from a year earlier, according to Refinitiv IBES data.