The Australian stock market dipped on Monday, reversing the previous day's gains, even as Wall Street offered a negative outlook on Friday. The S&P/ASX 200 Index declined by 143.20 points, or 1.68 percent, to 8,389.10, slipping below the 8,400.00 mark during the session. This shift followed a notable increase in Friday's close. The energy and technology sectors were among the biggest contributors to the downturn, with key stocks in these industries showing notable declines.
Mining and energy stocks were a major source of downward pressure. Fortescue experienced a sharp decline of almost 5 percent, while Rio Tinto and Mineral Resources each fell by more than 4 percent. In the oil sector, Woodside Energy and Santos both saw their shares fall by more than 1 percent. Origin Energy, however, bucked the trend with a drop of more than 2 percent. The sector's overall weakness reflected ongoing volatility in global energy markets.
Tech stocks also struggled, with several key names posting declines. Block, which operates the Afterpay platform, was in a trading halt. WiseTech Global, Zip, and Appen each lost more than 2 percent. Xero remained flat. The only positive tech performance came from Appen, which previously saw its shares climb over 3 percent amid stronger-than-expected results or investor sentiment.
Gold miners were largely on the decline, with Resolute Mining and Newmont each losing more than 1 percent. Genesis Minerals edged lower by 0.4 percent, and Northern Star Resources fell nearly 1 percent. The only exception was Evolution Mining, which saw its shares rise by almost 1 percent. However, Resolute Mining experienced a drop of almost 8 percent after chief executive Terry Holohan stepped down with immediate effect.
Among Australia's big four banks, Commonwealth Bank lost nearly 1 percent, dragging down the sector. Westpac and ANZ Banking both edged down by 1 to 2 percent. National Australia Bank, however, bucked the trend with a slight rise of 0.1 percent.
FleetPartners saw a massive 16 percent jump in its shares after SG Fleet announced a $770 million takeover bid. Meanwhile, IperionX's shares fell nearly 6 percent after it announced that its parent company would relocate its headquarters to Texas and list directly on the Nasdaq. This development raised concerns among investors about the company's future performance and strategy.
Economic indicators showed continued growth in the manufacturing sector. The S&P Global manufacturing PMI rose to 50.2 in January, up from 47.8 the previous month. This figure indicates an ongoing expansion, as it remains above the 50-level threshold that separates growth from contraction. The Australian dollar was trading at $0.609 on Monday, reflecting mixed global market conditions. Retail sales in Australia were down a seasonally adjusted 0.1 percent on month in December, coming in at A$36.991 billion, and the total value of building permits issued in Australia was up a seasonally adjusted 0.7 percent on month in December.
In the U.S., Wall Street markets ended the week on a negative note, following broadly negative cues from Wall Street on Friday. The Nasdaq gained 251.68 points, or 1 percent, to 25,373.85. The S&P 500 rose 52.09 points, or 0.7 percent, to 7,489.72, and the Dow climbed 276.97 points, or 0.5 percent, to 52,485.03. Despite some afternoon volatility, the major U.S. indices closed firmly higher.
European markets showed mixed results. The German DAX Index rose slightly by 0.1 percent, the French CAC 40 Index gained 0.3 percent, while the U.K.'s FTSE 100 Index edged lower by 0.3 percent. This mixed performance reflected uncertainty in global markets.
Crude oil prices experienced a sharp increase on Friday after Iran's military conducted strikes on U.S. This development added to ongoing geopolitical tensions in the energy market.