• ASX pared losses after a surge in oil-related stocks
  • Energy stocks rose after US and UK conducted air strikes in Yemen
  • Gold stocks also edged higher as investors rotated to safe haven assets

 

The ASX pared early losses to close the day just -0.25% lower on Friday. For the week, the benchmark ASX200 index was flat.

The market was earlier reeling from the higher than expected US inflation data overnight, which showed that consumer prices in the US picked up again in December to 3.4% (from 3.1% in November).

On the ASX today, Utilities and and Consumer Staples sectors were the worst laggards, while oil and gold stocks overperformed.

Oil-related stocks rose after crude prices jumped by 2% overnight, spurred on by news that Iran had seized a tanker with Iraqi crude destined for Turkey.

The oil market climbed further today after reports the US and its allies have launched airstrikes on Houthi targets in Yemen, spurring traders to pile in on energy related stocks.

Gold stocks also edged higher as investors rotated to safe haven assets.

The Aussie dollar meanwhile has also surged rapidly on the news, up by 0.35% to US6712c.

Across the region, Asian stock markets were mixed after China’s consumer prices fell for a third straight month in December, pointing to a weak domestic demand. China reported an inflation rate of -0.3% in December, compared with -0.5% in November.

 

BIG CAP WINNERS

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Oil stocks Beach Energy (ASX:BPT), Santos (ASX:STO) and Woodside Energy (ASX:WDS) all gained after US air strikes in Yemen,

Gold stocks Northern Star (ASX:NST), Silver Lake (ASX:SLR) and Sandfire Resources (ASX:SFR) also lifted as investors sought the safe haven of gold.

 

BIG CAP LOSERS

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