Australia’s share market is breaking even to start the week, as oil prices fluctuate amid tense US-Iran negotiations in Switzerland.
The S&P/ASX200 rose 1.6 points by midday on Monday to be up 0.02 per cent, to 8,828.8, as the broader All Ordinaries fell by 0.8 points, down 0.01 per cent, to 9,046.5.
“Despite the US-Iran peace deal being signed on Thursday, geopolitical risk is likely to dominate the newsflow,” Capital.com senior market analyst Kyle Rodda said.
“Peace talks commenced between the US and Iran in Switzerland amidst threats to close the Strait of Hormuz after tensions flared between Israel and Hezbollah.”
Energy stocks fell 0.8 per cent as oil prices eased from an overnight spike, weighing on Woodside and refinery operators Viva and Ampol.
A recent sell-off in mining stocks continued, albeit at a slower rate, the sector down 0.5 per cent on Monday as gold miners rebounded.
The precious metal has firmed to near $US4,190 ($A5,978) an ounce, after selling off last week as markets repriced for a hawkish US interest rate outlook.
BHP and Rio Tinto extended their declines after hitting record highs during the previous two weeks, despite iron ore and copper futures edging higher.
Major insurers helped support a 0.6 per cent lift in financials stocks, helped by decent upticks in CommBank and ANZ shares, while NAB and Westpac edged higher.
Consumer discretionary stocks also performed well, up 0.6 per cent and led by a more than two per cent upswing in Aristocrat, as the segment continued its recent recovery to trade at 18-week highs.
ASX-listed IT stocks underperformed the broader market, down 1.7 per cent after a sharp drop in sector giant, WiseTech.
The logistics software provider tumbled more than 12 per cent after the Australian Financial Review and other Nine publications claimed the Australian Federal Police was investigating company co-founder Richard White.
The Nine reports centre on the alleged exploitation of a woman’s immigration status and financial insecurity for sex and the provision of false information on a visa application.
WiseTech declined to comment and the AFP has yet to respond to AAP’s request for information about the alleged investigation, which has not been officially confirmed.
Inghams was also heavy, falling five per cent after a case of the deadly H5N1 bird flu variant was detected for the first time on the Australian continent in Western Australia.
As a precaution, Inghams has locked down its WA farms and processing operations.
The a2 Milk Company shares gained 3.7 per cent after flagging a $300 million special dividend after winning regulatory approval to transfer two acquired infant formula products to its own branding.
Debt buyer and collector Credit Corp has ditched plans to buy Humm.
The Australian dollar was buying 70.08 US cents, down slightly from 70.12 US cents on Friday at 5pm.
Looking ahead, it’s a big week for local macroeconomic data, with May consumer price index figures due on Wednesday, and unemployment data to follow on Thursday.