Australian Shares Fall; Iluka Resources to Supply Magnet Rare Earth Oxides to Automotive Firm
Australian shares closed lower on Tuesday as Asian markets followed Monday's Wall Street sell-off.The S&P/ASX 200 Index fell 0.33%, or 29.10 points, to close at 8,787.On Monday, the Nasdaq Composite fell 1.3%, the S&P 500 lost 0.4%, while the Dow Jones managed to add 0.3%.The US waived sanctions on Iran for 60 days from Monday following the first talks under a nascent peace deal, Reuters reported Monday."These are far from dull markets. The former generals of the market appear to have lost momentum, and investors are rotating into other areas of the market that are more defensive, less AI-focused and offer more predictable cash flows," said Chris Weston, head of research at Pepperstone Group, as quoted by Reuters.In domestic news, Australian consumer confidence rose 2.1 points in the week of June 15 to 21 to 72.8 points, its highest level since early March, according to a note from ANZ.Also, rising interest rates and recent tax changes threaten a more pronounced correction for Australia's housing markets, where conditions have already been slowing amid a challenging and uncertain outlook, Westpac said in its Housing Pulse report.Further, more than four in 10 Australian small and medium businesses are using artificial intelligence tools, and a further 14% are planning to adopt them, with property services, finance and insurance, and business services sectors leading adoption, according to a report by National Australia Bank.Meanwhile, Australia's private sector activity edged closer to stabilization in June, but persistent declines in new orders and the weakest business confidence since the pandemic reflected lingering demand-side weakness despite easing inflationary pressures, according to a survey by S&P Global.In company news, Iluka Resources (ASX:ILU) struck a binding agreement to supply magnet rare earth oxides, including neodymium, praseodymium, dysprosium, and terbium, to an unnamed automotive company.WiseTech Global (ASX:WTC) denied awareness of any investigation linked to Executive Chair Richard White following media reports concerning a visa application, saying the matter relates to him personally and not the company.Lastly, Viva Energy Group (ASX:VEA) completed works to restart the residue catalytic cracking unit at the Geelong Refinery in Victoria.
