Miners Drag Down Australian Share Market Which Resulted in ASX to Stuck in Stalemate

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The Australian share market ended marginally lower on Monday after a week of trading that saw it virtually unchanged.

The benchmark S&P/ASX200 index was down 0.2 per cent at the close of trade, with losses led by the mining sector.

Nanosonics was down 12.2 per cent on Monday after reportedly facing downgrades by significant firms.

Other stocks that faced heavy losses included Beach Energy (-10.4 per cent), Regis Resources (-9.8 per cent), Evolution Mining (-9.3 per cent) and Sayona lost 4.5 per cent.

US stocks ended marginally higher on Friday, with the Dow Jones Industrial Average up 0.6 per cent, the S&P 500 up 0.5 per cent and the Nasdaq Composite Index flat.

The gains were underpinned by a rebound in technology stocks, which had come under pressure in the past few sessions.

The S&P technology sector was up 1.2 per cent on Friday, making it the best-performing sector in the benchmark index.

The market remains stalemate as major miners and the banking sector must provide meaningful momentum. The financials sector was down 0.2 per cent, with banks NAB and ANZ losing 0.8 per cent and Westpac dropping 1.1 per cent.

According to Westpac, “Its weekly range was 0.6634 to 0.6797, its narrowest weekly range since late August.”

This suggests that the Australian dollar was gaining against the US dollar as US inflation data came out. This could be because traders expected the data to be weaker than it was, so the Australian dollar strengthened as investors moved their money into riskier assets.

While weaker commodity prices are hitting the resources sector, particularly iron ore, investors are also becoming increasingly cautious about elevated valuations in the current bull market. 

Overall, this uninspiring trading activity highlights how difficult it has become for investors to make money on the Australian stock market.

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