Market Wrap / oil interests

Investors eyed the latest developments in the Middle East with caution, while the spike in oil prices lifted the energy sector, which recorded one of its best sessions in four and a half years.The S&P/ASX 200 finished Monday's session higher by just a point to 8548.40 points, while the energy sector gained 5.2%.

News Iran is considering closing the Strait of Hormuz, where around a fifth of oil barrels transit, kept oil prices high. Stock specifically, Woodside jumped 3%, while Santos soared 10.9% as Abu Dhabi's state owned oil corporation (ADNOC) made a takeover bid at $8.89 dollars a share, valuing Santos at $30 billion.

The banks and REITs offered a more contrasted picture however, as inflationary concerns about higher petrol prices raised some doubts about the timing of the next RBA cut.

Meanwhile, and in spite of accrued uncertainty, the local gold players lost ground, hit by profit-taking. 

Mining giant BHP was flat as China revealed contrasting data. New home prices fell the most in seven months, suggesting the effects of last September’s stimulus are wearing off. However, China’s domestic consumption jumped the most since 2023, despite the prolonged trade war with the US. 

Elsewhere, uranium producer Deep Yellow gained 21.2% supported by an upbeat forecast from Jefferies. The broker noted energy security and AI-power demands. 

Tomorrow, the Bank of Japan will hand down its rate decision, before the Fed and Bank of England later this week.