ASX 200 Extends Losing Streak Amid Commodity Volatility and Geopolitical Tension

The S&P/ASX 200 declined 0.57%, dropping 49.90 points to close at 8,716.50. This downward trend reflects a broader sentiment of caution across the Australian equity landscape, with the All Ordinaries Index also slipping 0.52% to 8,943.70. The decline follows a mixed performance from U.S. markets, where the Nasdaq and S&P 500 reached new record highs while the Dow Jones Industrial Average edged lower. In Australia, the sell-off was widespread, particularly impacting the heavy-weight mining and energy sectors. Major miners saw divergent moves; Rio Tinto and BHP Group both fell nearly 1%, while Fortescue and Mineral Resources managed gains. The energy sector faced pressure, with Beach Energy sliding nearly 3% and Origin Energy dropping over 2%. Meanwhile, gold miners suffered significant losses, led by Resolute Mining, which tumbled more than 5%. A standout move occurred in the lithium space, where European Lithium shares plummeted nearly 60%. This followed the announcement of a US$835 million (A$1.2 billion) merger with Nasdaq-listed Critical Metals Corp, valuing the miner at 58 cents per share, representing a 137 percent premium to its previous close. Externally, crude oil prices surged as proposed U.S.-Iran negotiations were called off, pushing West Texas Intermediate (WTI) up 2.46% to $96.72 per barrel. In the currency markets, the Australian dollar was trading at $0.719.