The ASX is looking to finish the week slightly lower as the benchmark index was dragged down by the banks and miners on Friday.
The sectors’ performance has been mixed with safe haven stocks among the best performers. Healthcare, Telcos, Consumer Staples are all outperforming, while Materials, Financials and Industrials are lower in afternoon trade.
Iron ore miners Fortescue (ASX:FMG), BHP (ASX:BHP), and Rio Tinto (ASX:RIO) helped drag the index lower along with three out of the four big four banks. The energy sector is trading higher, led by the coal sector and Yancoal in particular.
Overnight, the Australian dollar hit its highest level since January 2 on the increasing potential that the Reserve Bank might lift interest rates in 2024, combined with a rate cut by the US central bank following a string of softer-than-expected economic data.
Gas shortfall looms
The ACCC has warned that the eastern states gas shortage is worse than what it predicted six months ago, with a gas shortfall by 2027 — a year earlier than previously predicted.
Australia is likely to have "sufficient supply" of gas throughout the transition towards renewable energy until 2028, and while there is enough gas supply in the short-term, shortages are possible from 2027 unless more supply comes online..
That warning from the ACCC in its December 2023 interim report, follows a forecast from the Australian Energy Market Operator (AEMO) in March that southern states would face gas shortages from 2028.
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