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FIVE at FIVE AU: Australian shares down this afternoon; US housing data weak

Published 01/07/2024, 04:03 pm
Updated 01/07/2024, 04:30 pm
© Reuters FIVE at FIVE AU: Australian shares down this afternoon; US housing data weak
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Australian shares were down today, pulled in that direction by a weaker tech sector.

The bourse dropped 18.90 points or 0.24% to 7,748.60 and crossed below its 20-day moving average.

Flunking out at 3:30pm were Strike Energy Ltd and Pro Medicus Ltd, down 16.96% and 5.59% respectively.

The index has lost 0.61% for the last five days and sits 2.05% below its 52-week high.

Across the sectors, it was a mixed bag this afternoon. Energy, Materials and Real Estate beat the general downward trend, up 0.35%, 1.02% and 0.88% respectively, while at the other end, Information Technology was a drag on the markets, falling 2.21%.

Taking a Tryp to safety

Tryptamine Therapeutics Ltd has successfully completed the first dosing of TRP-8803, an intravenous-infused psilocin, in a groundbreaking psychedelic treatment study. Conducted with CMAX Clinical Research in Adelaide, this trial aims to optimise dosing and infusion rates in up to 12 participants to achieve precise blood levels of psilocin.

The study's results will inform Tryp's Phase 2a patient study pipeline, ensuring the safety and efficacy of TRP-8803 in humans.

The successful first dosing has increased confidence in TRP-8803's potential as a psychedelic therapy. The trial is set to conclude later in the year, with results to be reported thereafter. Positive findings could advance Tryptamine's clinical trial pipeline for various conditions.

"Tryp CEO Jason Carroll said: “We are very pleased to have completed the world’s first TRP-8803 treatment in a patient in Adelaide. Pleasingly, the maiden participant was delivered the infusion safely and was discharged on treatment conclusion, which provides management with confidence of TRP-8803 and the completion of this healthy human volunteer study.

“The trial, which being undertaken alongside CMAX is an incredibly important initiative for Tryp, as it will provide us with data highlighting TRP-8803’s safety in humans at escalating doses.

"This will form the basis of the company’s clinical trial pipeline into other indications and ultimately our regulatory engagement."

Sales of new homes down in US

New US housing and construction data might point to softening inflation in that country. Sales of newly built homes fell 11.3% in May to 619,000, the lowest since November, according to US Government data.

This was the steepest decline since September 2022 and reflects the challenges in a market where new homes make up 10% of total sales.

Economists had projected 647,500 sales for May, but elevated mortgage rates, which peaked early in the month, contributed to the decline. Although rates have since trended down, they remain high, affecting buyer decisions.

Federal Reserve officials expect only a slight easing of borrowing costs this year, with just one rate cut anticipated.

Significant relief in mortgage rates depends on inflation moving closer to the Fed's 2% target, and there is a possibility that rates may not be cut at all this year.

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