ASX Large Caps: Oil shares rise on Middle East fallout, gold shares rise on safe haven bids | spcilvly

  • The ASX 200 closed higher due to the consequences of the Middle East
  • Oil and gold stocks soared on concerns the war could spread regionally
  • US dollar rose while bond prices fell

The ASX rose +0.2% on Monday, mainly driven by a 3% rise in the energy sector.

Oil and coal stocks rose sharply following the outbreak of Israel’s war with Hamas over the weekend. At the time of writing, benchmark Brent is trading at $87.57 a barrel, up almost 4% from Friday’s close.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said CNBC that OPEC+ will “remain cautious” of any measures to expand or cut its oil production while the fighting continues.

Gold stocks also rose as the clash raised the potential for a broader regional conflict, boosting demand for safe-haven bullion. This came as President Biden promised “robust” US support for Israel.

The US dollar has also risen amid the latest turmoil, with the AUD now falling to 63.54 cents.

But with US markets closed tonight for Columbus Day, Wall Street will have to wait until Tuesday to gauge the reaction of US traders.

Elsewhere, Chinese stocks also fell as traders returned from a week-long national holiday. Real estate issues remain a major concern, but Chinese retail sales data for the Christmas period has been disappointing.

BIG CAPITAL WINNERS

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gold miners De Gray (ASX: DEG), Evolution Mining (ASX: EVN) and Newcrest (ASX:NCM)) were the biggest winners today as war rages.

energy stocks Contact Energy (ASX:CEN) and Karoon Energy (ASX:KAR) It also increased due to rising oil prices.

BIG CAPITAL LOSERS

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Blue Minerals (ASX:AZS) announced that inaugural test work at its giant Andover hard rock lithium project is off to a great start, returning spodumene Li2O concentrate grades at 5.59% with a recovery of 82.37%. The mineralization is well suited to industry standard flotation processing and further test work is expected to improve recoveries.

Now read: Test work returns excellent 5.59 percent lithium concentrate and 82.37 percent recovery at Azure’s Andover

At Stockhead we tell it like it is. While Azure Minerals is a Stockhead advertiser, it did not sponsor this article.

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