Big four banks send ASX lower as BlueScope shares surge

The Australian sharemarket fell on Tuesday, weighed down by big banks and consumer staples which wiped out gains from mining and materials giants, including a rally from BlueScope Steel after the steelmaker confirmed it had received a $13 billion takeover offer.

The S&P/ASX 200 closed down 45.8 points, or 0.5 per cent, at 8682, ignoring a 0.4 per cent jump in ASX futures this morning which had suggested gains for the local bourse. Nine of the market’s 11 industry sectors ended the day in the red.

The decline comes after a stagnant session on Monday, where the S&P/ASX 200 ended flat. The Australian dollar traded at US67.3¢.

BlueScope was one of the index’s best performers, soaring 20.6 per cent to $29.48, approaching the $30 price offered by billionaire Kerry Stokes’ industrial and media group SGH Ltd and US steelmaker Steel Dynamics in their joint takeover bid for the company.

The steelmaker’s board said it’s assessing the “highly conditional” proposal, which would require board and shareholder approval. SGH shares jumped 4.5 per cent.

BHP – the nation’s biggest miner – gained 1.4 per cent and its rival, Rio Tinto, rose 1.8 per cent after copper resumed its scorching rally to surpass $US13,350 a tonne for the first time, as a renewed rush to ship metal to the US fired up bullish traders and investors.

Benchmark prices on the London Metal Exchange surged as much as 4.7 per cent overnight, the latest in a series of leaps higher that have lifted copper about 20 per cent since mid-November.

BHP spin-off South 32, which owns Australia’s biggest silver mine, was up 3 per cent as gold and silver prices also jumped overnight, with investors weighing heightened geopolitical risks following the US capture of Venezuelan leader Nicolás Maduro.

Spot gold rose as much as 2.9 per cent, climbing above $US4455 an ounce, while silver gained 6 per cent. Local gold miners increased only marginally on the news, with Northern Star shares up just 1.1 per cent, Evolution Mining gaining 0.7 per cent and Newmont up 0.1 per cent.

Energy stocks were mixed, despite a rally by US oil giants Chevron and ExxonMobil over President Donald Trump’s plan for US oil companies to help rebuild Venezuela’s oil industry. Australia’s biggest oil major, Woodside, was up 0.8 per cent, while Santos added 0.5 per cent.

Financial stocks were the biggest weight on the local market as investors moved funds away from them into the mining sector amid concerns about weak profit growth for the banks. The big four banks all slumped, with the Commonwealth Bank – Australia’s biggest stock – down 3 per cent.

Westpac fell 2.2 per cent and National Australia Bank dropped 2.4 per cent, while ANZ Bank fell 2 per cent.

The big supermarket chains were also some of the day’s poorest performers. Woolworths and Coles were down 1.2 per cent and 2.8 per cent, respectively. Bottle shop owner Endeavour lost 0.8 per cent.

It was a different picture on Wall Street overnight, where a mix of energy companies and banks led the market higher. The S&P 500 rose 0.6 per cent and the Nasdaq composite added 0.7 per cent, with tech-focused megacaps such as Amazon and Tesla among the gainers. The Dow Jones Industrial Average rose 1.2 per cent.

Big US banks also made solid gains. JPMorgan Chase rose 2.6 per cent and Bank of America jumped 1.6 per cent.

Wall Street is also watching the technology sector as the industry kicks off its annual CES trade show in Las Vegas. Nvidia slipped 0.4 per cent, while Google added 0.4 per cent.

Investors are particularly focused on advancements in artificial intelligence. The sector led the broader market to a series of records in 2025 on expectations that AI will continue to drive advancements and profits for a wide range of technology companies. The latest updates on AI from influential technology companies could help shed more light on whether the big investments are worth the potential financial risks.

Companies like Nvidia have been heavily investing in the technology, while investors on Wall Street have made those companies among the most valuable in the world.

Treasury yields fell in the bond market. The yield on the 10-year US Treasuries fell to 4.16 per cent from 4.19 per cent late on Friday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, fell to 3.46 per cent from 3.48 per cent late on Friday.

Wall Street will get several economic updates this week that will also be watched by the Fed as it determines interest rate policy.

The central bank’s biggest focus will be on reports on the US job market later this week, which include updates for job openings and overall employment. The Fed has been weighing a slowing job market against risks for rising inflation as it decides whether to cut interest rates. It cut its benchmark rate three times late in 2025, but inflation has remained above its 2 per cent target and that has made the Fed more cautious.

Wall Street still expects the Fed to hold rates steady at its upcoming meeting later in January.

With AP, Bloomberg

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