Australian indices move higher in tight embrace

The two main Australian indices tracked each other very closely on Wednesday. The benchmark S&P/ASX 200 Index (ASX: XJO) rose 60 points, or 0.7 per cent, to 8737.20, after touching a fresh intra-day high of 8,746.7; while the broader All Ordinaries Index (ASX: XAO) was elevated 59.9 points by the close, also 0.7 per cent, to 9,001.40. Ten of the 11 sectors finished in the green, with utilities the only laggard.

Materials led the market, up 1.2 per cent, with the major miners all higher on the back of Singapore iron ore futures rising 2.2 per cent to $US105.65 per tonne – the highest level for the commodity in five months, boosted by China’s reforms for the steel industry and plans for a massive dam project in Tibet. BHP Group Limited (ASX: BHP) advanced 34 cents, or 0.8 per cent, to $41.85; Rio Tinto Group (ASX: RIO) gained $1.15, or 1 per cent, to $119.47; and Fortescue Ltd (ASX: FMG) firmed 40 cents, or 2.2 per cent, to $18.21. In oil and gas, Woodside Energy Group Ltd (ASX: WDS) rose 36 cents, or 1.5 per cent, to $25.21, after beating expectations with its second-quarter revenue, however, the energy heavyweight downplayed its 2025 outlook.

Paladin Energy Limited (ASX: PDN), a Namibia-based uranium producer, slumped 92 cents, or 11.3 per cent, to $7.25, despite its Langer Heinrich mine enjoying a 33 per cent jump in quarterly production, hitting record crusher throughput. But full-year production guidance fell short of expectations, and the company flagged higher costs than what analysts were expecting. In coal, Whitehaven Coal Limited (ASX: WHC) rose 44 cents, or 6.5 per cent, to $7.18; Yancoal Australia Ltd (ASX: YAL) lifted 18 cents, or 2.8 per cent, to $6.58; and New Hope Corporation Limited (ASX: NHC) added 9 cents, or 2.1 per cent, to $4.38.

In gold, Ramelius Resources Limited (ASX: RMS) jumped 12 cents, or 4.5 per cent, to $2.78; Newmont Corporation (NYSE: NEM) was up $1.70, or 1.9 per cent, to $93.70; Genesis Minerals Limited (ASX: GMD) gained 5 cents, or 1.2 per cent, to $4.12; and Northern Star Resources Ltd (ASX: NST) finished 18 cents, or 1.1 per cent, to the good, at $16.67. Mineral sands miner Iluka Resources Limited (ASX: ILU) advanced 21 cents, or 4 per cent, to $5.39.

SEC blindsides Telix

On the industrial screens, cancer imaging company Telix Pharmaceuticals Limited (ASX: TLX) was pounded after announcing that it had been subpoenaed by the US Securities and Exchange Commission (SEC) over disclosures relating to the development of its prostate cancer therapeutic candidates. Telix lost $3.80, or 15.1 per cent, to $21.32, taking the stock back to where it was in November. Telix said it is fully cooperating with the US regulator and is in the process of responding; at this stage, the matter is a “fact-finding” request. Biotech heavyweight CSL Limited (ASX: CSL) gained $1.55, or 0.6 per cent, to $265.50.

Most of the major banks rose, with Australia and New Zealand Banking Group Limited (ASX: ANZ) up 75 cents, or 2.5 per cent, to $30.57; Westpac Banking Corporation (ASX: WBC) gained 46 cents, or 1.4 per cent, to $33.11; and Commonwealth Bank of Australia (ASX: CBA) turning early-day weakness into a rise of 88 cents, or 0.5 per cent, to $173.30. But National Australia Bank Limited (ASX: NAB) softened 2 cents, to $37.20.

Boldly going where no tech index has gone before

In the United States, the highlight of the Wednesday session was the tech-heavy Nasdaq Composite Index (NASDAQ: IXIC) closing above the 21,000 level for the first time. The tech gauge put on 127.33 points, or 0.6 per cent, and closed at 21,020.02. The benchmark S&P 500 Index (NYSE: SPX) added 49.29 points, or 0.8 per cent, to hit its 12th record close of the year, at 6,358.91. The 30-stock Dow Jones Industrial Average (NYSE: DJI) lifted 507.85 points, or 1.1 per cent, to 45,010.29, just four points away from a new record close.

The impetus for the indices came from positive developments on the trade front this week. The United States and Japan have reached a trade deal, with 15 per cent “reciprocal” tariffs on goods from the nation, below the US’ initial gambit of 25 per cent. Reports also came in that the United States and the European Union were making progress toward a similar deal.

After the close, megacap stocks Alphabet Inc. (NASDAQ: GOOGL) and Tesla Inc. (NASDAQ: TSLA) reported their second-quarter earnings. Alphabet beat both revenue and earnings expectations, and the stock rose 2 per cent in after-hours trading; Tesla disappointed investors with a fall in automobile revenue for the second consecutive quarter, and after-hours trading initially saw the stock slip 3 per cent.