The Australian share market rose on Monday, with the S&P/ASX 200 Index (ASX: XJO) adding 28.1 points to close at 8542.3, marking a 0.3 per cent increase. Investor sentiment was buoyed by positive developments in US trade negotiations, which also fuelled a rally in Wall Street markets. Locally, seven of the 11 sectors gained, with health and technology stocks leading the advance. CSL Limited (ASX: CSL) climbed 2.2 per cent, Pro Medicus Limited (ASX: PME) gained 1.6 per cent, and Sigma Healthcare Limited (ASX: SIG) rose 1.4 per cent. The technology sector also saw strong performances, including a 2.2 per cent increase in NextDC Limited (ASX: NXT). Financials were mixed, with Macquarie Group Limited (ASX: MQG) up 3.9 per cent, while Commonwealth Bank of Australia (ASX: CBA) slipped 0.3 per cent.
Company updates and market movers
In corporate developments, James Hardie Industries plc (ASX: JHX) surged 7.1 per cent following the approval of a US$14 billion acquisition by Azek Company Inc (NYSE: AZEK), prompting a shift in its primary listing to New York. Star Entertainment Group Limited (ASX: SGR)dropped 6.9 per cent after its Hong Kong investors raised doubts over the Queen’s Wharf project in Brisbane. Meanwhile, DroneShield Limited (ASX: DRO) fell 4.2 per cent despite recent contract wins. NIB Holdings Limited (ASX: NHF) jumped 9.4 per cent after UBS Group AG (SWX: UBSG) upgraded its rating to “buy”. Newly listed biotech Tetratherix Limited (ASX: TTX) closed its debut session 4.9 per cent higher at $3.02. Superloop Limited (ASX: SLC) rose 1 per cent after lifting its full-year earnings forecast above previous guidance.
Global markets buoyed by tech rally and trade progress
Global markets extended gains as investors welcomed easing trade tensions and robust tech performance. The S&P 500 Index (NYSE: SPX)and Nasdaq 100 Index (NASDAQ: NDX) both advanced 0.5 per cent, supported by record highs in Microsoft Corporation (NASDAQ: MSFT)and Meta Platforms Inc (NASDAQ: META). Canada’s move to withdraw its digital services tax contributed to improved sentiment around ongoing US trade negotiations. The focus remains on the July 9 deadline tied to US tariff policies, with hopes for more deals to avoid renewed trade friction. Meanwhile, falling Treasury yields and rising expectations of interest rate cuts from the Federal Reserve created a favourable backdrop for equities, with the S&P 500 notching its strongest quarterly performance since late 2023.
ASX reaches all-time high, CBA flat, energy, property gain on US-China deal, Woodside (ASX: WDS) gains
The local market reached a fresh intra-day high during the session on Wednesday, albeit only closing a meagre 0.1 per cent higher. The result was driven by a further easing in trade tensions between the US and China, with expectations a fresh agreement will be hammered out in the coming days and weeks. The energy and property sectors gains 0.8 and 0.9 per cent, with Woodside Energy (ASX:WDS) a standout, rallying 1.9 per cent, and BHP (ASX:BHP) also gaining more than 1.5 per cent as iron ore prices improved in Singapore. The Commonwealth Bank (ASX:CBA) underperformed, while both ANZ Bank (ASX:ANZ) and Westpac (ASX:WBC) posted small gains to buoy the market. Shares in property services provider Johns Lyng Group (ASX:JLG) posted a massive 17.7 per cent gain after the company confirmed a $3 offer from Pacific Equity Partners to take the company private.
Zip pops 16 per cent, Fletcher Building rallies on possible sales, Qantas (ASX: QAN) cuts Asia experiment
Buy now pay later group Zip (ASX:ZIP) topped the market, posting a 15 per cent gain on Wednesday, as the company upgraded earnings guidance for the financial year. It now expects earnings of $160 million, up from $153 million, driven primarily by solid transaction growth in the profitable US market. Shares in Fletcher Building (ASX:FBU) were also among the leaders, finishing 10 per cent higher, after the company revealed it had received inbound enquiries about potentially selling parts of its business, including construction, in an effort to release value from the business. Shares in Qantas (ASX:QAN) were more than 1 per cent lower after the company announced an immediate exit from Jetstar Asia, a 20 year experience, with 13 planes to be returned to service in Australia. Monash IVF (ASX:MVF) posted a dead cat bounce, with shares gaining 11 per cent as the embattled provider seeks to move forward after a number of massive issues.
S&P500 pulls back from highs, big tech falls on Apple weakness, Oracle jumps on upgrade
The Dow Jones finished flat, outperforming both the S&P500 and Nasdaq which fell 0.3 and 0.5 per cent respectively on weakness in Big Tech. Apple (NYSE:AAPL) fell by more than 2 per cent, while Tesla (NYSE:TSLA) reversed a 3 per cent gain to finish flat. The broader sentiment continues to improve, as Donald Trump all but confirmed a deal had been made between the US and China, which would include rare earth imports, while inflation data came in weaker than expected suggesting companies were not passing on tariff-related increased just yet. Bond yields fell, buoying bond prices on hopes that weaker inflation would support another round of rate cuts. Shares in Oracle (NYSE:ORCL) were stronger in after market trade as the company flagged surging growth in cloud sales, while Nintendo (TYO:7974) reported strong sales of it’s first new console in 15 years, the Switch 2, which sold 3.5 million in just four days.
Energy holds up ASX, Santos (ASX:STO) rallies, Newmont (ASX:NEW) leads gold miners higher on US-Iran worries
The local market posted a 0.3 per cent loss on Thursday, despite seven of the 11 sectors rallying, led by energy. The banking sector was the biggest detractor, with the likes of the Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC) falling slightly. The energy sector was boosted by Santos (ASX:STO) which rallied 0.2 per cent as the oil price moved back above US$70 per barrel. The gold price also rallied, supporting Northern Star (ASXNST) which gained 1.2 per cent, on media reports that President Trump was growing increasingly concerned that Iran would cease enriching uranium amid a threa of strikes between the nations. Monash IVF (ASX:MVF) remains in the news, with CEO Michael Knaap stepping down following a second embryo bungle by the company amid an environment where investors are demanding significantly greater transparency from boards. Long suffering shareholders in packaging group Pact (ASX:PGH) will have just four weeks to get rid of their shares before the company formally delists from the ASX.
Cettire (ASX:CTT) tanks on further downgrade, Cochlear maintains despite earnings reduction
Luxury online retailer Cettire (ASX:CTT) felt the brunt of the market and falling expectations with shares tanking by more than 30 per cent during the session. CEO Dean Mintz warned of weaker demand from the US, with the company reporting just 1.7 per cent growth in sales for the full year well below expectations. The company remains fixated on further expansion despite growing global challenges for luxury retailers. AGL Energy (ASX:AGL) confirmed that it is considering the sale of its 29 per cent investment in Tilt Renewables, amid a cleaning up of its balance sheet, shares were 0.9 per cent lower. In a sign of growing demand for higher quality earnings, shares in Cochlear (ASX:COH), which producing ear implants, rallied 0.7 per cent despite the company downgrading earnings guidance. The market was clearly expecting worse, with the company suggesting a new range of $390 to $400 million, down from $410 to $430 million as sales slowed.
Rally gathers steam, as inflation, bond yields surprise on the positive, Oracle surge continues
The Nasdaq and Dow Jones both posted 0.2 per cent gains overnight, as another round of positive inflation data supported hopes of a rate cut. Yields fell to 4.8 per cent after a massive US government bond auction, allaying fears of growing debt issues, and also boosting the S&P500. Inflation for companies, being the producer price index rose 0.1 per cent, weaker than expected and Cathie Wood of ARK Invest flagged an improving outlook for capital expenditure from the world’s largest companies, particularly around AI and computing power. US auto tariffs may be raised next, with both Ford (NYSE:F) and Stellantis faling briefly. Shares in Oracle (NYSE:ORCL) posted a massive double digit gain after the company flagged hopes that cloud infrastructure sales with jump by more than 70 per cent this financial year.
ASX retreats from record amid Israel-Iran strikes, Woodside, oil prices surge, Cettire struggles continue
The local market fell 0.2 per cent on Friday, with eight of the 11 sectors declining, the standout once again being energy and materials. Israel’s strike against Iran’s nuclear program sent the price of oil surging more than 10 per cent, which pushed the price of Woodside (ASX:WDS) up by more than 7 per cent, while Santos (ASX:STO) also added 3.7 per cent on concerns about the impact on supply. It was a similar story for gold miners, as investors flocked back towards the safe haven, with the price once again nearing a record high, as Newmont (ASX:NEM) adding close to 6 per cent for the session. Cettire (ASX:CTT) continues its struggled, tanking another 20 per cent on Friday, taking losses to 50 per cent of an already depressed share price, on the back of another profit downgrade. It was a similar story for Accent (ASX:AX1) which fell close to 25 per cent as the owner of the Hype and Platypus retail chains flagged weak sales since Christmas. Over the week, the ASX finished slightly higher as investors reposition for a busy second half of the year.
Iranian retaliation spooks markets, S&P, Nasdaq sink, as airlines hit by closures
An escalation between Iran and Israel over the weekend has sent concerns through global markets, with the Dow Jones falling 1.8 per cent, the Nasdaq 1.3 and the S&P500 1.1 per cent. The weakness was broad-based, with oil and gold mining companies benefitting but airline and travel companies tumbling on the back of closures of air space around the Middle East. The likes of American Airlines (NYSE:AA) and United Airlines (NYSE:UAl) both fell more than 4 per cent in after-market trading as hundreds missiles were fired by Iran into Israel. Shares in Adobe (NYSE:ADBE) fell by more than 5 per cent as the company gave a weaker than expected outlook for sales in 2025, as the company faces competition from the likes of Canva amid the surge of interest in AI tools and support. Despite this, sales remained relatively strong, with its core creative segment showing 11 per cent growth. Across the week, losses were broad with the Nasdaq and S&P500 falling by around 0.5 per cent.
The Australian share market remained resilient on Monday, navigating geopolitical uncertainty and a sell-off in the United States by edging slightly higher. The benchmark S&P/ASX 200 Index (ASX: XJO) ended the day up just 1 point at 8548.4 points, supported by a strong rally in energy shares following a sharp spike in oil prices and confirmation of a $30 billion takeover of Santos Limited (ASX: STO). Other oil stocks rose in tandem, with Woodside Energy Group Limited (ASX: WDS) up 3 per cent to $26, Beach Energy Limited (ASX: BPT) gaining 1.9 per cent to $1.33, and Karoon Energy Limited (ASX: KAR) climbing 2.3 per cent to $2.03. Meanwhile, uranium shares also spiked after news that the Sprott Physical Uranium Trust (TSX: U.UN) would raise $US100 million to purchase uranium. Shares in Deep Yellow Limited (ASX: DYL) surged 21.2 per cent to $1.60, Paladin Energy Limited (ASX: PDN) rose 15.6 per cent to $7.30, Boss Energy Limited (ASX: BOE) gained 17.7 per cent to $4.30, and Silex Systems Limited (ASX: SLX) soared 23.9 per cent to $4.
Financials and gold weigh on broader market
Despite energy’s strong performance, broader gains were capped by weakness in financials and gold stocks. Commonwealth Bank of Australia (ASX: CBA) slipped 0.03 per cent to $179.40, while National Australia Bank Limited (ASX: NAB), Westpac Banking Corporation (ASX: WBC) and Australia and New Zealand Banking Group Limited (ASX: ANZ) also declined. Among gold miners, Evolution Mining Limited (ASX: EVN) dropped 8 per cent to $8.45 after UBS Group AG (SWX: UBSG) downgraded it to a “sell”, and Northern Star Resources Limited (ASX: NST) fell 8.2 per cent to $20.68 following a downgrade to “neutral”. ASX Limited (ASX: ASX) declined 6.7 per cent to $67.90 after Australian Securities and Investments Commission (ASIC) launched an inquiry into its governance practices. In contrast, Bubs Australia Limited (ASX: BUB) rose 6.3 per cent to 17 cents on US regulatory progress, while Tourism Holdings Limited (ASX: THL) soared 56 per cent to $2.10 after receiving a $471 million buyout offer from BGH Capital and the Trouchet brothers.
Wall Street rises despite Middle East tensions
United States markets rebounded on Monday ahead of the United States Federal Reserve’s policy decision. The S&P 500 Index (NYSE: SPX) rose 0.9 per cent, the Dow Jones Industrial Average (NYSE: DJI) gained 0.7 per cent, and the Nasdaq Composite Index (NASDAQ: IXIC) jumped 1.4 per cent. Hopes of de-escalation between Iran and Israel supported gains, particularly in tech and consumer stocks, with Meta Platforms Inc. (NASDAQ: META), Palantir Technologies Inc. (NYSE: PLTR), and Tesla Inc. (NASDAQ: TSLA) all advancing. Energy shares lagged as oil prices fell. Meanwhile, United States Steel Corporation (NYSE: X)climbed 5.1 per cent after approval of its sale to Nippon Steel Corporation (TYO: 5401), and Roku Inc. (NASDAQ: ROKU) soared 10.4 per cent on a new advertising deal with Amazon Ads, part of Amazon.com Inc. (NASDAQ: AMZN).
ASX retreats as geopolitical tensions stir investor caution
The Australian share market closed marginally lower on Tuesday as geopolitical risks overshadowed an initial positive start. The S&P/ASX 200 Index (ASX: XJO) dipped by 7.1 points to finish at 8541.3, despite tracking earlier gains from Wall Street. The volatility was sparked by former US President Donald Trump’s unexpected social media call for the evacuation of Tehran, raising market jitters across Asia. Investor sentiment remained cautious as seven of the 11 sectors on the ASX ended in the red, with Commonwealth Bank of Australia (ASX: CBA) and BHP Group Limited (ASX: BHP) both edging lower by 0.2 per cent and 0.4 per cent, respectively.
Gold, uranium stocks lift as safe haven demand rises
Gold-related equities saw strong performances amid growing market uncertainty. Newmont Corporation (ASX: NEM) gained 2.5 per cent and Northern Star Resources Limited (ASX: NST) climbed 1.5 per cent, mirroring a spike in global gold prices to $US3394.68 per ounce. Uranium stocks also surged as hedge funds scrambled to cover short positions, following news of a $US100 million capital raise by the Sprott Physical Uranium Trust. Gains included Deep Yellow Limited (ASX: DYL) up 5.7 per cent, Boss Energy Limited (ASX: BOE) up 3.2 per cent, Silex Systems Limited (ASX: SLX) up 3 per cent, and Paladin Energy Limited (ASX: PDN) up 4.4 per cent. Santos Limited (ASX: STO) added 0.5 per cent following ongoing speculation over a potential $30 billion takeover bid.
Wall Street slips amid Middle East tensions and weak data
Global markets were pressured by rising Middle East tensions and disappointing economic indicators. The S&P 500 Index (NYSE: SPX) dropped 0.8 per cent, the Dow Jones Industrial Average (NYSE: DJI) fell 299 points, and the Nasdaq Composite Index (NASDAQ: IXIC)declined 0.9 per cent. Investor anxiety grew following Trump’s threats of potential strikes on Iran and calls for its “unconditional surrender”. Adding to the negative sentiment, US retail sales fell 0.9 per cent in May, suggesting weakening consumer demand. Among stocks, JetBlue Airways Corporation (NASDAQ: JBLU) plummeted 7.9 per cent on weak travel demand outlook, while ExxonMobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) rose 1.3 per cent and 3.2 per cent respectively, driven by a surge in oil prices.
The Australian sharemarket ended marginally lower on Wednesday, with the S&P/ASX 200 Index (ASX: XJO) down 0.1 per cent to close at 8531.2. The modest dip came despite eight of the eleven industry sectors posting gains, as a sharp retreat in the materials sector weighed heavily on the broader market. The key driver of this decline was renewed pressure on iron ore prices, which slipped below $US93 a tonne in Singapore.
Iron ore slump hits major miners
Iron ore-exposed stocks bore the brunt of the market’s retreat, with BHP Group Limited (ASX: BHP) falling 1.2 per cent to $36.86, Fortescue Metals Group Limited (ASX: FMG) sliding 4 per cent to $15.03, and Mineral Resources Limited (ASX: MIN) tumbling 4.6 per cent to $22.59. Citi downgraded its 12-month forecast for iron ore prices to $US90 per tonne, adding further pressure. Gold miners also declined despite global tensions, with Northern Star Resources Limited (ASX: NST) dropping 2 per cent to $20.58 and Evolution Mining Limited (ASX: EVN)falling 3.6 per cent to $8.15. In contrast, uranium stocks rallied, with Boss Energy Limited (ASX: BOE) gaining 4.3 per cent after strong production results, and Deep Yellow Limited (ASX: DYL) advancing 3.9 per cent on speculation of higher uranium prices.
Global jitters amid Fed hold and Middle East unrest
On Wall Street, markets were mixed following the US Federal Reserve’s decision to leave interest rates unchanged. The S&P 500 Index (NYSE: SPX) dipped slightly, the Dow Jones Industrial Average (NYSE: DJI) fell 44 points, while the Nasdaq Composite Index (NASDAQ: IXIC) inched up 0.1 per cent. Fed Chair Jerome Powell maintained a cautious tone, highlighting uncertainty around inflation and growth, while signaling two potential rate cuts in 2025. Rising geopolitical risks, particularly from escalating tensions between Israel and Iran, added to investor unease and pushed oil prices higher. Meanwhile, payment stocks Visa Inc (NYSE: V), Mastercard Inc (NYSE: MA), and PayPal Holdings Inc (NASDAQ: PYPL) each dropped over 4 per cent following the passage of the US Congress’s stablecoins act.
Australian market edges lower amid banking sector drag
The Australian share market declined for a fourth consecutive session, with the S&P/ASX 200 Index (ASX: XJO) falling 18.2 points, or 0.2 per cent, to close at 8505.5 — its lowest level since early June. The retreat came as investors adopted a cautious stance amid escalating geopolitical concerns, particularly regarding potential US involvement in the conflict between Israel and Iran. Six of the 11 market sectors closed in negative territory, leading to a modest weekly drop of 0.5 per cent for the benchmark index. The financial sector weighed heavily, with Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Limited (ASX: NAB), Westpac Banking Corporation (ASX: WBC), and Australia and New Zealand Banking Group Limited (ASX: ANZ) all recording losses.
Healthcare gains and mining divergence
In contrast, defensive sectors saw renewed investor interest. Healthcare stocks performed strongly, with Pro Medicus Limited (ASX: PME), ResMed Inc. (ASX: RMD), and Cochlear Limited (ASX: COH) all posting gains, the latter climbing 2.5 per cent to $295.64. The mining sector delivered mixed results following a Citi downgrade of lithium price forecasts. Liontown Resources Limited (ASX: LTR) rebounded slightly despite initial losses, while Pilbara Minerals Limited (ASX: PLS) and Mineral Resources Limited (ASX: MIN) fell sharply. In corporate developments, Betr rose 5.3 per cent after submitting an all-share bid to acquire PointsBet Holdings Limited (ASX: PBH), while Bowen Coking Coal Limited (ASX: BCB) plunged 48.6 per cent after warning of potential mine suspensions due to market conditions and state royalties.
US markets decline amid war fears
On the global front, the US500 Index (CBOE: SPX), the primary benchmark for US equities, fell to 5948 points on June 22, marking a 0.32 per cent decline from the previous session. The downturn was driven by rising geopolitical instability following reports that the United States carried out airstrikes on Iranian nuclear facilities, stoking investor concerns over a broader regional conflict. Despite the short-term dip, the index has climbed 2.21 per cent over the past month.
What turmoil, says Commonwealth Bank of Australia?
The local market headed lower as investors weighed concerns about the escalating conflict in the Middle East, but the negative sentiment was not able to put a dent in the rise of Commonwealth Bank of Australia (ASX: CBA). The benchmark S&P/ASX 200 Index (ASX: XJO) gave up 30.6 points, or 0.4 per cent, to 8,474.90 points on Monday; and the broader All Ordinaries Index (ASX: XAO) lost 35.5 points, also 0.4 per cent, to 8,688; but Commonwealth Bank of Australia (ASX: CBA) gained another $1.82, or 1 per cent, to $184.35 – after setting a new intra-day record at $184.41. Offshore investors can’t seem to get enough of the nation’s biggest bank. Not all of the other big banks rode on Commonwealth Bank of Australia (ASX: CBA)’s coat-tails: Westpac Banking Corporation (ASX: WBC) put on 21 cents, or 0.6 per cent, to $33.42; but Australia and New Zealand Banking Group Limited (ASX: ANZ) eased 18 cents, or 0.6 per cent, to $28.21; and National Australia Bank Limited (ASX: NAB) softened 3 cents, to $38.88. Elsewhere in the industrial world, Qantas Airways Limited (ASX: QAN) slipped 19 cents, or 1.9 per cent, and global logistics giant Brambles Limited (ASX: BXB) gave up $1.23, or 5 per cent, to $23.33. Adairs Limited (ASX: ADH) sank 53 cents, or 20.5 per cent, to $2.05 after warning that full-year earnings would come in below last year’s. It said that while stronger promotional activity had boosted sales, it would dent margins. The news spooked investors in rival retailer Temple & Webster Group Limited (ASX: TPW), which shed 48 cents, or 2.3 per cent, to $20.87; JB Hi-Fi Limited (ASX: JBH)fell 30 cents, or 0.3 per cent, to $108.40; but furniture heavyweight Nick Scali Limited (ASX: NCK) advanced 19 cents, or 1 per cent, to $18.33.
Resources mostly lower
In the energy sector, Santos (ASX: STO) added one per cent, while Woodside (ASX: WDS) was flat as Brent crude rose $US2 over the Australian session to over $US78 a barrel, near its highest level since late January. In big mining, BHP Group Limited (ASX: BHP) retreated 57 cents, or 1.6 per cent, to $35.64; Rio Tinto Limited (ASX: RIO) slipped 34 cents, or 0.3 per cent, to $101.83; and Fortescue Ltd (ASX: FMG) walked back 15 cents, or 1 per cent, to $14.54. Elsewhere in resources, gold miner West African Resources Limited (ASX: WAF) gained 4 cents, or 1.8 per cent, to $2.21; fellow gold producer Newmont Corporation (NYSE: NEM) lifted $1.07, or 1.2 per cent, to $90.37; North American-based Capstone Copper Corp. (TSE: CS) gained 12 cents, or 1.4 per cent, to $8.57; and Namibia-based uranium producer Paladin Energy Limited (ASX: PDN) advanced 6 cents, or 0.8 per cent, to $7.42. But at the other end of the spectrum, gold miner Genesis Minerals Limited (ASX: GMD) dropped 18 cents, or 3.9 per cent, to $4.43; coal producer Whitehaven Coal Limited (ASX: WHC) lost 20 cents, or 3.5 per cent, to $5.57; gold miner Northern Star Resources Limited (ASX: NST) fell 64 cents, or 3.1 per cent, to $19.88; fellow goldie Capricorn Metals Ltd (ASX: CMM) shed 32 cents, or 3 per cent, to $10.20; Ramelius Resources Limited (ASX: RMS), also a gold miner, leaked 8 cents, or 3 per cent, to $2.58; Canadian-based Champion Iron Limited (ASX: CIA) slid 12 cents, or 3 per cent, to $3.95; and Indonesia-based nickel producer Nickel Industries Limited (ASX: NIC) lost 2 cents, or 2.8 per cent, to 70 cents.
US markets rally, but big news comes after close
Overnight, US markets rallied as Iran did not close the Strait of Hormuz, a crucial oil shipping route; also, prospects of the United States Federal Reserve cutting interest rates as early as July contributed to the upbeat mood. The market also shrugged off Iranian missile attacks on US bases in Qatar and Iraq, which did not cause any reported casualties, mainly because Iran gave the US advance notice of the missile strikes. Despite the attack, the US markets moved higher, with the broad S&P 500 Index (NYSEARCA: SPY) gaining 57.33 points, or 1 per cent, to 6,025.17; the blue-chip Dow Jones Industrial Average (INDEXDJX: DJI) adding 374.96 points, or 0.9 per cent, to 42,581.78; and the tech-heavy Nasdaq Composite Index (NASDAQ: IXIC) rising 183.57 points, also up 0.9 per cent, to 19,630.98. Bonds also rallied, with the US 10-year treasury trading 4 basis points lower at 4.34 per cent and at the short end, the two-year yielding 3.85 per cent, down 6 basis points. The major impact of Middle East events was felt in the oil price, which fell 7 per cent after Iran’s subdued response, and restraint on the Strait of Hormuz. After trading closed, US President Donald Trump announced an imminent ceasefire between Israel and Iran sent stock futures climbing, with Dow Jones Industrial Average (INDEXDJX: DJI) and S&P 500 Index (NYSEARCA: SPY) futures up about 0.4 per cent, and Nasdaq Composite Index (NASDAQ: IXIC) futures up about 0.6 per cent.
With investors on the sidelines, waiting to see whether the fragile cease-fire between Israel and Iran will hold, there was not much in the way of index movement in the Wednesday session on the Australian Securities Exchange (ASX), with the benchmark S&P/ASX 200 Index (ASX: XJO) closing up 3.7 points at 8,559.20, and the broader All Ordinaries Index (ASX: XAO) accruing 5.1 points to 8,779. The ‘story’ for the day was Commonwealth Bank of Australia (ASX: CBA) hitting yet another record high, gaining $3.27, or 1.7 per cent, to $191.40. The stock is now up almost 25 per cent in 2025 so far, and trades at more than 30 times expected FY26 earnings, making it arguably the most expensively rated bank in the world. The big four Australian banks normally trade on about 12–13 times earnings. Of its peers, Australia and New Zealand Banking Group Limited (ASX: ANZ) lifted 50 cents, or 1.8 per cent, to $29.10; National Australia Bank Limited (ASX: NAB) picked up 30 cents, or 0.8 per cent, to $40.05; and Westpac Banking Corporation (ASX: WBC) added 25 cents, or 0.7 per cent, to $34.54.
Newly refloated airline Virgin Australia Holdings Limited (ASX: VGN) followed its strong debut yesterday—when it rose 11.4 per cent above the $2.90 issue price—with a gain of 11 cents, or 3.4 per cent, to $3.34. Equipment-financier and consumer buy-now-pay-later company Humm Group Limited (ASX: HUM) spiked 5.5 cents, or 11.5 per cent, higher to 54 cents after the company confirmed a takeover offer from the family office of its chairman, Andrew Abercrombie. Counter-drone-technology company DroneShield Limited (ASX: DRO) surged 35.5 cents, or 19.9 per cent, to $2.15 after being awarded its biggest-ever defence order — a package of three contracts worth $61.6 million, with the end-buyer being a European military customer. The contracts are for handheld detection and counter-drone systems and associated accessories. The order’s value is larger than the entire $57.5 million revenue DroneShield Limited (ASX: DRO) generated in 2024.
In economic news, the Australian Bureau of Statistics (ABS) reported a fall in annual trimmed-mean inflation in May to 2.4 per cent—its lowest level since November 2021—which led some bank economists to forecast a rate cut next month.
Resources screens mostly red
Among the big miners, BHP Group Limited (ASX: BHP) eased 37 cents, or 1 per cent, to $36.11; Rio Tinto Limited (ASX: RIO) slipped 64 cents, or 0.6 per cent, to $104.30; and Fortescue Metals Group Limited (ASX: FMG) gave up 35 cents, or 2.3 per cent, to $14.88. In energy, Woodside Energy Group Limited (ASX: WDS) surrendered 16 cents, or 0.7 per cent, to $24.00 despite sealing a US$5.7 billion deal over its Louisiana LNG project, while Santos Limited (ASX: STO) lost 9 cents, or 1.2 per cent, to $7.57.
In coal, Whitehaven Coal Limited (ASX: WHC) walked back 12 cents, or 2.2 per cent, to $5.45; New Hope Corporation Limited (ASX: NHC) shed 10 cents, or 2.6 per cent, to $3.75; and Stanmore Resources Limited (ASX: SMR) fell 9 cents, or 4.7 per cent, to $1.83. Mineral Resources Limited (ASX: MIN), which mines lithium and iron ore, slipped $1.28, or 6 per cent, to $20.18; lithium producer Pilbara Minerals Limited (ASX: PLS) lost 4 cents, or 3.1 per cent, to $1.25; and diversified miner South32 Limited (ASX: S32) eased 8 cents, or 2.7 per cent, to $2.84.
In gold, Capricorn Metals Limited (ASX: CMM) fell 49 cents, or 4.7 per cent, to $9.90; Genesis Minerals Limited (ASX: GMD) softened 18 cents, or 4 per cent, to $4.34; Perseus Mining Limited (ASX: PRU) slid 12 cents, or 3.4 per cent, to $3.37; and Northern Star Resources Limited (ASX: NST) gave up 52 cents, or 2.6 per cent, to $19.28. Green arrows were rare on the resources screens, but Namibia-based uranium producer Paladin Energy Limited (ASX: PDN) firmed 26 cents, or 3.5 per cent, to $7.75; Capstone Copper Corp. (TSX: CS) gained 9 cents, or 1 per cent, to $8.95; Canadian-based uranium project developer NexGen Energy Ltd. (ASX: NXG) advanced 8 cents, or 0.8 per cent, to $10.42; and gold miner Gold Road Resources Limited (ASX: GOR) lifted 2 cents, or 0.6 per cent, to $3.33.
White House, Fed differ on rate cuts
In the US, tensions in the Middle East appeared to be calming, and investors are preparing for May’s personal-consumption-expenditures price-index reading, which will be released on Friday. The broad S&P 500 Index (INDEXSP: SPX) finished Wednesday’s session flat, minutely lower at 6,092.16, while the 30-stock Dow Jones Industrial Average (INDEXDJX: DJI) slid 106.59 points, or 0.3 per cent, to 42,982.43; but the Nasdaq Composite Index (NASDAQ: IXIC) appreciated 61.02 points, or 0.3 per cent, to 19,973.55, edging closer to a new record. The Nasdaq was powered by chipmaker NVIDIA (NASDAQ: NVDA), which jumped 4.3 per cent, touching a record high and lifting its market capitalisation to US$3.75 trillion, making it the world’s most valuable company.
Federal Reserve Chair Jerome Powell said this week that the central bank’s preferred inflation measure is likely to rise to 2.3 per cent, while the ‘core’ figure, which excludes food and energy, is expected to tick up to 2.6 per cent from 2.5 per cent in April. However, Powell stressed that the central bank is committed to keeping inflation under control in the face of “uncertain” effects of Trump’s tariffs on the economy: while the White House is demanding rate cuts, the Federal Reserve chair is determined to wait to see the impact on inflation—rate-cut decisions will be based on that.
Written by Atchison1, Jul 2025
