Australian Shares Up Over 1%

The S&P/ASX 200 rose more than 1% to around 8,960 in Wednesday morning trade, reversing losses from the previous session as banking and mining stocks led the market higher. The financial sub-index climbed nearly 3% to a three-month high, likely driven by dip buying after the insurance sector came under pressure on concerns surrounding AI-related risks. Top lender Commonwealth Bank also added support, jumping 6.6% to its highest since November 11, 2025, following a record first-half cash earnings of A$5.45 billion. Additionally, gold miners gained 0.7% for a third straight session, pushing the broader mining sector 0.7% higher. Heavyweight miners BHP and Rio Tinto rose 1.2% and 0.9%, respectively, while gold producer Evolution Mining jumped 3.4% after its half-year profit more than doubled. On the downside, biotech giant CSL extended losses, down 6.1% to an eight-year low following the departure of its chief executive officer and a 7% drop in its first-half earnings.

The S&P/ASX 200 closed slightly lower at around 8,867 on Tuesday, trimming earlier gains as a late sell-off in heavyweight CSL dragged the index. The healthcare giant slid nearly 5% to over one-month low after announcing that Chief Executive Paul McKenzie will retire after a three-year tenure. Adding further pressure to the index, Commonwealth Bank, Westpac and ANZ Group declined between 0.7% and 2.4%. Meanwhile, Macquarie Group rose 0.8% after reporting a higher Q3 profit. In addition, Treasury Wine Estates jumped 3.5% after reaching a settlement with a major US distributor that had planned to exit the lucrative California market. On the economic front, consumer sentiment fell 2.6% month-on-month to a ten-month low of 90.5 in February 2026, as a 25 bps rate hike renewed pressure on household finances. Offering a brighter signal, NAB’s Business Confidence Index edged up to 3 in January 2026 from a downwardly revised 2 in December, marking its highest reading since October.

The S&P/ASX 200 climbed 1.9% to close at 8,870 on Monday, rebounding from heavy losses the previous week, tracking significant gains on Wall Street last Friday. US stocks gathered momentum after easing concerns over AI-driven disruption lifted technology shares. In Australia, attention has shifted to a busy week of corporate earnings and economic data. CAR Group surged 9.9% after posting higher H1 net profit and reaffirming its FY26 outlook. Materials stocks also supported the index amid firm underlying commodity prices. Mining giants BHP Group, Rio Tinto, and Fortescue gained between 1.9% and 2.6%, while gold miners Newmont Corporation, Evolution Mining, and Northern Star Resources climbed between 3.6% and 6.5%. On the economic front, household spending unexpectedly fell 0.4% month-on-month in December 2025. It marked the first monthly decline since March 2024, reflecting the ongoing impact of cost-of-living pressures and elevated interest rates.