ASX 200 Closes Flat Ahead of Key Data

The S&P/ASX 200 was little changed on Wednesday, closing at 8,979 after edging higher in early deals, as gains in healthcare, commercial services, and producer manufacturing were offset by losses in energy minerals, consumer durables, and industrial services. Risk appetite faded a touch as U.S. stock futures were mixed, with traders assessing the path of the U.S.-Iran war amid uncertainty about renewed peace talks. At the same time, vigilance emerged ahead of the releases of March labor market data in Australia and Q1 GDP figures in top trading partner China, both scheduled for Thursday. Meantime, the IMF warned the US–Israel war on Iran risks triggering an “energy crisis of unprecedented scale” that could push the global economy into recession. Evolution Mining (9.1%), Pro Medicus (4.0%), and Wisetech Global (2.9%) advanced while Lynas Rare Earths Ltd. (-6.6%), Santos (-2.6%), and Yancoal Australia (-2.2%) lagged.

Australian shares rose 23 points, or 0.3%, in early Wednesday trade, marking a second straight gain after Wall Street rallied Tuesday on falling oil prices and hopes of a diplomatic breakthrough in the Middle East. Meanwhile, reports suggested that Washington and Tehran were discussing a second round of negotiations, but there's no official schedule yet. Strength in the ASX 200 was capped by caution ahead of the releases of March labor market data and April inflation expectations in Australia in the coming days. Meantime, the IMF warned the US–Israel war on Iran risks sparking an “energy crisis of unprecedented scale” that could push the global economy into recession. Treasurer Jim Chalmers said Australians were “paying a hefty price for events on the other side of the world.” Healthcare, process industries, and non-energy minerals were mainly higher, with notable movers included Evolution Mining (7.4%), Genesis Minerals (4.8%), Pro Medicus (3.1%), and Northern Star Resources (2.6%).

The S&P/ASX 200 rose 45 points, or 0.5%, to end at 8,971 on Tuesday, halting two sessions of losses after Wall Street rallied Monday on hopes for a resolution to the Middle East war, even as the U.S. blocked Iran’s ports following collapsed peace talks. However, gains were capped by sharp drops in Australia’s consumer and business sentiment, reflecting fallout from the conflict that triggered a global oil shock and lifted domestic inflation risks. Meantime, an RBA official warned of stagflation risks if energy shocks persist, citing elevated inflation and limited supply capacity.. Commercial services, utilities, and healthcare advanced, offset by declines in consumer non-durables, industrial services, and transport. BHP jumped 3.3% after China’s state iron ore buyer allowed plants to resume bidding for some U.S.-dollar cargoes. Macquarie climbed 3.9% on bets of structurally higher commodity prices, while the “big four” banks mostly fell.