ASX 200 Closes at Two-Month High

The ASX 200 rose 49 points, or 0.5%, to finish at 8,966 on Wednesday, extending gains for a fourth session and notching a two-month peak. Sentiment was lifted by firmer U.S. futures ahead of Kevin Warsh’s first Federal Reserve meeting. At the same time, key details emerged on the interim U.S.-Iran agreement, which allows oil tanker passage through Hormuz in exchange for lifting port blockades. Locally, the Reserve Bank of Australia held cash rates at 4.35% Tuesday, in line with estimates, as the board balanced slowing growth against sticky inflation. Most sectors advanced, led by producer manufacturing, consumer services, and non-energy minerals. Index heavyweight BHP Group rose 0.6%, briefly hitting a record high. Meanwhile, gold miners surged as bullion rallied on Middle East news, with Northern Star up 2.5% and Regis 6.1%. Three of the four major banks added between 0.2% and 1.2%. In contrast, Karoon Energy slumped 13.4% after cutting its annual output forecast.

Australian equities rose modestly on Wednesday morning session, with the benchmark ASX 200 hovering near 8,945 after a muted prior session. Sentiment was lifted by firmer U.S. futures ahead of the Federal Reserve’s first policy decision under new Chair Kevin Warsh later today. Locally, the Reserve Bank held its cash rate steady at 4.35% on Tuesday, as expected, noting the impact of three hikes since January but keeping the door open to further tightening should inflation persist. However, gains were capped by official warnings that an El Niño in Australia has formed in the Pacific and could intensify into one of the strongest in decades by late 2026. Gains in consumer stocks, non-energy minerals, and logistics helped offset weakness in energy, retail, and transport. Early standouts included Evolution Mining (up 2.9%), Mineral Resources (2.8%), Wisetech Global (2.2%), and Sonic Healthcare (1.0%). The four major banks added between 0.3% and 1%, contributing to the modest advance.

The ASX 200 closed little changed at 8,918 on Tuesday, as strength in commercial services, energy, and financials offset declines in consumer staples, transport, and retail. Markets recovered from early losses after the Reserve Bank of Australia held its cash rate at 4.35%, as expected. The central bank also warned that inflation remains above target despite three hikes this year, signaling readiness to tighten further if pressures persist. In top trading partner China, fresh data were mixed: May retail sales missed forecasts, but industrial output accelerated, and the jobless rate hit a five-month low. Northern Star Resources (2.5%), Cochlear (2.1%), and Perseus Mining (1.5%) led gains, while the big four banks rose between 0.2%–0.9%. On the downside, PLS Group fell 4.6%, followed by South32 Ltd. (-4.5%), Wisetech Global (-3.9%), and Technology One Ltd. (-2.1%). Traders now brace for the U.S. Fed's first policy meeting under new Chair Kevin Warsh, with its rate decision due Wednesday.