ASX 200 Extends Slide But Logs Modest Weekly Rise

The ASX 200 lost 82 points or 0.9% to end at 8,829 on Friday, marking the second straight session of losses and retreating further from a two-month peak. Sentiment remained downbeat after the U.S. Fed struck a hawkish tone in its policy meeting earlier this week, raising prospects of higher U.S. interest rates later this year. Meanwhile, doubts grew over upcoming U.S.–Iran peace talks as Tehran seeks more signs of implementation of a recently signed memorandum of understanding with Washington. Non-energy minerals, commercial services, consumer durables, and industrials were among top losers. BHP Group tumbled 5.1% after flagging cost overruns at its Jansen Stage 2 potash project in Canada and booking a hefty impairment charge. Other steep laggards included Evolution Mining (-5.1%), PLS Group (-4.7%), and REA Group (-3.1%). Despite Friday’s slide, the index still advanced 0.3% for the week, its second straight weekly rise, lifted by the Reserve Bank’s pause on rate hikes.

Australian stocks plunged 96 points, or 1.1%, to 8,815 by midday Friday, extending the prior session’s slide and moving further away from a two-month high, as softer commodity prices weighed heavily on miners. A potentially severe El Niño later in 2026 also pressured sentiment, as it could exacerbate domestic price pressures. Meanwhile, U.S. equity futures were mixed after the S&P 500 and Nasdaq rallied overnight, amid optimism over a potential U.S.-Iran deal that helped temper hawkish Fed concerns. BHP Group tumbled 3.7%, and Rio Tinto lost 3% as iron ore prices weakened, with lower energy and freight costs eroding margins amid sluggish Chinese demand. PLS Group sank 5.3%, followed by Mineral Resources (-4.3%), and Xero Ltd. (-2.5%. Three of the four big banks eased between 0.6% and 0.8%. Still, the local market is tracking a second consecutive weekly gain, up about 0.2% so far, supported by the Reserve Bank’s pause on rate hikes and easing geopolitical headwinds.

Australia's ASX 200 slipped 55 points, or 0.6%, to finish at 8,911 on Thursday, snapping a four-session winning streak. Early gains faded as sentiment turned sour after U.S. President Donald Trump warned that the new ceasefire with Iran was not final, raising fears the Middle East conflict could reignite. Meanwhile, the U.S. Federal Reserve held rates steady, as expected, but signaled that its next move might be higher, stoking caution. Local markets retreated from a two-month high, pressured by profit-taking, persistent inflation concerns despite a cumulative 75bp of rate hikes by the Reserve Bank since January, and fears that a potentially severe El Niño later in 2026 could fuel further price pressures in Australia. Among major sectors, non-energy minerals, consumer services, and utilities were mainly lower. Three of the four major banks fell between 0.6% and 1.1%, while notable laggards included Xero (-4.3%), Wisetech Global (-3.7%), PLS Group (-2.4%), and ASX Ltd. (-2.4%).