Australia Shares Fall Again as July Opens

Australian equities slipped 26 points, or 0.3%, to 8,751 on the first trading day of a new month, marking a second session of losses as retail trade, commercial services, producer manufacturing, and utilities weighed. Sentiment remained cautious at the start of the new financial year, with the Reserve Bank's June minutes underscoring inflation still well above the 2–3% target and underlying pressures mounting in Q2, leaving scope for further tightening after three hikes this year. Meanwhile, industry conditions remained deeply contracted in June despite a slight improvement from May, as higher costs and uncertainty lingered. Offshore cues added pressure: weaker U.S. futures followed Wall Street’s strongest quarter in six years, capped by volatility in chip stocks and geopolitical strains from the war in the Middle East. The big four banks fell between 0.6% and 1.7%, while sharp declines hit Coles Group (-6.7%), Greatland Resources (-4.7%), Whitehaven Coal (-2.8%), and Ampol (-1.1%).

The ASX 200 fell 45 points, or 0.5%, to close at 8,779 on Tuesday, snapping two sessions of gains as weakness in non-energy minerals, transport, and producer manufacturing weighed. Sentiment turned cautious after the Reserve Bank of Australia's June meeting minutes flagged inflation still well above the 2–3% target, with underlying pressures seen mounting in Q2. Policymakers signaled further tightening remains possible after three hikes this year, noting restrictive policy and elevated oil prices could temper demand and aid economic rebalancing. Two of the big four banks slipped between 0.3% and 0.7%, while BHP Group (-0.9%), Northern Star (-5.2%), and Evolution (-4.7%) lagged. In contrast, Euroz Hartleys jumped 7.6% after agreeing to sell its capital markets arm to Canada’s Bank of Montreal. Despite the pullback, the market logged a third straight monthly gain, up by 0.5% and around 3.5% for the quarter, underpinned by resilient spending, stronger jobs, and continued factory growth.

Australian shares were little changed, hovering near 8,823 in early Tuesday trade and pausing after two sessions of gains, as investors awaited the central bank’s June meeting minutes later today for clues on the policy outlook. Traders also turned to June PMI in China, with the data expected to shed light on demand from Australia’s largest trading partner. Meanwhile, U.S. futures eased after Wall Street posted strong gains overnight, with signs of de-escalation in U.S.–Iran tensions supporting broader risk sentiment. Gains in tech, consumer, and commercial services helped offset weakness in miners and energy. The big four banks rose 0.9%–1.4%, while Computershare (2.6%) and Pro Medicus (1.9%) advanced. However, heavyweight BHP Group (-0.7%) and Telstra (-1.4%) lagged. The ASX is up about 1% in June, set for a third straight monthly gain, supported by resilient spending and a rebound in employment. The benchmark is also tracking its first quarterly rise in three, up around 4% so far.