Australia Equities Set for Second Weekly Decline

Australian stocks slipped 57 points or 0.7% to 8,783 on Friday morning deals following a subdued session the day before, dragged by overnight weakness on Wall Street as the Middle East conflict escalated after the U.S. launched its latest wave of airstrikes on Iran. Locally, traders turned cautious ahead of next week's June labor data, following May’s strongest jobs growth in five months, even as unemployment hovered near a four-year high. Still, losses were partly capped by hopes that the main trading partner, China, could unveil new support measures at the Politburo meeting in late July to counter sluggish Q2 GDP growth. Electronic tech, non-energy minerals, and manufacturing led the downside, partly offset by strength in energy minerals, retail trade, and process industries. Heavyweights BHP Group fell 2.6%, alongside Northern Star Resources (-3.7%), Evolution Mining (-4.4%), and South32 (-3.2%). For the week, the market is tracking a 0.2% loss, extending the prior period’s drop.

The ASX 200 closed flat at 8,841 on Thursday, giving back early gains as strength in consumer non-durables, utilities, and consumer services offset weakness in tech and energy stocks. Traders assessed Australia's consumer inflation expectations, which fell to a six-month low of 4.7% in July, although underlying inflation remains sticky and above the Reserve Bank's 2–3% target range. Meanwhile, U.S. President Trump and Chinese leader Xi Jinping are expected to meet in late September, according to U.S. Trade Representative Jamieson Greer, ahead of the expiry of the current trade truce. Separately, U.S. stock futures inched up after softer U.S. inflation eased expectations of an imminent Fed rate hike. BHP Group dropped 2.2% after reporting weaker quarterly copper output. Meantime, Rio Tinto lost 0.9%, trimming gains from the prior session. In contrast, the big four banks advanced between 0.3% and 1.5%, while Reece (2.3%), ASX Ltd. (2.2%), and WiseTech Global (2.0%) posted notable gains.

Australian shares edged up in early Thursday trade, with the benchmark ASX 200 hovering near 8,850 to mark a second day of gains. Firmer U.S. equity futures lifted sentiment after Wall Street closed higher overnight amid easing inflation signals and a strong start to the Q2 earnings season. Locally, Treasurer Jim Chalmers pressed regulators to adopt a more pro-growth stance to lift productivity. In Asia, China’s weakest annual GDP growth since 2022 in Q2 raised expectations of fresh stimulus, as officials noted that external risks remain elevated and demand trails supply. Utilities, healthcare, and consumer services led gains, partly tempered by weakness in consumer durables, electronic tech, and non-energy minerals. The big four banks rose between 0.2% and 1.0%, with notable gains in Seek (1.9%), ASX (1.4%), and TPG Telecom (0.7%). Traders now await inflation expectations data from the Melbourne Institute, alongside U.S. retail sales and jobless claims, for further economic cues.