Australia Shares Retreat to Near 2-Week Low

The ASX 200 ended almost flat to finish at 8,793 on Tuesday, after a third session of weakness, with gains in non-energy minerals, tech, and energy minerals offsetting losses in healthcare, retail trade, and financials. Traders anticipated Australia's labor market data after May’s solid jobs growth contrasted with a near four-year high in the jobless rate. Markets recovered from early losses amid stronger U.S. stock futures on reports of mediation in the Middle East, with President Trump said to be considering a 10-day ceasefire to reopen the Strait of Hormuz. In top trading partner China, officials pledged to meet full-year growth targets despite soft Q2 results, ahead of Politburo meetings in late July. Nextdc surged 8.0% on stronger utilisation. Energy stocks also advanced, boosted by Woodside Energy (1.1%) and Origin Energy (1.3%). On the downside, the big four banks fell between 0.6% and 1.5%, while Pro Medicus (-3.3%), Sonic Healthcare (-2.7%), and PLS Group (-1.9%) also dragged.

Australian equities fell 47 points or 0.5% to 8,744 on Tuesday morning deals, extending weakness for the fourth straight session and approaching their lowest level in nearly two weeks. Sentiment tracked weaker U.S. futures after Wall Street closed lower overnight, pressured by rising oil and Treasury yields. Geopolitical tensions added to caution as President Trump vowed Iran would “pay” for the deaths of three U.S. service members, while Yemen’s Houthis declared a maritime embargo on Saudi Arabia. Locally, traders stayed guarded ahead of June labor data and July flash PMIs later this week. Most sectors dropped, led by manufacturing, healthcare, logistics, and process industries. The big four banks lost 0.9–1.2%, while Pro Medicus (-3.6%), QBE (-2.1%), Brambles (-1.9%), and Lynas (-1.0%) weighed. Bucking the trend, Yancoal Australia jumped 3.9% while South32 was up 3.7%. Nextdc rose 2.6% after reporting an 11% rise in contracted utilisation over the final ten weeks of its fiscal year.

The ASX 200 finished little changed at 8,791 on Monday, pausing after two sessions of weakness. Energy minerals, consumer services, and non-durables gained, offset by declines in tech, healthcare, and non-energy miners. Investors stayed cautious ahead of Australia’s June labor market data, and July flash PMIs later this week. Meanwhile, geopolitical tensions weighed as U.S.–Iran conflict widened with strikes on Iranian civil infrastructure. In main trading partner China, the central bank held key lending rates steady for a 14th straight month in its July fixing, in line with estimates, as policymakers sought to balance growth support against currency stability. Energy names rose, with Woodside Energy and Santos up 1.5% and 1.7%, respectively. Meanwhile, South32 jumped 4.2%, and Ampol Ltd. added 1.3%. On the downside, gold stocks fell, dragged by Evolution Mining (-1.8%) and Northern Star Resources (-0.9%). Among banks, two of the big four eased between 0.2% and 0.5%.