Australian Shares Slip, Still on Track for Weekly Rise

Australian shares fell 26 points or 0.3% to 8,813 around midday on Friday, unwinding gains from the prior three sessions following a plunge on Wall Street overnight amid a surge in oil prices and weak earnings from two major companies. Locally, June's robust employment data raised prospects of another rate increase by the Reserve Bank, following three rate hikes this year. Caution also grew as Australia's inflation for June and Q2 will be due next week, with concerns about inflationary pressures persisting. Most sectors were in the red, led by tech, consumer durables, and non-energy minerals. Mining giant BHP Group slipped 1.6%, along with gold stocks such as Northern Star Resources (-3.3%) and Evolution Mining (-2.9%). Still, local markets are on track to post their first weekly gain in three weeks, up around 0.2% so far, supported by signs of resilience in manufacturing and services activity during July, as highlighted by S&P flash PMIs.

Australia's ASX 200 added 16 points or 0.2% to close at 8,839 on Thursday, up for the third session amid strength in non-energy minerals, utilities, and tech. However, markets trimmed morning gains after June's robust employment data raised prospects of another rate hike by the Reserve Bank. The central bank has raised cash rates three times this year to 4.35% to curb inflation, fully reversing the policy easing made in 2025. Meanwhile, the jobless rate held steady at 4.4%, in line with market estimates. Traders also cautiously braced for the flash PMI readings for July, set to be due Friday. Woodside Energy rose 0.5% amid the deepening Middle East tensions while Santos edged up 0.3% despite missing its second-quarter sales revenue. A rise in gold prices supported miners, boosting Northern Star Resources (2.6%) and Evolution Mining (2.1%). Meanwhile, the four major banks gained between 0.5% and 1.3%. In contrast, Macquarie fell 0.6% after announcing the retirement of its longtime CEO.

Australian stocks climbed 94 points or 1.1% to 8,917 on Thursday morning, rising for the third straight session and notching their highest level in five weeks. Stronger U.S. equity futures boosted risk appetite despite an overnight weakness on Wall Street after U.S. President Donald Trump threatened to bomb Iranian infrastructure in response to any attacks on ships transiting the Strait of Hormuz. However, gains were capped by vigilance ahead of June domestic labor market data later today after May’s solid jobs growth contrasted with a near four-year high in the jobless rate. Meanwhile, the flash PMI readings for July will also be due on Friday. Gains were broad-based, led by tech, non-energy minerals, financials, and industrial services. The four big banks jumped between 1.1% and 1.4% while heavyweight BHP Group advanced 1.1%. Other top performers were Mineral Resources (2.9%), PLS Group (2.7%), Goodman Group (2.4%), and Brambles Ltd. (1.2%),