ASX 200 Reverses Early Losses to Finish Higher

The ASX 200 rose 54 points, or 0.6%, to close at 8,948 on Tuesday, rebounding from early weakness and marking a second straight gain. Sentiment brightened after U.S. President Trump said Washington was having “good talks” with Iran and that a deal was possible, easing fears of supply disruptions and sending oil prices lower. Locally, Australia is weighing its first new oil refinery in over six decades as the Middle East war squeezes supplies. Gains were broad-based, led by commercial services, healthcare, transport, and financials. The big four banks were up between 0.7% and 1.2%. Also, Sonic Healthcare rose 2.2%, along with Sigma Healthcare (1.8%), and Ramsay Health (1.2%). In contrast, Origin Energy edged lower after flagging possible data exposure affecting about 900,000 customers in a cybersecurity incident. Traders now await Australia’s June and Q2 inflation reports due Wednesday, with sticky price pressures still in focus despite three rate hikes by the Reserve Bank this year.

Australian stocks fell 28 points or 0.3%, to 8,866 on Tuesday morning trade, unwinding the prior day rally as weaker U.S. equity futures weighed on sentiment following another sharp sell-off in chipmakers on Wall Street overnight. Investors also grew cautious ahead of Australia’s June and Q2 inflation reports later this week, with sticky price pressures still a concern. Meanwhile, Reserve Bank Governor Michele Bullock is due to speak later today while the U.S. Federal Reserve’s policy rate decision also looms. Still, losses were partly contained after U.S. President Trump said Washington and Tehran were engaged in diplomatic talks to ease tensions. Separately, Iran and Oman are trying to reach an agreement to restart shipping through the Strait of Hormuz. Tech, non-energy minerals, and industrial services led declines. The big four banks eased between 0.1% and 0.7%. Heavyweights BHP Group fell 1.0%, along with Evolution Mining (-1.8%), Santos Ltd. (-1.3%), and Macquarie Group (-1.1%).

The ASX 200 surged 122 points, or 1.4%, to close at 8,894 on Monday, bouncing back from prior losses as U.S. futures rallied and oil prices slid on easing geopolitical tensions. Locally, Australia's flash PMI data showed services activity expanding at the fastest pace in six months in July, while factory output posted its strongest rise this year. In main trading partner China, industrial profits grew 18.7% yoy in H1, holding firm though softer than the January–May pace. However, gains were tempered by caution ahead of Australia’s June and Q2 inflation prints later this week, with concerns over sticky price pressures lingering. All sectors advanced, led by tech, commercial services, non-energy minerals, and process industries. Capricorn Metals soared 14.3% after boosting gold reserves by 33% to 5.24 million ounces. The four major banks rose between 1.1% and 1.5%, while standout performers included BHP (2.2%), Goodman Group (3.3%), Aristocrat Leisure (2.1%), and Evolution Mining (2.0%).