ASX 200 Ends Muted as CSL Rally Counter Bank Losses

Australia’s ASX 200 closed nearly flat at 9,070 on Tuesday, halting a four-day slide after hitting a two-week low. Bargain hunters stepped in, while sentiment steadied as August consumer confidence improved, with mortgage holders less anxious about further rate hikes. Meanwhile, U.S. stock futures softened amid stalled U.S.–Iran peace talks. In China, July data showed slowing momentum with weaker spending and rising unemployment in Australia's top trading partner. Gains in healthcare, manufacturing, and consumer durables were offset by weakness in tech, consumer non-durables, and commercial services. BHP rose 3% after beating profit forecasts and declaring its highest dividend in four years. CSL surged almost 18% on strong 2027 growth guidance, its best session since 2001. Energy stocks Woodside (1.1%) and Santos (1.2%) gained on firmer oil prices. In contrast, the big four banks slipped 0.3%–1.3% after reporting sharp declines in home-loan applications following May’s tax changes.

Australian shares rose 25 points or 0.3% to 9,098 on Tuesday morning, reversing weakness in the prior four sessions. Bargain hunters entered after markets hit a two-week low, picking selective stocks in healthcare, manufacturing, non-energy minerals, and consumer non-durables. Sentiment also improved after August consumer sentiment hit a nine-month peak as mortgage holders became less concerned about further interest rate increases. However, gains were capped by losses on Wall Street overnight as oil prices spiked, stoking inflation concerns, amid escalating geopolitical tensions in the Middle East. In top trading partner China, July activity data showed the economy lost momentum as consumer spending stalled and urban investment contracted at a faster pace while unemployment ticked higher. Heavyweight BHP Group jumped 3.3% while other movers included Pro Medicus (13.1%), Cochlear Ltd. (6.0%), and JB Hi-Fi (1.5%). In contrast, the four big banks fell between 0.5% and 1.4%.

The ASX 200 lost 42 points or 0.5% to close at 9,073 on Monday, marking its fourth straight decline and a two-week low. Sentiment stayed cautious ahead of key July data from main trading partner China, including industrial output, retail sales, and unemployment. Meantime, U.S. Dow futures weakened as no interim peace deal emerged between Washington and Tehran, with few catalysts on the calendar aside from the Fed’s minutes due Wednesday. Locally, July labor data is expected later this week after June’s steady jobless rate. Meanwhile, RBA Assistant Governor Kent signaled tight monetary settings remain necessary to curb inflation. NAB slumped 4.7% on concerns that repealing property-investment tax breaks could weigh on earnings and credit growth. JB Hi-Fi plunged near 12%, its worst session since March 2020, after reporting a drop in Australian sales for the first month of fiscal 2027. Other notable laggards included Suncorp Group (-5.0%), QBE Insurance (-2.1%), and Pro Medicus (-2.0%).