Australian Equities Slump Amid U.S.–Iran tensions, Hawkish RBA

2026-09-10 01:19 By Farida Husna 1 min. read

Australian stocks plunged 150 points or 1.7% to 8,761 in early Thursday trade, marking one of the sharpest single-day drops in recent weeks and extending losses for a third session.

Markets lingered at their lowest in six weeks, with sentiment hit hard by the third straight drop on Wall Street overnight as mounting U.S.–Iran tensions pushed Brent crude above USD100/bbl, stoking inflation fears.

Meantime, U.S.

Treasury yields climbed ahead of key CPI data.

Locally, rate concerns deepened after Deputy Gov.

Andrew Hauser said the RBA will debate further tightening at its September meeting, citing persistent inflation risks, and Assistant Governor Sarah Hunter warned of limited tolerance for stronger price pressures.

All sectors fell, led by healthcare, non-energy minerals, retail, and logistics.

The four big banks fell between 1.4% and 1.8%, while BHP Group slid 3.2%.

Other notable laggards included PLS Group (-3.6%), Lynas Rare Earths (-3.0%), Nextdc (-2.9%), and Regis Resources (-2.3%).



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Australian Equities Slump Amid U.S.–Iran tensions, Hawkish RBA
Australian stocks plunged 150 points or 1.7% to 8,761 in early Thursday trade, marking one of the sharpest single-day drops in recent weeks and extending losses for a third session. Markets lingered at their lowest in six weeks, with sentiment hit hard by the third straight drop on Wall Street overnight as mounting U.S.–Iran tensions pushed Brent crude above USD100/bbl, stoking inflation fears. Meantime, U.S. Treasury yields climbed ahead of key CPI data. Locally, rate concerns deepened after Deputy Gov. Andrew Hauser said the RBA will debate further tightening at its September meeting, citing persistent inflation risks, and Assistant Governor Sarah Hunter warned of limited tolerance for stronger price pressures. All sectors fell, led by healthcare, non-energy minerals, retail, and logistics. The four big banks fell between 1.4% and 1.8%, while BHP Group slid 3.2%. Other notable laggards included PLS Group (-3.6%), Lynas Rare Earths (-3.0%), Nextdc (-2.9%), and Regis Resources (-2.3%).
2026-09-10
ASX 200 Closes at 6-week Low
Australia’s ASX 200 eased 0.1% to end at 8,911 on Wednesday, extending prior weakness to a six-week low as caution lingered after oil neared USD 100 and global inflation worries deepened. Locally, business mood fell to a three-month low in August while consumer sentiment sank in September. Meanwhile, regional markets dipped after reports that Iran escalated tensions, firing missiles at a U.S. base in Jordan and attacking ships in the Strait of Hormuz. In top trading partner China, headline inflation accelerated as expected in August while producer prices rose more than estimated. Healthcare, financials, and commercial services weighed on the index. CSL dipped 2.0% after cutting FY26 guidance and warning of slowing plasma demand and rising generic competition. The big four banks lost 0.4–2.2%. Strength in non-energy minerals, energy, and industrial services capped losses, with Woodside and Santos up 2.7% and 1.8%. Miners also gained amid solid rises in BHP (2.8%) and Rio Tinto 2.3%.
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Australian Stocks Subdued Ahead of China Data
Australian shares steadied on Wednesday morning, hovering near 8,910 after Tuesday’s sharp drop to a six-week low. Bargain hunting in non-energy minerals, energy stocks, and tech helped offset weakness in healthcare, commercial services, and financials. Sentiment remained fragile as oil prices surged and global inflation worries deepened, with local business confidence slipping to a three-month low in August and consumer sentiment sliding in September. Meanwhile, U.S. futures weakened after Wall Street’s overnight losses, driven by escalating Middle East tensions following attacks on Saudi energy facilities. On the trade front, China logged robust exports and imports in August, with trade surplus topping USD 800 billion so far this year. Miners led gains, with BHP up 2.2%, while Woodside Energy rose 2.3% and Santos added 1.4%. In contrast, three of the four big banks eased between 0.1% and 1%. Traders now await CPI and PPI data from main trading partner China later today.
2026-09-09