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The ASX came under pressure today as another surge in oil and global bond yields weighed on risk appetite. Crude oil pushed higher as tensions between the US and Iran escalated, adding to inflation concerns at a time when global central banks are already leaning increasingly hawkish.
Locally, the macro backdrop did little to settle nerves. June-quarter GDP rose 0.4%, slightly ahead of expectations, with the better-than-expected print pushing Australian bond yields higher and strengthening expectations that the RBA will hike rates again. Coming on the heels of last week’s hot inflation data, the combination of stubborn inflation, firmer-than-expected growth and another leg higher in energy prices is keeping pressure firmly on rate-sensitive parts of the market
Despite the macro picture and GDP noise, we actually saw the index rally ~50pts from lows in the morning and through the day as banks saw some buying. The sell-off was particularly heavy across Materials and Technology, with growth and commodity names suffering as yields rise. Weakness was broad-based across gold, copper, lithium and uranium, while coal proved relatively resilient. Aside from that, with reporting season done and dusted, it was a relatively quiet session on the company front with stock-specific news providing little to no bearing on the broader index move.
- ASX 200: -88.30pts (-0.97%) to 8,978.40
- AUD/USD: 0.7144, flat
- Best sectors: Consumer Staples +0.81%, Communications +0.38%, Financials +0.25%
- Worst sectors: IT -3.35%, Materials -3.08%, REITs -1.23%
- BHP (ASX: BHP) -3.28% to $64.65, Fortescue (ASX: FMG) -4.60% to $16.61 and Rio Tinto (ASX: RIO) -1.48% to $174.88 joined the sell-off. The miners have had a strong run recently, but softer metals prices and the jump in global yields provided a pretty straightforward excuse to take some money off the table. BHP held in the Active Growth and Income Portfolios. FMG held in the Income Portfolio.
- Gold stocks were among the hardest hit after bullion taking its five-session decline to around 7%. Northern Star (ASX: NST) -4.69% to $22.58, Evolution Mining (ASX: EVN) -1.94% to $14.63, Genesis Minerals (ASX: GMD) -2.88% to $8.09 and Capricorn Metals (ASX: CMM) -4.96% to $15.89 were all sharply lower during the session. Evolution Mining held in the Active Growth Portfolio.
- Copper also lost some momentum, falling below US$14,200/t as the oil-driven inflation scare raised concerns around the global growth outlook. Sandfire (ASX: SFR) -3.03% to $22.37 was among the local casualties. Held in the Active Growth Portfolio.
- Lithium joined the broader resources sell-off despite its recent improvement. PLS Group (ASX: PLS) -5.29% to $5.19, Liontown (ASX: LTR) -4.98% to $1.24 and IGO (ASX: IGO) -2.58% to $8.32 were all lower, largely caught up in the broader de-risking across Resources. Held in the Active Growth Portfolio.
- Uranium was another weak pocket, following the move in global uranium equities which fell around 3.4% overnight. The sector has now effectively given back its late-August rally, with Boss Energy (ASX: BOE) -6.48% TO $1.37, Paladin Energy (ASX: PDN) -4.31% to $11.11 and NexGen Energy (ASX: NXG) -5.65% to $13.86 among the weaker local names during the session. Held in the Emerging Companies Portfolio.
- WiseTech Global (ASX: WTC) -5.16% to $37.65 was back in the headlines after almost doubling CEO Zubin Appoo’s maximum potential remuneration package; the stock has already fallen around 42% YTD. Held in the Active Growth Portfolio.
- Select Energy stocks performed well with Woodside (ASX: WDS) +1.16% to $33.08 and Santos (ASX: STO) +0.36% to $8.31 among the outperformers as the renewed escalation around the Strait of Hormuz putting geopolitical risk straight back into the oil price.
- IAG (ASX: IAG) +5.46% to $8.30 also bucked the market weakness, with insurance among the more defensive areas holding up through the session.
- Telstra (ASX: TLS) +1.94% to $4.72 jumped as Barrenjoey upgraded the stock from Neutral to Overweight, we wrote about the stock this morning here.
- Corporate Travel Management (ASX: CTD) still remains suspended from trading though delivered their FY26 result, returning to profit as underlying EBITDA rose 36%. ANZ earnings jumped 53% and Europe swung back into profit, while remediation is progressing and the company has now lodged its outstanding accounts ahead of a potential return to trading.
- Gold: fell slightly to around US$4,315 / -0.13%
- Brent crude: around US$95.40/bbl / +0.8%
- Iron Ore: US$97.70 / -1.6%
- S&P 500 E-mini futures: -3pts / -0.05%
- Dow E-mini futures: +27.00pts / +0.05%
- FTSE futures: -23.00pts / -0.36%
