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The ASX200 gave up early gains and finished lower today after investors were rattled by a fiery speech from US President Donald Trump at midday our time, dampening hopes for a quick resolution to the Iran conflict. The index traded up as much as ~0.4% earlier in the session before reversing sharply as oil prices surged and geopolitical risks again took centre stage.
Markets had initially been positioning for a more conciliatory tone from Washington, but Trump instead warned the US would strike Iran “extremely hard” in the coming weeks, a comment that quickly shifted sentiment. The reversal demonstrates just how sensitive markets remain to developments around the Strait of Hormuz and the broader Middle East conflict, with a clear risk-off tone prevailing as we head into the long weekend.
- ASX 200: 8,579 / −92pts / −1.06%
- AUD/USD: 0.6914 / flat / −0.20%
- Best sectors: Consumer Staples +1.32%, Utilities +0.92%, Financials -0.16%
- Worst sectors: IT −3.94%, Materials −2.77, Healthcare -2.14%
- Gold miners were up strong early, though failed to hold onto gains with Greatland Resources (ASX: GGP) −1.38%, Evolution Mining (ASX:EVN) -4.62% and Ramelius Resources (ASX:RMS) -5.15% falling.
- The aluminium space also outperformed with Alcoa (ASX: AAI) +4.72% rallying after the industrial metal climbed amid ongoing supply disruptions tied to the Middle East conflict.
- Technology stocks were hit hard again after the shift in sentiment, with Zip (ASX: ZIP) −8.16%, Life360 (ASX: 360) −5.89%, WiseTech Global (ASX: WTC) −4.30%, NextDC (ASX: NXT) −3.84% all trading sharply lower as investors rotated out of growth exposures.
- Energy stocks were mixed and recovered somewhat into the close after heavy morning selling, as the oil price swung +7% from its low – Woodside Energy (ASX: WDS) −0.46% dragged while Santos (ASX:STO) +1.38% and Karoon Energy (ASX: KAR) +6.53% staged a sharp turnaround late in the session.
- In corporate news, KMD Brands (ASX: KMD) -25.82% plummeted after resuming trading following the institutional component of its emergency capital raising, with the deeply discounted equity issue triggering heavy selling.
- Synlait Milk (ASX: SM1) +1.37% edged higher after completing the $NZ307 million sale of its North Island manufacturing and logistics assets to healthcare company Abbott.
- ASX Ltd (ASX: ASX) −1.09% traded modestly lower as after ASIC highlighted risk and compliance shortcomings at the exchange operator following a review into market infrastructure issues.
- Gold: was down -$US80/oz during our time zone, trading $US4,660/oz around our close
- Iron ore: Traded flat to $106.30/mt
- Asian Markets: China −0.8%, Hong Kong −0.1.5% and the Nikkei −2.9%
- Global Futures: S&P 500 E-Mini -1.29%, Dow E-Mini -1.11 %, FTSE -0.92%
