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The ASX finished lower today though the move was somewhat contained considering the escalation in rhetoric around the Middle East conflict. The local market entered the session digesting the breakdown of peace talks between the US and Iran in Pakistan over the weekend, with President Donald Trump announcing plans for a naval blockade of the Strait of Hormuz, causing a +7% spike in oil prices. Energy stocks were the clear outperformers, while technology names were weaker again, tracking US software stocks lower. The relatively modest ~0.4% decline on the day suggests investors are largely looking through the latest round of threats, continuing to focus on the broader trajectory of negotiations rather than the day-to-day noise. The headlines will undoubtedly continue to trickle through, though another key driver now comes into play tonight with the start of the US earnings season as the big banks kick things off.
- ASX 200: 8,926.00 / −34.61pts / −0.39%
- AUD/USD: 0.7043 / flat / −0.30%
- Best sectors: Energy +2.10%, Utilities +0.33%, Communications +0.19%
- Worst sectors: Consumer Disc. −1.07%, Industrials −1.13%, IT −1.80%
- Energy stocks were strong as oil jumped +8% to ~$105/boe at one point — Woodside Energy (ASX: WDS) +2.61%, Santos (ASX: STO) +1.65% and Whitehaven Coal (ASX: WHC) +2.59% all moved higher as traders priced in the risk of supply disruption through the Strait of Hormuz.
- The AI Disruption trade continued to dominate software names with WiseTech Global (ASX: WTC) −1.25%, Xero (ASX: XRO) −1.46% and Life360 (ASX: 360) −8.06% all declining.
- Bullion prices slipped as higher oil prices lifted inflation expectations — Northern Star (ASX: NST) −1.96%, Evolution Mining (ASX: EVN) −2.44% and Ora Banda Mining (ASX: OBM) −8.96% fell.
- The a2 Milk Company (ASX: A2M) −12.99% slumped after downgrading its FY26 outlook, citing supply chain disruptions in China that have created product shortages and forced the company to cut margin guidance.
- Pro Medicus (ASX: PME) +4.30% rose after signing a 5-year $36 million contract with Northwestern Medicine.
- EML Payments (ASX: EML) −35.65% was hit after cutting FY26 EBITDA guidance following delayed program launches and weaker-than-expected trading in its northern hemisphere operations.
- Monash IVF (ASX: MVF) +15.79% rallied strongly after receiving a revised 90c per share takeover proposal from a consortium led by Genesis Capital and Washington H Soul Pattinson.
- Telix Pharmaceuticals (ASX: TLX) +7.72% jumped after announcing a strategic collaboration with Regeneron Pharmaceuticals to co-develop cancer therapies with a US$40 million upfront payment to TLX and potential milestone payments of up to US$2.1bn.
- Brambles (ASX: BXB) −1.93% edged lower after the Federal Court partly upheld shareholder claims alleging misleading guidance disclosures.
- Insignia Financial (ASX: IFL) +0.42% ticked higher after shareholders approved the $3.8bn ($4.80 per share) takeover by CC Capital, with the company expected to delist from the ASX later this week subject to court approval.
- Oil: trading around $US94.93/barrel (WTI)
- Gold: trading down $US27 at $US4,722/oz around our close.
- Iron Ore: Up +1% to $105/mt.
- Asian Markets: China −0.10%, Hong Kong −1.2% and the Nikkei −0.4%.
- Global Futures: S&P 500 E-Mini −0.58%, Dow E-Mini −0.53%, FTSE −0.51%.
- US Earnings Tonight: Goldman Sachs (GS US).
