A solid session locally, with the ASX 200 gaining 0.52% despite US futures remaining slightly lower. The move had the hallmarks of futures-led buying in Australia, with the SPI strengthening through the afternoon and broad gains across consumer discretionary, communications and healthcare, while the major banks also provided support.
The index reversed earlier weakness to finish near a six-week high, even as materials remained under pressure from softer copper and gold prices. Brent crude extended Monday’s sharp decline as markets put more weight on potential US-Iran talks, although Australian energy stocks proved relatively resilient despite the weaker oil price.
- ASX 200: +45.94pts / +0.52% to 8,939.90
- AUD/USD: 0.6965 / -0.39%
- Best sectors: Consumer Discretionary +2.59%, Communications +2.53%, Healthcare +2.05%
- Worst sectors: Materials -1.44%, Utilities +0.15%, Industrials +0.45%
- WEB Travel Group (WEB) +17.08% to $3.29 was the standout performer after announcing plans to buy back up to $90m of shares and forecasting first-half underlying EBITDA of $80m–$86m. The guidance was a material positive given the uncertain travel backdrop.
- Viva Energy Group (VEA) +8.61% to $2.65 surged after forecasting first-half earnings of $770m–$780m, more than double the $305m delivered a year earlier. The Iran conflict drove a sharp increase in regional refining margins, providing a significant boost to the company’s refining operations.
- WiseTech Global (WTC) +8.06% to $34.71 rebounded strongly as investors returned to heavily sold-down technology stocks despite the broader debate around AI disruption remaining unresolved.
- Guzman y Gomez (GYG) +7.88% to $23.68, Temple & Webster Group (TPW) +7.17% to $5.38, SEEK (SEK) +6.84% to $14.06 and Lovisa Holdings (LOV) +6.73% to $22.84 led the rally across consumer discretionary and growth stocks.
- Light & Wonder (LNW) +6.53% to $116.86, CAR Group (CAR) +5.52% to $26.38 and IDP Education (IEL) +5.21% to $2.22 also benefited from the broader rotation back into beaten-down growth exposures.
- Flight Centre (FLT) +5.07% and Eagers Automotive (APE) +4.63% joined the consumer rally, while REA Group (REA) +4.35% continued its recent recovery.
- Cochlear (COH) +4.70% and ResMed (RMD) +3.39% helped drive the healthcare sector higher, while CSL Ltd (CSL) +2.69% to $119.52 recovered some of its recent weakness.
- The major banks provided steady index support. Commonwealth Bank (CBA) +1.54% to $178.78, Westpac (WBC) +0.90% to $38.02, ANZ Group (ANZ) +0.89% to $37.22 and National Australia Bank (NAB) +0.66% to $41.21 all finished higher.
- Harvey Norman (HVN) +2.33% gained despite being fined $35m by the Federal Court over a misleading advertising campaign involving Latitude Finance. Harvey Norman had already recognised $16.2m of accruals but expects to record a further expense in FY26.
- IGO Ltd (IGO) +3.56% rallied despite underlying FY26 EBITDA coming in 10% below consensus as losses at the Kwinana lithium hydroxide refinery weighed on earnings. Net cash improved to $386.5m and underlying free cash flow almost doubled to $69.5m.
- Iluka Resources (ILU) +5.15% advanced despite warning that production from Balranald would be below previous expectations following a slower-than-planned commissioning process.
- Woodside Energy (WDS) +2.77% to $32.29, Santos (STO) +1.17% and Ampol (ALD) +2.26% rose despite the further decline in oil prices, suggesting investors remained reluctant to materially reduce energy exposure while the Middle East situation remains unresolved.
- Materials were the clear weak point. BHP Group (BHP) -1.21% to $59.37, Rio Tinto (RIO) -2.48% to $159.53 and Fortescue (FMG) -0.53% to $18.70 declined as copper and gold prices softened.
- Gold stocks also struggled, with Newmont Corporation (NEM) -2.92% to $132.78, Evolution Mining (EVN) -1.82%, Westgold Resources (WGX) -1.84% and Bellevue Gold (BGL) -2.54% finishing lower.
- DroneShield (DRO) -13.22% to $1.81 was the weakest stock in the ASX 200 after warning that first-half gross margins would fall to around 60% from 65% a year earlier.
- Silex Systems (SLX) -8.35% to $4.50, Megaport (MP1) -5.85% to $17.85, PLS Group (PLS) -4.94% to $4.04 and Paladin Energy (PDN) -4.39% to $9.15 were also heavily sold.
- Whitehaven Coal (WHC) -4.55% to $7.13 declined despite finishing FY26 at the upper end of production guidance, with managed run-of-mine coal output of 40.3mt and sales of 32.7mt.
- Sandfire Resources (SFR) -4.21% to $18.43 weakened alongside softer copper prices and a broker downgrade, while NEXTDC (NXT) -3.43% to $13.23 gave back some of its recent gains.
- Brent crude: -1.3% to approximately US$87.19/bbl, extending Monday’s 8.7% decline as reports of US-Iran talks reduced the immediate geopolitical risk premium.
- Gold: -0.7% to approximately US$4,046/oz, with investors awaiting the outcome of a finely balanced Federal Reserve interest-rate decision.
- Copper: -0.6% to approximately US$6.34/lb, contributing to weakness across the diversified and copper-focused miners.
- Asian markets weaker: China -1.2%, Hong Kong -0.2% and Japan -4.6%
- S&P 500 E-mini futures: -25 points / -0.34%
- Dow E-mini futures: +6 points / +0.01%
- US companies we own reporting this week; Ashland (ASH US), Peabody Energy (BTU US), Chipotle Mexican Grill (CMG US), IREN (IREN US), Microsoft (MSFT US) and UBS Group (UBS US).
