The ASX 200 snapped a three-day winning streak today, retreating from yesterday’s five-month high as investors reduced risk following a sharp sell-off in the US. Materials and consumer stocks under most pressure, although strength across technology and selected energy names helped cushion the decline.
The US Federal Reserve left interest rates unchanged, but the bond market reacted poorly to concerns that policy may not be tight enough to contain inflation. Long-dated US Treasury yields climbed sharply, while the S&P 500 fell 1.5% and the Dow lost 2.2%. Locally, gold and resources were hit, while technology was the standout after several heavily sold-down names rebounded.
- ASX 200: -70.92pts / -0.78% to 8,967.70
- AUD/USD: 0.6948 / -0.12%
- Best sectors: Information Technology +0.91%, Energy +0.32%, Financials -0.37%
- Worst sectors: Materials -1.59%, Consumer Discretionary -1.39%, REITs -0.98%
- Domino’s Pizza Enterprises (DMP) +9.08% to $19.59 was the standout performer after FY26 underlying profit guidance of $118m–$122m came in slightly ahead of expectations. Free cash flow improved to around $164m and leverage fell to 1.9x, although the company also booked almost $300m of largely non-cash write-downs and flagged up to 60 store closures.
- WiseTech Global (WTC) +6.67% to $37.89 led technology higher, rebounding strongly following recent weakness.
- Mineral Resources (MIN) +3.90% to $57.79 continued to recover after its strong quarterly update, while PLS Group (PLS) +2.68% to $4.21 gained after exceeding FY26 production guidance and forecasting higher output in FY27.
- PLS Group (PLS) +2.68% to $4.21 reported record quarterly sales of 249.9kt and revenue of $743m. FY27 production guidance of 1.03–1.10mt was broadly in line with expectations, although costs are expected to rise modestly as the Ngungaju plant restarts.
- Guzman y Gomez (GYG) +2.64% to $25.25, Viva Energy Group (VEA) +2.20% to $2.79, News Corp (NWS) +2.19% to $46.63 and Neuren Pharmaceuticals (NEU) +2.04% to $17.48 were also among the stronger performers.
- Rio Tinto (RIO) +1.83% to $168.41 outperformed the broader materials sector after Goldman Sachs upgraded the miner to Buy.
- Xero (XRO) +1.43% to $71.48 and TechnologyOne (TNE) +1.11% joined the rebound in technology, which was the only sector to finish materially higher.
- The banks were mixed. National Australia Bank (NAB) +0.85% to $41.55 and Westpac (WBC) +0.55% to $38.15 advanced, while Commonwealth Bank (CBA) -0.23% to $178.25 and ANZ Group (ANZ) -0.58% to $37.51 declined.
- NAB said total Australian home-loan applications fell 15% in the June quarter, although business and private-bank lending balances increased 4%. UBS continues to prefer NAB and Westpac among the major banks, while retaining a Sell recommendation on CBA. They upgraded WBC to a buy today.
- BHP Group (BHP) -1.71% to $59.15 weighed on the index as materials came under pressure, while Fortescue (FMG) -1.15% to $18.86 also declined.
- Gold miners were heavily sold despite bullion holding near US$4,050/oz. Genesis Minerals (GMD) -5.68% to $5.65, Resolute Mining (RSG) -7.22% to $0.90, Predictive Discovery (PDI) -5.93% to $0.64 and Catalyst Metals (CYL) -5.66% to $5.50 all fell sharply.
- Newmont Corporation (NEM) -1.79% to $130.45, Evolution Mining (EVN) -3.07%, Northern Star Resources (NST) -3.29% and Westgold Resources (WGX) -3.79% also declined as investors reduced exposure to non-yielding assets amid higher long-term bond yields.
- Liontown Resources (LTR) -10.86% to $0.99 was the weakest stock in the ASX 200, while IperionX (IPX) -8.41% to $2.83 also fell sharply after its quarterly update disappointed investors despite higher titanium-powder production.
- Champion Iron (CIA) -8.82% to $3.62, West African Resources (WAF) -6.57% to $2.70, Perpetual (PPT) -5.61% to $18.66 and Temple & Webster Group (TPW) -5.83% to $5.49 were among the other major laggards.
- Consumer stocks gave back part of Wednesday’s strong rally. Wesfarmers (WES) -1.53% to $89.22 declined after RBC initiated coverage with an Underperform rating and a $73 target price, arguing its premium valuation already reflects the strength of Bunnings and Kmart.
- Harvey Norman (HVN) -1.79%, JB Hi-Fi (JBH) -1.58% and Lovisa Holdings (LOV) -2.76% were also weaker.
- Woodside Energy (WDS) +0.49% to $32.90 and Santos (STO) +0.77% to $7.83 gained despite a pullback in crude prices, while Ampol (ALD) +0.23% to $39.49 remained supported by improved Lytton refinery margins.
- Brent crude: +1.8% to US$92.67/bbl, as the latest US strikes focused on Iranian military targets.
- Gold: around US$4,034/oz, with higher long-term bond yields and inflation concerns weighing again.
- Asian markets: South Korea stabilised after its recent sharp sell-off.
- China down –0.6%, Japan off -0.8% while Hong Kong was flat.
- S&P 500 E-mini futures: +16.25 points / +0.22%
- Dow E-mini futures: +38 points / +0.07%
- 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).
