- What Matters Today in Markets: Listen here each morning or find all Market Matters Podcasts on Spotify.
- FY26 Reporting Calendar in PDF Format: Here and in Excel Format: Here
It was a slow and painful session today with the ASX sliding hour by hour through to the close in a broad-based sell-off, with 10 of 11 sectors lower, as yesterday’s hotter-than-expected CPI print drove bond yields higher and sharply increased expectations for another RBA rate hike. Rate-sensitive areas bore the brunt, with Staples, Technology, Real Estate and Consumer Discretionary among the weakest sectors, while persistent weakness across the banks and a pullback in Resources added to the decline.
A strong Nvidia result over in the U.S failed to translate into strength locally, with Australian Technology stocks extending their two-day fall to around 5.6%. Markets are now pricing around a 50:50 chance of a September RBA hike and effectively a full hike by November, putting pressure on equities.
- ASX 200: -89.60pts (-0.98%) to 9,038.20
- AUD/USD: 0.7184, +0.20%
- Best sectors: Healthcare +0.23%, Industrials +0.02%, Energy -0.19%
- Worst sectors: Consumer Discretionary -3.18%, IT -2.38%, Consumer Staples -1.43%
- Technology -2.38% remained the problem child, with WiseTech (WTC) -3.28% to $39.55, NextDC (NXT) -1.59% to $13.58 and Xero (XRO) -2.60% to $81.73 all lower. Higher bond yields are doing no favours for growth valuations, while stock-specific disappointments are adding another layer of pressure.
- Consumer Staples -1.43% gave back some of its recent rally, with Woolworths (WOW) -1.57% to $39.55 and Coles (COL) -1.21% to $23.74 both lower after strong reporting-season moves earlier in the week.
- Gold bounced back above US$4,600/oz, although local gold equities were generally weaker as investors took some money off the table after a very strong run, with Newmont (NEM) -1.87% to $182.27, Evolution (EVN) -1.38% to $15.68 and Regis Resources (RRL) -1.51% to $8.50.
- Ramsay Health Care (RHC) +13.72% to $50.06 was comfortably the standout, with a cleaner-than-expected FY26 result and a much stronger Australian performance with the Sante separation still moving toward a November shareholder vote.
- Qantas (QAN) +4.77% to $9.66 was also well supported after a broadly solid result. Higher fuel costs are clearly a headwind, but demand remains resilient, particularly across premium international and domestic leisure travel.
- Mineral Resources (MIN) -2.27% to $65.37 reversed earlier gains despite reinstating its dividend and posting a record result.
- South32 (S32) +1.36% to $5.21 edged higher after a result that was broadly in line with strong earnings and a solid dividend were fine, though FY27 capex and cost guidance came in a little heavier than expected, taking some of the shine off the result.
- Wesfarmers (WES) -4.58% to $79.46 fell despite solid contributions from Bunnings and Kmart with the issue being the outlook; early FY27 trading at Kmart and Officeworks looking softer than expected.
- Generation Development Group (GDG) -15.36% to $3.25 was hit hard despite a pretty decent FY26 result on paper as revenue, profit and inflows all beat expectations, but the capex outlook weighed on sentiment.
- Magellan Financial Group (MFG) -14.03% to $9.50 was another big reporting-season loser with the asset manager failing to meet fairly modest expectations
- Sigma Healthcare (SIG) -7.75% to $2.62 slipped despite strong underlying growth and ongoing momentum across the Chemist Warehouse network, with the main concern being executing Chemist Warehouse synergies in the short-term.
- Nine Entertainment (NEC) -6.70% to $0.975 gave back yesterday’s gains, with the market continuing to weigh the improving Outdoor and streaming businesses against a still-challenging traditional TV backdrop.
- Gold: firmed around US$4,595 / +0.1%
- Brent crude: around US$86.50/bbl / -1.6%
- Iron Ore: US$97.80 / -0.3%
- S&P 500 E-mini futures: +28.00pts / +0.4%
- Dow E-mini futures: +105.00pts / +0.2%
- FTSE futures: +3.00pts / +0.05%
