The Australian sharemarket is expected to open slightly lower on Wednesday, with futures at 4.54am AEST pointing to a 6-point, or 0.1%, decline at the opening bell.
Investors will be watching another busy session of corporate earnings alongside the latest Wage Price Index data, while Reserve Bank of Australia (RBA) deputy governor Andrew Hauser is due to speak at a summit in Brisbane.
Companies reporting today include Evolution Mining, Breville, BWP Trust, Mirvac, Fletcher Building, Santos, The Lottery Corporation and Whitehaven Coal.
ASX finishes flat as BHP and CSL offset broader weakness
The S&P/ASX 200 finished Tuesday down just 3.2 points at 9,070, with 6 of the 11 industry sectors closing in the red, following a 0.5% decline on Monday.
Strong gains from heavyweights BHP and CSL helped offset falls across the banks, consumer stocks and gold miners as rising energy prices added to inflation concerns and hopes faded for a near-term resolution to the US-Iran conflict.
BHP jumped 2.7% after reporting a 9% increase in full-year profit to US$9.8 billion as revenue rose 15% to US$58.8 billion, supported by record copper prices.
The miner declared a final dividend of US$0.99 per share, taking the full-year payout to US$1.72 per share from US$1.10 a year earlier. Its total US$8.7 billion dividend distribution was its largest in 4 years.
Ausgold surged 24.4% after agreeing to a $776 million takeover by Canada’s OceanaGold.
Elsewhere in resources, Rio Tinto slipped 0.6%, Fortescue fell 0.4%, Northern Star lost 3.1%, Evolution Mining declined 1.7% and South32 dropped 2%.
Healthcare stocks surge
CSL was the standout performer, jumping 17.3% despite reporting a US$2.6 billion statutory net loss following restructuring costs and impairments.
Revenue slipped 1% to US$15.8 billion, ahead of the US$15.4 billion analyst estimate, while CSL forecast underlying net profit growth of about 5% at constant currency in fiscal 2027 as it continues its restructuring.
The result included US$800 million in one-off pretax restructuring costs and US$7.1 billion of pretax impairments.
Cochlear gained 7.6% after reporting underlying full-year net profit of $322 million, down 22% year-on-year but at the upper end of guidance. It forecast profit of between $330 million and $350 million for the current financial year.
Pro Medicus climbed 11.9% after sales rose 23% and underlying net profit increased 24% to $144.7 million.
Reliance Worldwide also surged, gaining 24.7% to $4.50 after Brookfield Asset Management (TSX:BAM, NYSE:BAM) proposed an all-cash takeover valuing the plumbing supplies company at about $4.1 billion, or $4.75 per share.
Energy advances as banks and consumer stocks fall
Energy stocks strengthened as oil prices extended their gains amid continuing uncertainty around the US-Iran conflict and reports of another vessel attack in the Strait of Hormuz.
Woodside rose 0.9%, Santos gained 0.8%, Ampol added 1.1% and Viva Energy climbed 1.8%.
Financial stocks were weaker, with all 4 major banks closing lower. Commonwealth Bank fell 1.4%, NAB dropped 0.7%, Westpac lost 1.2% and ANZ slipped 0.5%.
Consumer-facing stocks also came under pressure. Wesfarmers fell 0.7%, Woolworths declined 1.8%, Coles dropped 1.2% and Endeavour Group lost 2.6%.
Higher fuel prices weighed on airlines, with Qantas down 2.4% and Virgin Australia falling 1.1%.
Wall Street falls as tech stocks retreat
US sharemarkets closed lower as rising oil prices and elevated government bond yields weighed on heavyweight technology and growth stocks.
The Philadelphia Semiconductor Index fell 5%, with Sandisk, Western Digital and Micron Technology among the hardest hit. Nvidia declined 2.3% and Meta Platforms dropped 4.5%.
The S&P 500 Information Technology sector fell 1.9%, making it the biggest drag on the broader market, while the energy sector climbed 1.8% and approached a record high.
Software stocks performed better, with Microsoft, Salesforce and Intuit among the stronger performers.
Home Depot slipped 0.1% despite beating second-quarter sales estimates.
The Dow Jones finished 0.2% lower, the S&P 500 fell 0.7% and the Nasdaq declined 1.3%.
US government bond yields were mixed. The 30-year yield reached levels not seen since 2007, while the 10-year Treasury yield fell 2 basis points to 4.70% and the 2-year yield eased 1 basis point to 4.17%.
European markets retreat
European equities fell to their lowest level in more than 2 weeks as investors assessed higher bond yields, renewed inflation concerns and further geopolitical uncertainty.
Technology stocks were among the biggest losers, with the sector falling 2.5%. Infineon dropped 7.6% and Aixtron lost 8.8%.
Energy stocks gained 0.4% as oil prices strengthened.
Among individual stocks, H&M rose 4.1% after an executive disclosed the purchase of 8,000 shares, while Huber+Suhner fell 11.4% following weaker-than-expected core profit and communications orders.
The FTSEurofirst 300 index closed 0.7% lower, while the UK FTSE 100 edged 0.1% higher.
Currencies favour US dollar
Major currencies weakened against the US dollar as investors moved toward the greenback during a risk-off session.
- The euro was marginally lower at US$1.1572.
- The Japanese yen eased 0.1% to ¥159.65 per US dollar.
- The Australian dollar fell 0.3% to US$0.7082.
Oil rises as base metals and gold retreat
Oil prices advanced for a third consecutive session as Iran signalled it would adopt a more offensive stance and said the Strait of Hormuz would remain closed, while Washington ruled out extending a ceasefire.
- Brent crude futures settled 0.2% higher at US$91.02 a barrel.
Base metals moved lower following weaker economic data from China.
- Copper futures fell 1.8% from 6-month highs, while aluminium dropped 2.9%.
- Gold futures declined 1.2% to US$4,421 an ounce as higher energy prices added to inflation concerns.
- Iron ore moved in the opposite direction, with futures gaining 0.3% to US$95.28 a tonne as weak Chinese economic data increased expectations for additional government stimulus.