Australia shares flat as escalating Middle East conflict weighs on sentiment
Australian shares were nearly flat in early trade on Wednesday, as investors turned cautious amid escalating tensions in the Middle East, with the Iran-Israel conflict entering its sixth day.
The S&P/ASX 200 index edged down 0.1% to 8,530.60, as of 0032 GMT.
The benchmark ended 0.1% lower on Tuesday.
The continuing exchange of airstrikes between Iran and Israel kept investors on edge, with Reuters reporting that the US military was deploying more fighter aircraft to the conflicted region.
Back in Sydney, energy stocks rose 0.6%, tracking a more than 4% jump in oil prices on Tuesday as the escalating Israel-Iran conflict stoked fears of supply disruptions. Sector giant Woodside Energy rose 0.8% and smaller peer Santos gained 0.8%.
Export-reliant healthcare stocks jumped 0.5%, buoyed by a higher US dollar. Biotech giant CSL advanced 1.5%.
Among other sectors trading in green, IT stocks gained 1.2%, with WiseTech Global rising 1.6% and NEXTDC falling 1% after the latter inked a debt facility of A$2.2 billion ($1.43 billion).
Bucking the trend, heavyweight miners lost 1.1%, with the sub-index hitting its lowest level since May 9 as copper prices fell on the Middle East instability.
Energy stocks lift Australian shares; Santos jumps on $18.7bn takeover bid
Mining giant BHP Group fell 1.2% and iron ore miner Rio Tinto shed 0.5%.
Financials traded largely flat, with the country's 'Big Four' banks losing between 0.1% and 1%. Gold stocks lost 0.8%, as investors booked profits.
Gold miner Northern Star Resources fell 1.3%. In New Zealand, the benchmark S&P/NZX 50 index was largely unchanged at 12,639.95.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
17 minutes ago
- Business Recorder
Wheat up 2-3 cents, corn down 1-up 1, soy down 1-2
CHICAGO: The following are U.S. expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Wednesday. Wheat - Up 2 to 3 cents per bushel CBOT wheat was buoyed by a slower than average U.S. winter wheat harvest, which reached 10% completion compared with a five-year average of 16%. Farm office FranceAgriMer has increased its forecast for French soft wheat exports within and outside the European Union in 2024/25, but the EU's biggest grain producer is still on course for its worst wheat export campaign this century after a rain-hit harvest. One of Russia's largest grain-producing regions, Krasnodar, has declared a state of agricultural emergency in eight drought-hit municipalities. CBOT July soft red winter wheat was last 3 cents to $5.52 per bushel. K.C. July hard red winter wheat was last up 3-3/4 cents at $5.51-1/2 per bushel, and Minneapolis July spring wheat rose 4-1/2 cents to $6.35-1/2 per bushel. Jordan gets 6 participants in 120,000 tons wheat tender Corn - Down 1 cent to up 1 cent per bushel CBOT corn traded on both sides unchanged, though it received some support from uncertainty over crop weather in the U.S. Midwest. CBOT July corn fell 1/2 cent to $4.31 per bushel. Soybeans - Down 1 to 2 cents per bushel CBOT soybeans eased on Wednesday as traders booked profits after a three-day price rally driven by strength in soyoil and the broader energy market, with continuing tariff uncertainty also pressuring prices. Support for agricultural commodities such as soybeans and corn has been underpinned by rising energy prices, fueled by escalating tensions between Israel and Iran. Higher crude oil prices improve the competitiveness of soyoil and corn as biofuel feedstocks. July soybeans were last down 1-3/4 cents to $10.72-1/4 per bushel.
Business Recorder
21 minutes ago
- Business Recorder
Most Gulf markets in red as Israel-Iran conflict escalates
Most stock markets in the Gulf ended lower on Wednesday with investors exercising restraint due to fighting between Iran and Israel that entered a sixth day, sparking fears of potential regional instability. Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender on Wednesday, as Iranians jammed the highways out of Tehran fleeing from intensified Israeli airstrikes. Saudi Arabia's benchmark index declined 1.2%, weighed down by a 3.3% slide in ACWA Power Company and a 2% drop in Saudi Arabian Mining Company. Among other losers, Prince Waleed bin Talal-backed airline Flynas Company closed 3.4% lower in debut trade. Elsewhere, oil giant Saudi Aramco eased 0.3%. Additionally, investor uncertainty surrounding today's U.S. Federal Reserve meeting is contributing to the cautious mood, with most market participants expecting the central bank to hold interest rates steady, said Joseph Dahrieh, managing principal at Tickmill. Dubai's main share index finished 1.2% lower, with blue-chip developer Emaar Properties losing 1.2%. Most Gulf markets in red over Israel-Iran conflict worries In Abu Dhabi, the index was down 0.4%. Oil prices steadied, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct U.S. involvement. The Qatari index lost 0.6%, with Qatar Gas Transport Nakilat falling 3.8%. Outside the Gulf, Egypt's blue-chip index added 0.4%, helped by a 4.1% jump in Fawry for Banking Technology and Electronic Payment. ------------------------------------------ SAUDI ARABIA lost 1.2% to 10,591 Abu Dhabi down 0.4% to 9,496 Dubai dropped 1.2% to 5,306 QATAR fell 0.6% to 10,348 EGYPT rose 0.4% to 30,839 BAHRAIN declined 1.1% to 1,889 OMAN was flat at 4,520 KUWAIT retreated 1.6% to 8,544 ------------------------------------------
Business Recorder
an hour ago
- Business Recorder
Wall Street edged higher ahead of Fed's interest rate verdict
Wall Street's main indexes ticked up on Wednesday, as investors awaited the Federal Reserve's monetary policy decision, while the Israel-Iran attacks entered the sixth day. Investors will closely monitor Fed Chair Jerome Powell's comments to gauge how he plans to combat the risk of rising prices, which remains a dominant concern for the central bank. The Fed is expected to leave rates unchanged at its meeting, scheduled later in the day. 'We're still at the beginning stages of feeling that real income shock from higher tariffs in the United States, and the uncertainty effect builds up over time,' said Simon Dangoor, head of fixed income macro strategies at Goldman Sachs Asset Management. 'So I think the next couple of months of data is going to be really key about where we go from here.' Ahead of the monetary policy decision, money market moves show traders are pricing in about 46 basis points of rate cuts by the end of 2025, with a 55% chance of a 25-bps rate cut in September, according to CME Group's FedWatch tool. Wall St climbs as oil prices ease, Fed meeting in focus Following strong monthly equity trading in May, the benchmark S&P 500 index and the Nasdaq were close to record peaks before the ongoing conflict in the Middle East made investors risk averse. The S&P 500 index stood 2.5% below its record level, and the tech-heavy Nasdaq remained 3.3% lower. Investors have been anxious over the possibility of a more direct U.S. military involvement in the Israel-Iran aerial war. A source familiar with internal discussions said U.S. President Donald Trump and his team were considering a number of options, which included joining Israel in strikes against Iranian nuclear sites. At 09:52 a.m. ET, the Dow Jones Industrial Average rose 73.93 points, or 0.18%, to 42,289.73, the S&P 500 gained 13.90 points, or 0.23%, to 5,996.62 and the Nasdaq Composite gained 49.31 points, or 0.26%, to 19,571.01. Ten of the 11 major S&P 500 sub-sectors rose. Energy and consumer discretionary stocks gained 0.6% each, while healthcare stocks declined 0.4%. Tesla gained 1.8%. Shares of networking and custom AI chipmaker Marvell Technology hit a three-month high and were last up 8.7%. Shares of stablecoin issuer Circle Internet rose 6.2% after the U.S. Senate passed a bill to create a regulatory framework for dollar-pegged cryptocurrency tokens known as stablecoins. Scholar Rock rose 17.4% after the drugmaker said its experimental drug helped overweight patients preserve lean mass in a mid-stage trial when used in combination with Eli Lilly's weight-loss treatment. Steelmaker Nucor rose 4.9% following a second-quarter profit forecast that came above analysts' estimates. Initial jobless claims data on Wednesday showed the number of Americans filing new applications for unemployment benefits fell last week, but stayed at levels consistent with a further loss of labor market momentum in June. Advancing issues outnumbered decliners by a 1.63-to-1 ratio on the NYSE and by a 1.3-to-1 ratio on the Nasdaq. The S&P 500 posted four new 52-week highs and six new lows, while the Nasdaq Composite recorded 31 new highs and 53 new lows.
