ASX edges down on doubts over second round of US-Iran peace talks
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More news: Australian shares opened marginally lower, mirroring a softer lead from Wall Street as doubts over a second round of peace talks between the US and Iran dampened investor sentiment.
The benchmark ASX 200 was down by 16.6 points, or 0.19%, to 8,936 at 10:51am AEST. Seven of the 11 sectoral indices opened in the red.
Consumer staples (+0.38%) was the strongest performing sector at the open, supported by a lift in Woolworths (+0.33%), Endeavour Group (+0.90%), Bega Cheese (+0.42%) and Graincorp (+1.27%).
Vulcan Energy (+6.32%), Silex Systems (+3.48%), Zip (+3.38%) and DroneShield (+3.32%) were among the best performing stocks across the ASX 200 in early trade.
Elsewhere, energy (-0.68%) was the weakest performing sector for a second consecutive session, weighed down by Woodside (-1.13%), Santos (-1.06%), Yancoal (-1.67%) and Ampol (0.86%).
Hub24 (-7%) was the worst performing stock across the ASX 200 despite posting a 9% quarterly increase in platform inflows.
Lynas Rare Earths (-3.28%) fell despite reporting a 215% quarterly increase in gross sales revenue for FY26.
Web Travel (-3.64%), Lendlease Group (-2.66%), Mirvac (-2.64%) and Predictive Discovery (-2.36%) were also among the worst performing stocks across the ASX 200.
On the data front, the Australian Bureau of Statistics will release government finance statistics and taxation revenue for 2024-25 at 11:30am AEST.
Australian shares to edge higher despite Wall St dip as US-Iran ceasefire hangs by thread
The news: The Australian sharemarket is set to open higher despite a softer lead from Wall Street, after the three major indices eased on Monday after posting a third straight week of gains as renewed US-Iran tensions cast doubt over the durability of a two-week ceasefire.
The numbers: Updated at 7:47am AEST:
- ASX futures: up 25 points to 8,969 points
- Wall Street: Dow Jones down 0.01%, S&P 500 down 0.24%, Nasdaq down 0.26%
- Europe: FTSE 100 down 0.55%, CAC 40 down 1.12%, DAX down 1.15%
- Spot gold: down 0.26% to USD4,820.99 per ounce
- Oil prices: Brent up 3.79% to USD93.80/barrel, US WTI up 4.35% to USD80.20/bbl
- AUD: up 0.07% at 71.75 US cents
- Bitcoin: up 2.81% to USD75,948
The context: All three major US indices closed lower on Monday, with the Nasdaq down 0.3%, S&P 500 off 0.2% and the Dow finishing flat. The decline snapped a 13-session winning streak for the Nasdaq, its longest since 1992, according to WSJ.
The latest tension between the US and Iran escalated after Iran said the Strait of Hormuz was “completely open” on Saturday (AEST), before reversing course over the weekend following the US seizure of an Iranian-flagged vessel in the Gulf of Oman.
Pakistan is now preparing to host a second round of US-Iran talks, although Iran has not confirmed its participation, despite Trump saying a US delegation is on its way, raising uncertainty over the prospects for a breakthrough.
Trump also told Bloomberg that he’s “highly unlikely” to extend the two-week ceasefire, which expires on Tuesday (ET), and said the Strait of Hormuz would remain blockaded until an agreement is reached.
In equities, Netflix fell 2.55% lower and is down about 12% since announcing its quarterly results and the departure of co-founder Reed Hastings last week, according to Reuters.
Locally, the Australian Bureau of Statistics will release government finance statistics and taxation revenue for 2024-25 at 11:30am AEST.
