FINWIRES · TerminalLIVE
FINWIRES

Australian Shares Fall; ResMed to Sell MatrixCare Business to Frazier Healthcare Partners for $490 Million

By

Australian shares declined on Wednesday as investors reacted to a surge in oil prices on the back of renewed hostilities between the US and Iran in the Middle East.

The S&P/ASX 200 Index fell by 0.21%, or 18.80 points, to close at 8,785.10.

Brent crude oil futures rose over 3% to trade around $76 per barrel as the US attacked targets in Iran after Iran targeted shipping in the Strait of Hormuz. The US also ⁠moved to withdraw a sanctions waiver allowing Iran to sell oil on the global market, which Iran said breached the memorandum of understanding to ​end the conflict.

On the domestic front, the seasonally adjusted estimate for the number of dwellings approved in Australia fell 1.1% month-over-month in May to 17,019 after edging 0.2% lower in April, the Australian Bureau of Statistics said.

The number of dwellings commenced in Australia fell 11.2% to 48,012 in the March quarter from the previous quarter, but rose 0.2% from the same period a year earlier.

In company news, ResMed (ASX:RMD) agreed to sell its MatrixCare business to healthcare-focused private equity firm Frazier Healthcare Partners in a $490 million all-cash deal.

The US Forest Service has issued the final record of decision for South32 (ASX:S32) unit South32 Hermosa's proposed $2.16 billion Hermosa critical mineral project in Arizona's Santa Cruz County, marking a major regulatory milestone for the planned mining and processing operation.

Lastly, Adairs (ASX:ADH) expects fiscal year 2026 group underlying earnings before interest and tax (EBIT) in the range of AU$53.5 million to AU$55.5 million, down 1.3% at the midpoint from fiscal year 2025. The company said it expects to recognize a non-cash impairment of the Focus on Furniture goodwill and brand intangible in the range of AU$62 million to AU$68 million to be excluded from underlying earnings.

Related Articles

Asia Markets

China Shares Open Higher; Markets Still Cautious Ahead of June Inflation Report

Chinese shares opened higher on Wednesday, clawing back gains from the previous day's losses, but the market remained cautious ahead of the release of China's inflation data.The Shanghai Composite Index, the main gauge of Chinese stocks, opened 0.2% higher to 3,996.81. The Shenzhen Component Index rose 0.3% to 15,269.82.Investors are awaiting the Thursday release of China's consumer price index and producer price inflation reports for June. Analysts expect June inflation to cool to 1.1% year over year from the 1.2% recorded in the previous month, according to a consensus estimate from Trading Economics.Meanwhile, the Chinese yuan is moving towards a portfolio integration phase, with institutions increasingly relying on the currency for trade, investment, financing and reserve management. According to a survey of 120 institutions by HSBC, 66% of respondents said they were allocating to RMB assets for diversification benefits.

Shanghai Composite^SZSE
Asia Markets

ASX Preview: Australian Shares to Fall on Rising Iran-US Tensions; Ramelius Resources Posts Lower June Quarter Gold Production

Australian shares are poised to fall on Wednesday after oil prices surged following escalating tensions in the Middle East, with Iran attacking three commercial vessels in the Strait of Hormuz and the US revoking a license allowing the sale of Iranian crude before launching further strikes against Tehran.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.5%, 1.2%, and 0.3%, respectively.In the macroeconomy, Australia's building approvals and building activity reports are due at 11:30 am Sydney time.In corporate news, Ramelius Resources (ASX:RMS) said June quarter gold production was 53,466 ounces, with fiscal 2026 production of 192,182 ounces within its guidance range of 185,000 to 205,000 ounces.Predictive Discovery (ASX:PDI) said its Kiniero gold mine in Guinea milled 2.2 million tonnes of ore in the June quarter at an average of 0.86 grams per tonne grade of gold to pour 54,252 ounces of gold.Australia's benchmark index fell 0.3% or 27.1 points to close at 8,803.90 on Tuesday.

ASX 200ASX:PDIASX:RMS
Asia Markets

Update: US Equity Indexes Drop as Mega-Cap Chipmakers Slump, Treasury Revokes Iran Oil General License

(Updates with index/price moves, macroeconomic, and company/political news.)US equity indexes slumped as chipmakers led the technology sector lower and the Treasury Department revoked a June 21 license authorizing Iran to sell its crude oil in international markets.The Nasdaq Composite dropped 1.2% to 25,818.69, the S&P 500 fell 0.5% to 7,503.85, and the Dow Jones Industrial Average retreated 0.3% to 52,925.15 on Tuesday. Technology, industrials, and materials were the steepest decliners at the close. In addition to energy, the top gainer, other sectors in the lead included real estate, healthcare, and consumer staples.Among stocks with market capitalization exceeding $200 billion each, 14 out of the bottom 20 names were technology firms, according to data compiled by Finviz. A vast majority of tech firms in decline were from the semiconductor industry.The worst performer in this category of mega-caps with a significant sway over index moves was Intel (INTC), down 9.6%, after Samsung Electronics' preliminary earnings disappointed investors. Samsung forecast a surge in profit, but investors were seemingly locking in huge gains made on memory-chip stocks, and that's having a global impact, Barron's reported.In geopolitical news, the US Treasury Department revoked the general licence that authorised the sale of Iranian oil, petrochemicals, and petroleum products, according to a statement from the Office of Foreign Assets Control. "Effective July 7, 2026, General License X, dated June 21, 2026, is revoked and superseded in its entirety by General License X1."The OFAC is offering a short grace period until 12:01 a.m. EDT on July 17 to close authorized transactions under the June 21 order, according to the statement.The US action comes as two tankers were struck by projectiles in the Strait of Hormuz on Tuesday, per media reports on Tuesday citing the United Kingdom Maritime Trade Operations centre. In the past 24 hours, three tankers have been attacked in the chokepoint for about a fifth of the global crude oil flows, Al Jazeera, a Middle East broadcaster, reported on Tuesday.Meanwhile, Iran's Foreign Minister Abbas Araghchi said negotiations with the US on a final peace deal will not begin unless threats continue, referring to President Donald Trump's warning that Washington will reach an agreement with Tehran or "finish the job," Al Jazeera reported on Tuesday.The front-month global benchmark North Sea Brent jumped 5.5% to $75.99 a barrel, and the US West Texas Intermediate advanced 5.4% to $72.27 a barrel.Most US Treasury yields surged. The two-year yield jumped 6.4 basis points to $4.19%, and the 10-year soared 7.4 basis points to 4.55%.Gold futures dropped 1.2% to $4,116.10, and silver futures slumped 3.2% to $60.36.In economic news, consumer expectations for one-year US inflation growth jumped to 3.7% in June from 3.5% in the previous month, according to a survey released by the New York Federal Reserve Bank. The print is the highest since September 2023. Median inflation expectations rose to 3.3% from 3.1% three years ahead, and remained unchanged at 3.0% over five years.Consumer confidence for July rose from the prior month, with the RealClearMarkets' monthly index rising to 45.5 from 42.5 in June. A print above 50 suggests optimism, while a reading below 50 suggests pessimism.

Dow JonesNasdaq CompositeS&P 500$INTC