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Australian Shares Flat; BHP Group Meets Fiscal Year 2026 Production Guidance, Issues Fiscal Year 2027 Outlook

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Australian shares were flat on Thursday after major indices on Wall Street posted gains, but the materials sector fell as BHP posted lower fiscal year 2027 copper production guidance.

The S&P/ASX 200 Index was little changed to close at 8,840.40.

Brent crude oil futures continued to trade around $85 per barrel as the US conducted further strikes inside Iran. The Wall Street Journal reported US President Donald Trump is considering expanding US military operations in Iran.

On the domestic front, Australia's consumer inflation expectations fell by 0.8 percentage points in July to 4.7%, according to the Melbourne Institute Survey of Consumer Inflationary Expectations.

Australian household spending rose 0.3% in June, with end-of-financial-year sales less impactful than in 2025, as inflation and higher-for-longer interest rates weighed on consumers, according to the Commonwealth Bank of Australia. Gains were recorded across 10 of the 12 spending categories, led by utilities and education.

In company news, BHP Group (ASX:BHP) reported fiscal year 2026 copper production of 1.95 million tonnes, down 3% from fiscal 2025 but within its guidance range of 1.9 million tonnes to 2 million tonnes. For fiscal year 2027, BHP Group is targeting copper output of 1.65 million to 1.8 million tonnes and iron ore production of 260 million to 272 million tonnes. Its shares fell past 2% on market close.

AMP (ASX:AMP) expects the first-half 2026 underlying net profit after tax of AU$170 million to AU$180 million, with the increase driven by stronger contributions from its China partnerships, favorable investment income impacts due to recent interest rate hikes, and the recognition of about AU$13 million of carried interest in relation to the partial sale of certain assets within a legacy fund.

Perpetual (ASX:PPT) said it has received a revised non-binding, conditional proposal from EQT-controlled Windflower to acquire all of its shares via a scheme of arrangement for AU$22.07 per share, up 2% from the previous AU$21.64 offer.

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