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Australian Shares Flat; Syrah Resources Resolves Offtake Agreement Issues With Tesla

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Australian shares were flat with a negative bias on Monday as investors awaited fresh developments on an awaited peace agreement in the Middle East.

The S&P/ASX 200 Index was little changed at 8,729.40.

Negotiators from the US and Iran are still trying to work out a deal to end the conflict in the Middle East, Reuters reported.

Brent crude oil futures rose over 2% to trade around $93 per barrel.

On the domestic front, the Westpac-DataX Card Tracker Index continued its gradual decline, falling 1.6 points over four weeks to 153.2 in the week that ended May 23, slightly below the year-to-date average of 154.

The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Manager's Index (PMI) fell to 50.7 in May from 51.3 in April, remaining above the 50-point mark separating contraction and expansion.

The Melbourne Institute said its monthly inflation gauge fell in May after two consecutive monthly increases, driven largely by a decline in transport costs, particularly fuel prices.

The ANZ-Indeed Australian job ads rose 1.8% month on month in May to a seasonally adjusted 116, following a 3.7% decline over the prior two months.

In company news, Syrah Resources (ASX:SYR) said Tesla no longer plans to terminate an offtake agreement with the company after Syrah showed that it is producing conforming active anode material samples. Syrah said it has now "made sufficient progress to cure the alleged default" and is progressing through the later stages of qualification testing approvals with Tesla.

DroneShield (ASX:DRO) said shareholders delivered a first strike against the company's remuneration report at its annual general meeting. Around half of shareholders voted against a resolution to adopt the remuneration report at the May 29 meeting.

Ventia Services Group (ASX:VNT, NZE:VNT) secured a five-year, AU$133 million contract extension to continue operating and managing the Australian marine complex-common user facility in Western Australia, with the new term commencing in July 2027.

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