Australian shares rose on Monday, as investors reacted to optimism regarding the potential resolution of the conflict in the Middle East.
The S&P/ASX 200 Index gained 0.47%, or 42.50 points, to close at 9,019.30.
Brent crude oil futures fell to trade around $83 per barrel. Earlier, US President Donald Trump had said he cancelled strikes on Iran after Iran and other Middle Eastern countries had asked for time to complete a peace deal.
On Friday, the Nasdaq Composite rallied 1% on the back of strong earnings from tech giants, while the S&P 500 and the Dow Jones Industrial Average rose 0.7% and 0.5%, respectively.
On the domestic front, Australia's home value index declined 0.7% in July, representing the largest drop since December 2022, as the country's housing market downturn expanded to hit more regions, Cotality said.
The Australian manufacturing sector recorded modest returns to growth in July, with production and new orders increasing for the first time in six months and employment rising at the sharpest rate since January. The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Managers' Index rose to 52 in July from 51.5 in June.
In company news, FleetPartners Group (ASX:FPR) received an unsolicited, indicative, non-binding, and conditional offer from SG Fleet Topco to acquire all of the outstanding shares in the company through a scheme of arrangement at AU$3.60 apiece. The company's shares earlier rose over 16% to their highest since August 2024.
Westpac Banking (ASX:WBC, NZE:WBC) completed the sale of the RAMS home loan portfolio, around AU$15.4 billion at completion, to a consortium consisting of Pepper Money (ASX:PPM), credit funds and accounts managed by KKR, and PIMCO managed funds.
Lastly, Steadfast Group (ASX:SDF) said a consortium comprised of Amwins Group, Dragoneer Investment Group, and KKR reconfirmed its intention to proceed with a proposal to acquire the company at AU$6 per share in cash.