S&P/ASX 200

Australia's Inflation Increases 4% in Year to May

Australia's consumer price index (CPI) rose 4% in the 12 months to May, down from a 4.2% increase in the year to April, the Australian Bureau of Statistics reported Wednesday.The largest contributor to annual inflation was housing, which rose 6.5%, followed by food and non-alcoholic beverages and transport, both up 3.3%.Annual housing inflation was primarily driven by rising costs for electricity, new dwellings, and rents, while food inflation was mainly influenced by higher prices for meals out and takeaway food."Electricity costs are 21.1% higher than 12 months ago as Commonwealth and State government rebates that reduced electricity costs for households are no longer in place," said Rachael McCririck, the bureau's head of prices statistics.Trimmed mean annual inflation was 3.6% in the 12 months to May, up from 3.4% in the 12 months to April.Annual goods inflation fell to 4.2% in the year to May from 4.7% in April, while services inflation rose to 3.7% from 3.5%, per the report.Automotive fuel prices fell nearly 12% in May, after a 7% decline in April."These monthly falls include the impacts of the halving of the fuel excise on April 1 and lower world oil prices in recent weeks," McCririck added.The CPI declined by 0.1% in seasonally adjusted terms during the month of May.

Australia's Engineering Construction Activity Rises in March Quarter

Australia's total engineering construction work done rose 7.1% to AU$38.87 billion in the March quarter, seasonally adjusted, up from AU$36.29 billion in the previous quarter, the Australian Bureau of Statistics reported Wednesday.The private sector's seasonally adjusted work done rose 15.9% to AU$22.93 billion, whereas the public sector's fell 3.5% to AU$15.94 billion.The total value of work commenced in the March quarter rose 6.2% to AU$31.21 billion, comprising AU$19.88 billion from the private sector and AU$11.33 billion from the public sector.Total engineering construction work in the March quarter rose 5.3%, with private sector activity rising 14.5% and public sector activity declining 5.5% compared with the March 2025 quarter.

ASX Most Active Stocks

Here are the five most actively traded big-cap stocks on the Australian Securities Exchange on Wednesday.Arafura Rare Earths (ASX:ARU): 24.7 million sharesGQG Partners (ASX:GQG): 17.2 million sharesMirvac Group (ASX:MGR): 12.2 million sharesMinerals 260 (ASX:MI6): 9.4 million sharesSouth32 (ASX:S32): 8.7 million shares

Australia's Trimmed Mean Inflation at 0.4% in May, 3.6% in Year to May

ASX Preview: Australian Shares Set to Rise as Gold Falls on Fed Rate Hike Bets; Tasmea to Acquire Energy Services Provider for Up to AU$75 Million

Australian shares are poised to rise on Wednesday, as investors weigh a stronger US dollar and rising Federal Reserve rate-hike expectations that weighed on gold and other precious metals in overnight trade.Sentiment is also supported by softer oil prices, reflecting easing geopolitical tensions in the Middle East and signs of progress in US-Iran talks over access to the Strait of Hormuz.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 1.4%, 2.2%, and 0.1%, respectively.In the macroeconomy, Australia's consumer price index and engineering construction activity reports are due at 11:30 am Sydney time.In corporate news, Tasmea (ASX:TEA) struck a deal to acquire JPS Group, an integrated services provider to the energy sector, for up to AU$75 million.Atlas Arteria (ASX:ALX) said its independent directors are reviewing their response following the extension of IFM Investors' takeover offer after the bidder increased its voting power above 50%.Australia's benchmark index fell 0.3% or 29.1 points to close at 8,787 on Tuesday.

Market Chatter: Fertilizer Prices Fall to Pre-War Levels on Weak Demand, China's Export Limits

Global urea prices dropped back to prewar levels in June, reversing a surge from $492.50 to $900 per metric ton following the closure of the Strait of Hormuz, Nikkei Asia reported on Tuesday.The decline in fertilizer prices stemmed from lower demand and China's export restrictions, with the Iran-US ceasefire possibly adding to downward price pressure, the report said.Upside price risk remains due to potential bottlenecks in the opening of the strait, the report cited Argus Media as saying.The International Fertilizer Association forecasts global exports to reach just above 200 million tons this year, the report said.The price floor will depend on Chinese policy and European production costs, with full market stabilization possibly taking up to a decade, the report cited analysts as saying.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Australian Shares Fall; Iluka Resources to Supply Magnet Rare Earth Oxides to Automotive Firm

Australian shares closed lower on Tuesday as Asian markets followed Monday's Wall Street sell-off.The S&P/ASX 200 Index fell 0.33%, or 29.10 points, to close at 8,787.On Monday, the Nasdaq Composite fell 1.3%, the S&P 500 lost 0.4%, while the Dow Jones managed to add 0.3%.The US waived sanctions on Iran for 60 days from Monday following the first talks under a nascent peace deal, Reuters reported Monday."These are far ​from dull markets. The former generals of the market ​appear to have lost momentum, and investors are rotating into other areas of the market that are more defensive, less AI-focused and offer more predictable cash flows," said Chris Weston, head of research at Pepperstone Group, as quoted by Reuters.In domestic news, Australian consumer confidence rose 2.1 points in the week of June 15 to 21 to 72.8 points, its highest level since early March, according to a note from ANZ.Also, rising interest rates and recent tax changes threaten a more pronounced correction for Australia's housing markets, where conditions have already been slowing amid a challenging and uncertain outlook, Westpac said in its Housing Pulse report.Further, more than four in 10 Australian small and medium businesses are using artificial intelligence tools, and a further 14% are planning to adopt them, with property services, finance and insurance, and business services sectors leading adoption, according to a report by National Australia Bank.Meanwhile, Australia's private sector activity edged closer to stabilization in June, but persistent declines in new orders and the weakest business confidence since the pandemic reflected lingering demand-side weakness despite easing inflationary pressures, according to a survey by S&P Global.In company news, Iluka Resources (ASX:ILU) struck a binding agreement to supply magnet rare earth oxides, including neodymium, praseodymium, dysprosium, and terbium, to an unnamed automotive company.WiseTech Global (ASX:WTC) denied awareness of any investigation linked to Executive Chair Richard White following media reports concerning a visa application, saying the matter relates to him personally and not the company.Lastly, Viva Energy Group (ASX:VEA) completed works to restart the residue catalytic cracking unit at the Geelong Refinery in Victoria.

ASX Midday Sector Update: Healthcare Stocks Inch Up, Materials Sector Struggles

Healthcare stocks advanced almost 1% at midday Tuesday.CSL (ASX:CSL) gained 2% in recent trade.Meanwhile, the materials sector struggled, shedding nearly 1%.BHP Group (ASX:BHP) shares fell marginally in recent trade.

More Than 40% of Australian Small, Medium Businesses Using AI Tools, NAB Says

More than four in 10 Australian small and medium businesses are using artificial intelligence tools, and a further 14% are planning to adopt them, with property services, finance and insurance, and business services sectors leading adoption, according to a Tuesday report by National Australia Bank (ASX:NAB).The bank said businesses operating in industries that handle large volumes of data are leading the way, with property services at 69%, finance and insurance services at 64%, and business services at 61%.NAB said 35% of businesses see automation as the biggest opportunity for AI, while 44% report they are not currently using AI, but almost every internet-enabled workplace will have some exposure through everyday tasks such as internet searches or drafting emails.

Rising Rates, Tax Changes Threaten More Pronounced Correction for Australia's Housing Markets, Westpac Says

Rising interest rates and recent tax changes threaten a more pronounced correction for Australia's housing markets, where conditions have already been slowing amid a challenging and uncertain outlook, Westpac said in its Housing Pulse report filed Monday.Although tight supply and strong population-driven demand help limit the downside risks, investor demand is now expected to see a sharp and sustained pull-back due to tax changes proposed in the federal budget, the bank said.The tax proposals primarily impact new investor purchases of existing homes, removing the "negative gearing" treatment allowing losses to be deducted from other income and shifting from a flat 50% discount to consumer price index indexation for capital gains.But existing investors have continued access to negative gearing benefits, giving them a strong incentive to retain assets, while an exemption for newly-built houses will make them more appealing for new investors."We expect the changes to drive a steep fall in investor activity with wider market turnover declining 20%," Westpac said. "Prices are expected to move 2% lower nationally, leaving them flat over calendar 2026."Nationally, dwelling prices fell in April and May to return a flat reading on a three-month basis, while turnover has also softened somewhat alongside a material decline in auction clearance rates, according to the report.The Westpac-MI "time to buy a dwelling" index sank 14.3% over the three months to May as back-to-back rate hikes took the index to an "extremely weak" 72 reading, the bank said. The index rebounded in June but is still 3.4% below its February level and "woeful" compared to the long-run average of 119.

Australian Consumer Confidence Rises to Highest Level Since Early March

Australian consumer confidence rose 2.1 points in the week of June 15 to 21 to 72.8 points, its highest level since early March, according to a Tuesday note from ANZ.Despite the rise, confidence remains below the 2025 average, ANZ economist Sophia Angala said.The four-week moving average rose 1.7 points to 70.8 points.Weekly inflation expectations were down 0.2 percentage points to 5.8%, while the four-week moving average fell to 6%.Current financial conditions over the last year eased 0.3 points to 62.4, while financial conditions over the next 12 months rose 0.3 points to 78.9.Short-term economic confidence over the next 12 months was up 4.5 points to 64.5, while medium-term economic confidence over the next five years rose 1 point to 78.6.The "time to buy a major household item" sub-index increased 4.9 points to 79.6, the largest rise across the sub-indices and its sixth consecutive weekly rise, on the back of end-of-financial-year sales events, per the report.

ASX Preview: Australian Shares Set to Rise on US-Iran Peace Hopes; WiseTech Global Denies Awareness of Any Investigation Into Chair Richard White

Australian shares are poised to rise on Tuesday, tracking firmer gold prices and a sharp drop in crude oil after progress in US-Iran peace talks eased inflation concerns and shifted interest rate expectations higher.Overnight, the S&P 500 and the Nasdaq Composite fell 0.4% and 1.3%, respectively, while the Dow Jones Industrial Average rose 0.3%.In the macroeconomy, Australia's private sector activity edged closer to stabilization in June, but persistent declines in new orders and the weakest business confidence since the pandemic reflected lingering demand-side weakness despite easing inflationary pressures, according to a survey by S&P Global released Tuesday.The ANZ-Roy Morgan Australian consumer confidence rose 2.1 points to 72.8 in the week of June 15 to June 21, ANZ reported Tuesday.In corporate news, WiseTech Global (ASX:WTC) denied awareness of any investigation linked to Executive Chair Richard White following media reports concerning a visa application, saying the matter relates to him personally and not the company.Santos (ASX:STO) started continuous production at its Pikka phase one oil development on Alaska's North Slope, with initial flow from the first wells averaging around 20,000 barrels per day.Australia's benchmark index fell 0.1% or 12.6 points to close at 8,816.10 on Monday.

Australia Private Sector Nears Stabilization in June Even as Orders Fall, Confidence Weakens

Australia's private sector activity edged closer to stabilization in June, but persistent declines in new orders and the weakest business confidence since the pandemic reflected lingering demand-side weakness despite easing inflationary pressures, according to a survey by S&P Global released Tuesday.The Flash Australia PMI Composite Output Index rose to 49.8 in June from 48.7 in May, remaining just below 50 no-change mark and signaling broadly stable business activity, the report said.A reading below the 50-point threshold indicates contraction.The Flash Services PMI Business Activity Index rose to 49.9 in June from 48.7 in May. The Flash Manufacturing Output Index edged down to 48.9 from 49, while the Flash Manufacturing PMI increased to 51.2 from 50.7.Output showed signs of stabilizing in June, but new orders continued to weaken, with firms reporting a fourth consecutive monthly decline amid ongoing market uncertainty and falling export demand, per the report.Business confidence fell sharply in June amid uncertainty over economic conditions and the outlook, hitting its lowest level since the onset of the COVID-19 pandemic in March 2020.Employment rose again in June as firms expanded capacity and hired across both manufacturing and services, reversing May's first job decline in nearly a year and a half.Companies cut into existing backlogs at the fastest rate in over two-and-a-half years as rising staffing levels and weakening new orders accelerated the decline in outstanding work.Input costs continued to rise sharply in June, though inflation eased for a second straight month to its lowest level since March amid widespread reports of higher fuel and transport expenses.Output price inflation eased in June as firms slowed the pace of price increases in response to moderating input cost pressures, marking the weakest rise in charges since February.

Asia Week Ahead: Policy Rates; Inflation Prints; and Labor Data

The macro calendar in Asia for the week of June 22 will be relatively light, though investors will still have a mix of inflation prints, activity indicators and policy decisions to track.The week gets off to a quiet start on Monday with China's benchmark lending rates.Activity picks up Tuesday with inflation data from Hong Kong and Singapore, alongside preliminary manufacturing and services readings from several major economies.Wednesday brings Thailand's monetary policy decision, while Thursday will shift the focus to Australia's labor market data.Friday rounds out the trading week with Tokyo inflation data, as well as Singapore's trade and industrial production figures.China's industrial profits data will follow on Saturday, with markets watching for signs of continued growth in corporate earnings.Here's what to watch in the week ahead.MONDAY, June 22The week kicked off with the release of China's closely-watched lending rates.As expected, the People's Bank of China kept its benchmark rate steady at its monthly fixing, with the one-year and five-year loan prime rate (LPR) maintained at 3% and 3.50%, respectively.Macao's monthly inflation print will be in the news later in the day.TUESDAY, June 23The second day of the week brings inflation data from Hong Kong and Singapore, along with preliminary readings on manufacturing and services activity across several economies.Singapore's inflation is expected to rise to 2.1% year on year in May from 1.8% in April, according to ING. The bank said the increase would mainly reflect elevated food prices and the delayed pass-through of earlier fuel price gains.Inflation in Hong Kong is similarly expected to accelerate to 2.1% in May from 1.7% in April, Trading Economics forecasted.Taiwan will report its monthly export orders and unemployment rate. Economists at ING said they expect May export orders to rise to 50.7% year on year amid the ongoing tech boom.Meanwhile, unemployment is expected to edge up to 3.4% in May from 3.34% in April, according to a Trading Economics forecast.On the activity front, S&P Global releases flash purchasing managers' index reports covering manufacturing, services, and composite activity in India, Japan, and Australia.Thailand reports its trade figures for May.According to Trading Economics, the country's trade deficit could narrow to $5 billion from a $10.02 billion deficit in the prior month period.South Korea's monthly consumer confidence report will also be among the highlights of the day.WEDNESDAY, June 24Thailand's central bank will convene for its interest rate decision, with markets expecting no change to the current benchmark of 1%, according to a Trading Economics forecast.Markets will also be closely watching Australia's monthly inflation print after the country's central bank decided to leave the cash rate target unchanged at its most recent meeting to assess the impact of previous rises and the oil supply disruption.Australia's consumer price index (CPI) is expected to fall 0.3% from the previous month, a result that would still see the annual pace of inflation rise to 4.4%, Westpac said.Transport is expected to be the primary drag due to lower fuel prices, alongside declines in clothing and footwear, somewhat offset by modest gains in food and housing, according to the bank.Elsewhere, Taiwan will report industrial production and retail sales data for May.As with export orders, industrial production is expected to benefit from the ongoing tech boom and could record a growth of 14.2% year on year, ING said.THURSDAY, June 25Thursday will be relatively light on macro readouts, with Australia's monthly labor data among the handful of releases of note.Westpac said it expects Australia's May labour force data to show a bounce-back after April's data surprised materially to the downside, possibly due to extra holiday-related weakness tied to the survey's Easter timing.The bank forecast a bounce-back in employment of 45,000 for May, with the participation rate edging back up to 66.8%, and the unemployment rate slipping to 4.4% from 4.5%.Hong Kong's May trade figures will also feature Thursday.The city is expected to report a trade deficit of HK$32.5 billion for the month, widening from a deficit of HK$29.5 billion in April, Trading Economics forecasted.In South Korea, the business confidence survey for June will be expected. The readout should show an improvement in business sentiment amid easing geopolitical tensions and strong performance in the tech sector, ING said.FRIDAY, June 26Japan's closely watched Tokyo core consumer price index for June will capture headlines, offering markets an early indicator of the overall inflation rate in the country.Economists at ING expect headline inflation to rise modestly to 1.7% year on year from 1.4% in the prior month and below the government's 2% target."JPY weakness and second-round effects from higher energy prices should add to inflationary pressures on both goods and services prices," ING said.Trade data from Singapore and Macao will also feature Friday, with Singapore additionally reporting industrial production data.Lastly, the Philippines will release its business confidence report for May.SATURDAY, June 27The week rounds off with the release of China's industrial profits data.After profits at major industrial enterprises rose 18% year on year in the first four months of 2026, markets will be watching the latest data for signs of continued growth.

Australian Shares Flat; Inghams Moves to State of High Biosecurity Vigilance After H5N1 Bird Flu Confirmed in Western Australia

Australian shares were flat on Monday, as investors reacted to signs of progress in talks between the US and Iran.The S&P/ASX 200 Index was little changed to close at 8,816.10.Brent crude oil futures traded around $79 per barrel.Iranian negotiators said progress had been made in talks with the US, while mediators released a statement saying the first session of talks had concluded and progress had been made on a roadmap to reach a final deal.Iran earlier said it had once again closed the Strait of Hormuz.In company news, Inghams Group (ASX:ING) moved to a state of heightened biosecurity vigilance to mitigate against any potential risks after Australian authorities confirmed the detection of the H5N1 avian influenza strain in two wild birds found in the Esperance region of Western Australia. It clarified that there had been no detection of the virus in commercial poultry, including Ingham's operations and its supply chain.Metcash (ASX:MTS) reported fiscal year 2026 underlying earnings of AU$0.245 per share, down from AU$0.251 a year earlier. Revenue for the 12 months ended April 30 was AU$17.35 billion, compared with AU$17.32 billion a year earlier.Lastly, Credit Corp Group (ASX:CCP) ceased discussions with Humm Group (ASX:HUM) regarding a potential acquisition, ending takeover talks after the parties were unable to agree on terms. Credit Corp identified unresolved concerns during commercial due diligence and reduced its indicative offer.

ASX Midday Sector Update: Consumer Discretionary Stocks Advance, Information Technology Sector Struggles

Consumer discretionary stocks advanced nearly 1% at midday Monday.Wesfarmers (ASX:WES) shares fell marginally in recent trade.On the flip side, the information technology sector struggled, shedding 2%.WiseTech Global (ASX:WTC) shares fell past 13% in recent trade.

ASX Preview: Australian Shares Set to Fall on US-Iran Tensions; Metcash Posts Lower Fiscal Year 2026 Underlying Earnings, Higher Revenue

Australian shares are poised to fall on Monday amid renewed US-Iran tensions, including threats to resume conflict and reports that the Strait of Hormuz has been closed again, heightening fears of oil supply disruptions.In the macroeconomy, investors are eyeing Australia's upcoming consumer price index report on Wednesday.In corporate news, Metcash (ASX:MTS) reported Monday fiscal 2026 underlying earnings of AU$0.245 per share on revenue of AU$17.35 billion, compared with earnings of AU$0.251 on revenue of AU$17.32 billion a year earlier.Atlas Arteria (ASX:ALX) said IFM Group increased its stake in the company to 42.01% on June 19, up from 39.61%.Australia's benchmark index fell 0.9% or 82.4 points to close at 8,828.70 on June 19.

Australian Shares Decline; BHP Group Lifts Canada Potash Project Cost to Nearly $7 Billion

Australian shares retreated further on Friday, even as oil tankers began to move around the Strait of Hormuz after a peace deal signed between the US and Iran.The S&P/ASX 200 Index dropped 0.92%, or 82.40 points, to close at 8,828.70.On Wall Street, the Nasdaq Composite rose 1.9%, and the S&P 500 was up 1.1%.Brent crude oil futures traded around $79 per barrel. Meanwhile, US Vice President JD Vance cancelled a planned trip to meet Iranian negotiators in Switzerland on Friday. The Swiss Foreign Ministry confirmed the planned talks will not take place.In company news, BHP Group (ASX:BHP) increased the estimated investment for its Jansen stage two potash project to $6.9 billion from $4.9 billion after a detailed cost and schedule review, delaying first production by two years to late fiscal 2031. Shares fell 5% on market close.SkyCity Entertainment Group (ASX:SKC, NZE:SKC) and SkyCity Adelaide entered into a nonbinding heads of agreement with the Commissioner for Liquor and Gambling in South Australia, which provides for a total fine of AU$21 million. Its shares gained 15% on close.Lastly, Electro Optic Systems Holdings (ASX:EOS) said it has secured an order of about AU$175 million for its Slinger Counter-Drone remote weapon system (RWS) to be supplied to Generation 5 Holding, with systems to be manufactured in Australia and the UAE and delivered during 2027 and 2028. Its shares closed 14% higher.

Australia May Labor Force Data Expected to Bounce Back After April's Downside Surprise, Says Westpac

Westpac said it expects Australia's May labour force data to show a bounce-back after April's data surprised materially to the downside, possibly due to extra holiday-related weakness tied to the survey's Easter timing, though the underlying trend is looking softer, according to a Friday report by the bank.The bank said April's Labor Force Survey showed a decline in employment of 18,600 and a jump in the unemployment rate to a post-pandemic high of 4.5%, with much of the weakness possibly reflecting abnormal seasonality since the survey ran over the full Easter long weekend.Westpac forecast a bounce-back in employment of 45,000 for May, with the participation rate edging back up to 66.8%, and the unemployment rate slipping to 4.4% from 4.5%, the report added.While the employment forecast looks strong, it would only result in an average monthly gain of about 13,000 over April and May, below the 30,000 per month pace seen in the first few months of the year, the bank said.