S&P/ASX 200

Australia's May Consumer Price Index Expected to Fall 0.3%, Westpac Says

Australia's May 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 in a Friday report.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 report.Data since the release of the April CPI reading has shown some moderation in cost pressures, and the focus in May will again be on evidence of a second-round impact from elevated oil prices and energy-intensive goods, the bank said.It added that May is typically a seasonally soft month, and on a seasonally adjusted basis, Westpac expects CPI to rise 0.2%.Food prices are expected to gain 0.7%, driven mainly by a 2.9% rebound in fruit and vegetables following recent unexpected softness in the previous month. Additionally, an El Niño weather event has now been confirmed, which, combined with higher fertilizer costs, might cause larger output disruptions and create greater upside pressure to food prices this year and in 2027.Westpac cautioned that the key risk to the May forecast is delayed pass‑through, with second‑round effects potentially being slower than expected due to both policy dampening and lags in how price changes feed into the CPI.

ASX Midday Sector Update: Healthcare Stocks Rise, Materials Sector Struggles

Healthcare stocks rose 1% at midday Friday.CSL (ASX:CSL) gained nearly 3% in recent trade.On the flip side, the materials sector struggled, shedding 3%.BHP Group (ASX:BHP) shares were down nearly 4% in recent trade after increasing the estimated investment for its Jansen stage two potash project to $6.9 billion from $4.9 billion following a cost and schedule review.

ASX Preview: Australian Shares Set to Fall as Oil Rises on Ceasefire Doubts; Macquarie Group Completes AU$734 Million Employee Equity Share Purchase

Australian shares are poised to fall on Friday as oil prices edged higher on renewed geopolitical tensions after US Vice President JD Vance warned Israel over Lebanon operations, raising uncertainty over the US-Iran ceasefire.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.1%, 1.9%, and 0.1%, respectively.In corporate news, Macquarie Group (ASX:MQG) has completed the acquisition of about AU$734 million in shares for its 2026 employee retained equity plan awards at a weighted average price of AU$238.80 per share, while seeking shareholder approval to issue 55,402 restricted share units to its chief executive under its annual general meeting.Commonwealth Bank of Australia (ASX:CBA) appointed Victoria Ledda as group chief information officer and Rodrigo Castillo as group chief technology officer, effective July 1, subject to regulatory approval.Australia's benchmark index fell 0.6% or 55.2 points to close at 8,911.10 on Thursday.

Australian Shares Fall; Washington H. Soul Pattinson to Sell Brickworks Industrial JV Stake to Goodman in Nearly AU$2 Billion Deal

Australian shares fell on Thursday as investors reacted to signals from the US Federal Reserve regarding a potential rate hike later in the year.The S&P/ASX 200 Index dropped 0.62%, or 55.20 points, to close at 8,911.10.The US Federal Reserve left interest rates unchanged, but policymakers indicated they expected higher borrowing costs later in the year. On Wall Street, the Nasdaq Composite fell 1.3%, and the S&P 500 was down 1.2%.The US and Iran released the text of an agreement, which extends a ceasefire declared in April by another 60 days to allow the two countries to negotiate a final ​deal. Brent crude oil futures traded around $78 per barrel.On the domestic front, advertised salaries in Australia recorded a 0.3% month-on-month increase in May, pointing to sluggish growth in recent months, according to the SEEK Advertised Salary Index.Job ads in Australia in May fell 0.8% month on month and 4.5% year on year, while applications per job ad rose 3.6% month on month and are now 5.5% higher year on year, according to a report by Seek.In company news, Washington H. Soul Pattinson (ASX:SOL) has agreed to divest its interest in certain Brickworks (ASX:BKW) property division industrial joint venture (JV) trust assets to Goodman Australia Industrial Partnership and related Goodman Group (ASX:GMG) entities for AU$1.89 billion under a binding agreement.Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group. Fidante will merge with Channel Capital under Channel Group to form an active investment platform managing roughly AU$150 billion across equities, fixed income, and alternative assets.Lastly, Rio Tinto Group's (ASX:RIO) Oyu Tolgoi unit in Mongolia has resumed regular concentrate export shipments. The Oyu Tolgoi copper and gold deposit is jointly owned by the government of Mongolia, which has a 34% stake, and Rio Tinto, which owns the remaining 66%.

Australian Buyers Need AU$17,000 More Income to Service Median Mortgage Since January, Says Cotality

Australians intending to buy a median house in Brisbane must earn over AU$17,000 more in annual household income in May than they did in January just to service a typical mortgage, with Perth buyers facing a similar AU$16,500 income requirement spike over the same five-month period, according to a Thursday report by Cotality.The report said easing home values in Sydney and Melbourne have not improved affordability, as higher interest rates continue to increase borrowing costs and mortgage pressures. Meanwhile, rising prices in mid-sized cities are pushing entry costs to record highs.Brisbane's unit market has shifted sharply on the back of strong buyer demand, narrowing the gap in minimum income needed to purchase a median unit between Sydney and Brisbane to just over AU$2,000, the report added.Sydney home values dropped 0.9% in May and now sit 2.1% below their November 2025 high, while Melbourne values fell 0.8% for the month and remain 3.2% under their March 2022 peak, the report added.Perth recorded annual value growth of 25.8%, far outpacing Melbourne's 0.5%, widening the spread between the fastest and slowest growing capitals to 25 percentage points. New listings reached 33,914 over the four weeks to June 14, running 4.9% below the five-year average, with total listings at 129,010, up 1.7% on a year earlier, it added.

SoftBank-Backed Automotive Marketplace Carro Buys Australia's CarPlace

Singapore-headquartered automotive marketplace Carro has acquired Australian used-car platform CarPlace from Autoleague, according to a company release on Thursday.Under the deal, Autoleague will retain a stake in CarPlace and become an investor in Carro.The acquisition will give Carro access to showrooms in Western Australia and Queensland, while also enabling it to launch wholesale operations in Victoria.The transaction expands Carro's presence to eight markets as part of its global expansion strategy.Carro is backed by investors including SoftBank Group (TYO:9434), Cool Japan Fund and Temasek.

Australian Job Ads Fall 0.8% in May, Applications Per Ad Up 3.6%, Says Seek

Job ads in Australia in May fell 0.8% month on month and 4.5% year on year, while applications per job ad rose 3.6% month on month and are now 5.5% higher year on year, according to a Thursday report by Seek.The report said references to artificial intelligence-related skills in job ads continue to grow, up 2.9% month on month and about 69% year on year, with the decline in overall job ad volumes weighted toward occupations with high automation exposure, which comprise less than 10% of job ads on Seek.Tasmania was the only state to record job ad growth in May, up 0.8%, while Western Australia was the only state to record annual growth at 0.4%, with all other states and territories recording a decline.Applications per job ad rose across the board, with the largest increases in Victoria and Queensland, both up 6.8% quarter on quarter, the report added.Ad volumes rose in engineering and science and technology, both up 2% month on month, and hospitality and tourism and legal, both up 0.1%. Engineering ads were up 16% year on year and science and technology up 7%, alongside growth in construction, mining, resources and energy, and manufacturing, transport and logistics.

ASX Midday Sector Update: Consumer Staples Stocks Inch Up, Information Technology Sector Struggles

Consumer staples stocks advanced nearly 1% at midday Thursday.Woolworths Group (ASX:WOW) gained nearly 1% in recent trade.On the flip side, the information technology sector struggled, shedding more than 2%.WiseTech Global (ASX:WTC) shares fell past 4% in recent trade.

Advertised Salaries Record 0.3% Month-on-Month Rise in May

Advertised salaries in Australia recorded a 0.3% month-on-month increase in May, pointing to sluggish growth in recent months, according to the SEEK Advertised Salary Index released on Thursday.The slowdown might indicate a "more challenging" business environment, SEEK Chief Economist Blair Chapman said.Annual advertised salary growth was steady at 4.1% year on year in May, remaining relatively strong but below the pace recorded over 2022 and 2023, per the report.

ASX Preview: Australian Shares Set to Fall as US Fed Signals Tighter Stance; Challenger to Merge Fidante With Channel Capital

Australian shares are poised to fall on Thursday after the US Federal Reserve signaled a tighter policy outlook under new Chair Kevin Warsh, keeping interest rates steady while flagging potential hikes ahead.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 1.2%, 1.3%, and 1%, respectively.In the macroeconomy, investors are eyeing Australia's upcoming consumer price index report, due next week.In corporate news, Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group.Washington H. Soul Pattinson (ASX:SOL) agreed to divest its interest in certain Brickworks (ASX:BKW) property division industrial joint venture trust assets to Goodman Australia Industrial Partnership and related Goodman Group (ASX:GMG) entities for AU$1.89 billion under a binding agreement.Australia's benchmark index rose 0.5% or 48.6 points to close at 8,966.30 on Wednesday.

Australian Shares Rise; ARN Media Settles Legal Dispute With Kyle Sandilands

Australian shares rose on Wednesday after US President Donald Trump said the Strait of Hormuz might be reopened as early as Friday.The S&P/ASX 200 Index gianed 0.54%, or 48.60 points, to close at 8,966.30.The US and Iran are expected to sign the peace agreement in Switzerland on Friday.On Wall Street, the Nasdaq Composite fell 1.15%, and the S&P 500 was down 0.57%. Brent crude oil futures fell below $80 per barrel.On the domestic front, Australia must be ready to manage a financial system that is more prone to shocks, as the currently strained geopolitical environment carries broad implications ranging from the resilience of key payments infrastructure to the fragmentation of cross-border capital flows, Reserve Bank of Australia Assistant Governor Brad Jones said in a speech.The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index inched up slightly to negative 0.17% in May from negative 0.18% in April, but remains weak, Westpac said.In company news, ARN Media (ASX:A1N) reached a binding settlement with Kyle Sandilands, resolving all outstanding legal disputes, including Federal Court proceedings. The agreement requires the company to pay a total of AU$12.1 million, comprising AU$3 million in July and the remainder in monthly installments through June 2029.Vysarn (ASX:VYS) entered into a binding share sale agreement for the acquisition of NWG Enterprises, which deals in industrial-scale irrigation systems, pumping systems, and ancillary technology, for a total consideration of up to 33 million Vysarn shares and AU$25 million in cash.Lastly, Symal Group (ASX:SYL) has agreed to acquire Queensland-based defense and resources contractor Shamrock Civil for AU$51 million upfront, alongside up to AU$28.4 million in performance-based earn-outs linked to fiscal year 2026 and fiscal year 2027.

Australia Household Spending Rises Again in May, CommBank Says

Australia's household spending rose 0.2% in May, after a 1.2% drop in April as discretionary spending held up well, according to the Commonwealth Bank of Australia's (ASX:CBA) Household Spending Insights published Wednesday.Seven of the 12 spending categories recorded gains in May, with the largest increases in recreation, which rose 2.3%, helped by a lift in travel spending, and hospitality, which climbed 1%.However, there continue to be signs that household spending in Australia has softened compared with the strong, consistent pace of growth in 2025. Spending is expected to continue to slow through the second half of the year under the weight of weaker household income growth due to higher interest rates and high inflation.The pace of annual growth slipped to 4.5% in original terms, down from 5.5% in April. Strong base effects are at play, with May having five Sundays, which lowered the rate of annual growth. In seasonally adjusted terms, the annual growth rate reached 5.3%.

Australia's Unemployment Rate Forecast to Fall to 4.4% in May, BofA Securities Says

Australia's unemployment rate is expected to fall to 4.4% in May, as employment rises by 35,000 and Easter-driven weakness in April unwinds, BofA Securities predicted in a report on Wednesday.The "surprisingly weak" April data is believed to largely reflect abnormal seasonality associated with the Easter holiday and youth employment, falling 56,000 in April, with a 0.9 percentage point rise in the unemployment rate. As these effects unwind in May, employment should rebound and the unemployment rate edge lower.Overall, signals suggest labor demand remains resilient, consistent with a near-term rebound in employment and only a gradual rise in the unemployment rate through the second half. Concerns around artificial intelligence reducing the number of new job openings are not supported by current trends. Job listings remain broadly stable through the year, and graduate hiring is running above pre-pandemic levels.

Australia Must Prepare for More Shock-Prone Financial System Amid Strained Geopolitical Climate, Central Bank Assistant Governor Jones Says

Australia must be ready to manage a financial system that is more prone to shocks, as the currently strained geopolitical environment carries broad implications ranging from the resilience of key payments infrastructure to the fragmentation of cross-border capital flows, Reserve Bank of Australia Assistant Governor Brad Jones said in a Wednesday speech.Speaking at an Australian Banking Association conference in Melbourne, Jones said some of the most consequential developments in the global financial system's modern history were the result of geopolitical unrest.Geopolitical shocks have a long history of hampering bond and stock markets by disrupting supply chains, and the associated risk has long been part of contingency planning for the payment system, which is "an issue of particular relevance today," Jones said.At the same time, the financial system also has a record of shaping geopolitical developments, he said, pointing to the role of the British bond market in halting Napoleon's march across Europe early in the 19th century.As challenges to international cohesion have resurfaced, financial and economic linkages are again being reshaped by strategic considerations, with some indicators suggesting that a fracturing is underway "on a scale and with a speed unseen in eight decades," the central bank official said."All of this brings us to the old aphorism - we must take the world as it is, not as we wish it to be," Jones said. "It is in this context that policy makers are dialing up efforts to ensure the financial system can weather a more challenging risk environment."While the composition of international asset exposures for Australian banks is somewhat less troublesome than in other countries, the high foreign ownership share of the country's fixed-income markets means "the Australian financial system will not be immune from shocks abroad," Jones said.

ASX Midday Sector Update: Materials Stocks Advance, Energy Sector Struggles

Materials stocks advanced nearly 2% at midday Wednesday.BHP Group (ASX:BHP) gained almost 1% in recent trade.Meanwhile, the energy sector struggled, shedding more than 2%.Woodside Energy Group (ASX:WDS) shares fell nearly 4% in recent trade.

Australia's Leading Index Inches Up in May, Remains Weak

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index inched up slightly to negative 0.17% in May from negative 0.18% in April, but remains weak, Westpac said in a report on Tuesday.The index indicates the expected pace of economic activity compared with trend levels three to nine months into the future.The Australian economy is experiencing a noticeable loss of momentum, as indicated by the March quarter national accounts showing a softening in activity, apart from increased investment in data centers.The May index suggests that the subdued growth will likely persist into the latter half of the year and into early 2027.

ASX Preview: Australian Shares Set to Fall as Oil Slides on Iran-US Deal Hopes; Flight Centre Travel Group Cuts Fiscal Year 2026 Profit Guidance

Australian shares are poised to fall on Wednesday, tracking an overnight oil slide after crude dropped over 5% to a three-month low on easing Middle East supply fears and reports of a possible interim Iran-US deal to reopen the Strait of Hormuz and restore Iranian exports.Overnight, the S&P 500 and the Nasdaq Composite fell 0.6% and 1.2%, respectively, while the Dow Jones Industrial Average gained 0.6%.In the macroeconomy, investors are eyeing Reserve Bank of Australia Assistant Governor Brad Jones' speech and the Westpac-Melbourne Institute Leading Economic Index report.In corporate news, Flight Centre Travel Group (ASX:FLT) cut its fiscal year 2026 underlying profit before tax guidance to between AU$275 million and AU$295 million from a previous range of AU$310 million to AU$345 million, citing the Middle East conflict's "significant short-term impact" on leisure travel.Nickel Industries (ASX:NIC) said that its combined adjusted earnings before interest, taxes, depreciation, and amortization from operations for April and May were around $80 million.Australia's benchmark index inched up 3.7 points to close at 8,917.70 on Tuesday.

Australian Shares Flat; Karoon Energy Cuts 2026 Production Guidance Due to Operational Issues at Joint Venture

Australian shares were flat on Tuesday after the Reserve Bank of Australia kept interest rates on hold as expected.The S&P/ASX 200 Index was little changed to close at 8,917.70.On Wall Street, the S&P 500 rose 1.7%, the Nasdaq Composite jumped 3.1%, and the Dow Jones Industrial Average closed at a record high, rising 0.9%.Brent crude oil futures fell just 0.3% to $82.96 per barrel.On the domestic front, the Reserve Bank of Australia decided to leave the cash rate target unchanged at 4.35%. The bank said financial conditions are now tighter following three rate increases since the beginning of the year, with signs that the economy is slowing as expected.However, inflation remains too high, prompting the bank's monetary policy board to leave the cash rate unchanged while assessing the impact of previous rises and the oil supply disruption.The ANZ-Roy Morgan Australian consumer confidence edged down 0.1 points to 70.7 in the week of June 8 to June 14. Household sentiment improved on personal finances and major purchases, even as confidence in broader economic conditions slipped amid escalating Middle East tensions, according to ANZ economist Sophia Angala.In company news, Karoon Energy (ASX:KAR) lowered its aggregate production guidance for the year to between 7.2 million barrels of oil equivalent (MMboe) and 8.2 MMboe from a previous range of 8.1 to 9.2 MMboe. The downgrade is a result of operational issues at the company's Who Dat joint venture, which operates a namesake oil and gas field in the Gulf of Mexico.Atlas Arteria (ASX:ALX) said that IFM Global Infrastructure Fund subsidiary Diamond Infraco 1 and its affiliates raised their stake in the company to 38.26% from 34.48% as of Monday. IFM Global now holds 555.3 million securities of the company.Lastly, Valiant Gold (ASX VAL) said assay results from its maiden drilling program at the South Emu-Trito mine in Western Australia confirmed mineralized extensions to around 400 meters below the existing resource.

RBA Press Conference: Labour Market Still a Consideration, But Lowering Rates to Stimulate It Will be an All-Round Bad Outcome