S&P/ASX 200

Australian Shares Climb; Ampol Secures ACCC Nod for Proposed Acquisition of Fuel, Convenience Retailer

Australian shares rose on Wednesday even as hostilities flared in the Middle East, as hopes of a peace agreement being reached between the US and Iran waned.The S&P/ASX 200 Index was up 0.7%, or 61.30 points, to close at 8,785.70.The US said Iranian missile attacks on ​Bahrain, Kuwait, and other regional targets were either thwarted or failed.Brent crude oil futures were trading above $97 per barrel.On the domestic front, Australia's gross domestic product (GDP) grew 0.3% in the March quarter on a seasonally adjusted, chain volume basis, after a 0.9% growth in the December 2025 quarter, according to the Australian Bureau of Statistics. The GDP rose 2.5% compared with a year earlier.Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index fell below the 50 no-change mark in May, posting 48.7 from 50.7 in April, according to a report by S&P Global.The Australian Industry Index remained weak in May, largely due to the energy crisis, with the index down 1 point to -26.5 in seasonally adjusted terms, according to a report released by the Australian Industry Group.In company news, Ampol's (ASX:ALD) proposed acquisition of fuel and convenience retailer EG Australia received approval from the Australian Competition and Consumer Commission (ACCC). The approval is conditional on the company giving an executed court-enforceable undertaking to the ACCC to divest 41 sites to Metro Petroleum.Superloop (ASX:SLC) upgraded its fiscal year 2026 guidance for underlying earnings before interest, taxes, depreciation, and amortization to AU$118 million to AU$122 million from a prior forecast of AU$112 million to AU$120 million.Lastly, Cygnus Metals (ASX:CY5) agreed to be acquired by Central Asia Metals in an all-scrip deal that values each Cygnus share at AU$0.176. Under a definitive scheme implementation deed, Cygnus shareholders will receive 0.06 new Central Asia Metals shares for each Cygnus share held.

Australia's Monthly Total Credit Rises in March, RBA Data Shows

Australia's total credit rose 0.7% month on month in April, following a 0.7% increase in March, data from the Reserve Bank of Australia showed on Wednesday.Housing credit rose by 0.6%, after rising 0.7% the previous month, while personal credit rose 0.1%, following a 0.6% increase.Business credit rose 0.7%, after a 0.9% lift recorded in the previous month.Broad money rose 0.8%, following a 0.7% increase in the previous month.Total credit jumped 8% in the year ended April, compared with the 6.7% increase in the year ended March 2025.

ASX Midday Sector Update: Materials Stocks Jump, Information Technology Sector Falls

Materials stocks advanced nearly 2% at midday Wednesday.BHP Group (ASX:BHP) gained more than 2% in recent trade as copper prices posted a new record high.On the flip side, the information technology sector struggled, shedding more than 1%.Xero (ASX:XRO) shares fell past 3% in recent trade.

Australia's Economy Grows 0.3% in March Quarter

Australia's gross domestic product (GDP) grew 0.3% in the March quarter on a seasonally adjusted, chain volume basis, after a 0.9% growth in the December 2025 quarter, according to data released on Wednesday by the Australian Bureau of Statistics.The GDP rose 2.5% compared with a year earlier."Economic growth slowed in the March quarter, with modest household and public sector expenditure as well as cyclone disruptions to mining and export activities," said Grace Kim, the bureau's head of national accounts.Business investment in data center machinery and equipment was the main driver of growth, but since most of these capital goods were imported, the positive effect on GDP was partly offset by a significant drag from net trade.GDP per capita declined by 0.1% in the March quarter, following a 0.5% increase in the December 2025 quarter.Household spending rose 0.5% in the March quarter, driven by a nearly 11.7% increase in electricity, gas, and other fuel costs after government rebates ended, which increased out-of-pocket expenses."Rising interest rates and significantly higher fuel costs in [March] likely created an environment for more cautious consumer behavior," Kim said.Government final consumption expenditure fell 0.2%, its weakest quarterly growth since the September 2022 quarter, as Commonwealth defense spending eased and state and local spending dropped after electricity rebates ended.Exports fell 1.1%, their sharpest quarterly drop in two years, led by coal and ore declines, while imports rose 2.1% on a 6.3% jump in capital goods, subtracting 0.8 percentage points from GDP growth.Private business investment increased by 6%, largely driven by a 16.3% rise in spending on machinery and equipment (M&E)."M&E investment recorded the largest rise in 30 years with the expansion of data centers in New South Wales and Victoria during the quarter," Kim added.The household saving-to-income ratio fell to 6.2% in the March quarter from 7% in the previous quarter, as nominal household spending grew faster than the disposable income.Household disposable income increased due to a 1.2% rise in employee compensation, but gains were partly offset by higher income tax and interest payments.

Australia's GDP Up 0.3% in March Quarter Versus 0.9% Growth in December 2025 Quarter, 0.3% Rise in March 2025 Quarter

Australian Industry Index Remains Weak in May Due to Energy Crisis, Australian Industry Group Says

The Australian Industry Index remained weak in May largely due to the energy crisis, with the index down 1 point to -26.5 in seasonally adjusted terms, according to a report released by the Australian Industry Group on Wednesday.The energy crisis weighed heavily on new orders, declining 6.3 points to -34.6, with firms reporting delays in investments and looming uncertainty in the future path of energy markets.Input prices remained high at 63.1, but showed slight easing in May with a 6.4 point decline, while weaker sales price growth at 18.3 indicated limited pricing power.Additionally, wage growth increased by 6 points to 43.6, contributing to ongoing labor cost pressures.Metals manufacturing increased in response to supply disruptions, while other sectors faced weak conditions.Meanwhile, business services, which was previously less impacted by the energy crisis, experienced a downturn by 12 points in May, to be deeper in contraction at -33.3, its lowest result since February 2025.The Australian PMI was in contraction at -22.4, while the Australian PCI continued to rebound momentum in May, rising 9 points to -9.9.

Australia Services Activity Contracts in May as New Orders Fall at Fastest Rate in Almost Two and a Half Years, Says S&P

Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index fell below the 50 no-change mark in May, posting 48.7 from 50.7 in April, according to a Wednesday report by S&P.Lower activity was seen in real estate and business services, transport and storage, and finance and insurance, while growth was maintained in consumer services and information and communication, it added.The report said that new export orders decreased for the second time in three months at a "solid" pace.Service providers signalled a solid and accelerated reduction in new business, with the latest contraction the sharpest in just under two-and-a-half years, while new business has now fallen in three successive months.The Composite Output Index posted 48.7 in May, down from 50.4 in April, signalling a renewed fall in private sector output in Australia.The report said the fall in output reflected the sharpest reduction in new orders since December 2023, while employment fell for the first time in 17 months, the report added.Input costs continued to increase rapidly, with the pace of output price inflation little-changed from the 44-month high posted in April, while business confidence dropped to a two and a half year low, the report added."Taken alongside the contraction in manufacturing output reported by the PMI earlier in the week, the latest data suggest that the Australian economy is going to struggle to generate any growth during the second quarter of the year," said Andrew Harker, Economics Director at S&P Global Market Intelligence.

ASX Preview: Australian Shares Set to Rise as Oil Advances, Gold Falls on Strong US Labor Data; Northern Star Resources Increases Estimated Mineral Resources, Ore Reserves

Australian shares are poised to rise on Wednesday, tracking higher oil prices after crude climbed to a one-week high amid volatile trading as markets weighed uncertain Iran-US negotiations and ongoing tensions around the Strait of Hormuz.Market sentiment was also influenced by a softer gold price as stronger-than-expected US labor data reinforced expectations that the Federal Reserve will keep interest rates elevated for longer.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 0.1%, 0.03%, and 0.5%, respectively.In the macroeconomy, the Australian national accounts report is due at 11:30 am Sydney time.In corporate news, Northern Star Resources (ASX:NST) said its estimated mineral resources increased 26% to 88.9 million ounces as of March 31, while its estimated ore reserves jumped 27% to 28.4 million ounces.Ampol's (ASX:ALD) proposed acquisition of fuel and convenience retailer EG Australia received approval from the Australian Competition and Consumer Commission.Australia's benchmark index edged down 5 points to close at 8,724.40 on Tuesday.

Australian Shares Flat; SRG Global Discloses AU$1.85 Billion of Contracts, Upgrades Fiscal 2026 EBITDA Outlook

Australian shares were again flat, with a negative bias, on Tuesday amid investor anxiety over the course of ceasefire negotiations between the US and Iran.The S&P/ASX 200 Index was little changed to close at 8,724.40.Media reports said that Iran had halted indirect negotiations with ​the US. US President Donald Trump said talks were moving forward at a rapid pace.Brent crude oil futures were trading above $94 per barrel.On the domestic front, Australia's Fair Work Commission approved a 4.75% wage increase.The country's seasonally adjusted company gross operating profits decreased 1.3% in the March quarter compared with the December 2025 quarter and rose 3.2% compared with the prior corresponding period, according to a report by the Australian Bureau of Statistics (ABS).Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell 3.4% to 16,710 in April from 17,307 in the previous month, figures from the ABS showed.Australian consumer confidence rose 2.7 points in the week of May 25 to 31 to 68.8 points, its highest level since early March, according to ANZ Research. Despite the rise, confidence remains 17.5 points below the 2025 average.In company news, SRG Global (ASX:SRG) upgraded its fiscal 2026 guidance after securing AU$1.85 billion of contracts with blue-chip clients in a range of sectors. The company raised its fiscal 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to the top end of its previously issued AU$164 million to AU$168 million range, while initiating fiscal 2027 EBITDA guidance of between AU$190 million and AU$200 million.Tasmea (ASX:TEA) struck a deal to acquire specialist electrical contractor Maxim Group Australia for up to AU$254 million. The company said Maxim has an identified pipeline in excess of AU$1.3 billion, which provides full revenue visibility for fiscal 2027 and about 85% revenue visibility for fiscal 2028.Nine Entertainment Co. Holdings (ASX:NEC) completed the sale of its regional television assets, NBN and Nine Darwin, for a total cash consideration of AU$20.5 million, converting them from wholly-owned businesses to affiliates to be owned and operated by WIN Network.

Australia's March Quarter GDP Expected to Book 2.6% Year-over-Year Increase, Growth to Weaken in June Quarter, BofA Securities Says

Australia's gross domestic product (GDP) for the March quarter is expected to rise by 0.5% sequentially and 2.6% on an annual basis, but growth is expected to weaken in the June quarter, BofA Securities said in a note on Monday.In comparison, the GDP increased by 0.8% quarter-over-quarter in the December 2025 quarter and by 2.6% year-over-year.The first-quarter data is too early to capture any material spillovers from the conflict in the Middle East, with negative growth effects more likely to emerge in the second quarter. The data center boom will drive a strong 3.8% quarter-over-quarter rise in private investment. However, this investment also contributed to a surge in imports, partly offsetting the growth impulse.The Reserve Bank of Australia is likely to focus on the strength of private demand before the conflict, alongside inflation risks stemming from weak productivity and rising unit labor costs.While household consumption is anticipated to be resilient in the first quarter, led by non-discretionary categories, it is expected to fall in the June quarter.

Australia's Economy Expected to Grow 0.5% in Q1; Wage Hike Has No Material Impact on Inflation Outlook, ANZ Says

Australia's gross domestic product is expected to grow 0.5% in the first quarter from the previous quarter and expand 2.6% from a year earlier, but the growth should decelerate over the remainder of 2026 as momentum has cooled following the Middle East conflict, ANZ said in a Tuesday report.The bank said the Australian Fair Work Commission's (FWC) 4.75% increase to modern award wages is the largest hike since 2023, but doesn't materially change the outlook for wages, inflation, or the key cash rate."Increases in award wages do not typically flow through fully to the wage price index, but if they did, we estimate this decision would make an around 0.5 percentage point contribution to annual WPI growth," the bank said.It expects the softer economic activity outlook and a rise in the jobless rate to help offset the impact of the FWC's decision with regard to the aggregate wages bill.

Australia's Minimum Wage Hike Does Not Entail Direct Material Consequence for Inflation Outlook, Westpac Says

The Australian Fair Work Commission's (FWC) decision to increase the minimum wage will have a very minor direct impact on Westpac's wholesale price index forecast for the third quarter and will not contribute substantially to the inflationary impulse, the bank said in a Tuesday report.The FWC's annual wage review handed minimum award workers a 4.75% increase to pay starting from July, above Westpac's expectation for a 4.25% lift and larger than the 3.50% rise in 2025.The decision will directly affect over 21% of the workforce, with a larger impact on industries that are more reliant on awards, including health care, retail trade, and accommodation and food services, the bank said.The move creates some risk of inflation expectations remaining higher for longer, making the Australian central bank's job more difficult, although a gradual easing in the labor market and a deceleration of the economy will mitigate the risk somewhat, Westpac said."Today's decision for a larger increase in the minimum wage and awards will go some way against protecting more vulnerable workers' wages against the inflation shock, but the outlook is still defined by a weaker economy and labor market, which will limit the bargaining power for many workers," the bank said.

RBA's Ian Harper Expresses Concerns Over Rise in Inflation Expectations

Reserve Bank of Australia (RBA) Board Member Ian Harper said on Tuesday that any possible risk of long-term inflation expectations becoming unanchored requires "strong action," according to his speech on Tuesday.Harper said that Australia was seeing renewed inflation pressures even before the oil shock caused by the Middle East conflict.The RBA increased the official cash rate by 25 basis points to 4.35% at its May meeting."Higher interest rates are expected to slow the economy and lower the risk that inflation becomes entrenched," said Harper.

Australia's Current Account Deficit Widens in March Quarter

Australia's seasonally adjusted current account deficit widened to AU$27.12 billion in the March quarter from AU$23.04 billion in the previous quarter, data from the Australian Bureau of Statistics showed Tuesday.The current account balance declined for the fourth consecutive quarter, with the deficit projected to reach its highest level as a percentage of nominal gross domestic product (GDP) since June 2016, said Jonathon Khoo, the Bureau's head of international statistics.The balance on trade in goods and services shifted to a deficit of AU$2.44 billion in the March quarter, from a surplus of AU$1.07 billion in the previous quarter."Trade in goods and services fell into a deficit for the first time since December quarter 2017, with exports of mining commodities falling and imports of data center equipment and fuels rising," Khoo said.Exports of goods and services fell 1.2% in the March quarter, driven by a 1.2% decline in goods exports, while imports of goods and services rose 0.8%, led by a 1.5% increase in goods imports, per the report.Services exports declined by 1.3%, mainly due to a drop in education-related travel services as fewer international students enrolled.Non-monetary gold exports and imports increased by 23.7% and 12.9%, respectively, as gold prices continued to hit record highs, marking the tenth consecutive quarterly rise in both trade flows."Foreign-owned mining companies in Australia saw higher profits this quarter due to price rises in gold and profits paid back to foreign owners and shareholders," Khoo added.The net primary income deficit widened to AU$23.66 billion in the March quarter from AU$23.27 billion in the previous quarter, the report said.The financial account recorded a surplus of AU$18.9 billion, supported by net debt and equity inflows.The balance on goods and services is expected to detract 0.8 percentage points from the March quarter GDP growth, the report added.

ASX Midday Sector Update: Information Technology Stocks Advance, Real Estate Sector Struggles

Information technology stocks advanced nearly 3% at midday Tuesday.Xero (ASX:XRO) gained more than 6% in recent trade.On the flip side, the real estate sector struggled, shedding nearly 2%.Goodman Group (ASX:GMG) shares fell nearly 1% in recent trade.

Australian Companies' Gross Operating Profits Fall in March Quarter

Australia's seasonally adjusted company gross operating profits decreased 1.3% in the March quarter compared with the December 2025 quarter and rose 3.2% compared with the prior corresponding period, according to a Tuesday report by the Australian Bureau of Statistics.Seasonally adjusted wages and salaries advanced 1.2% in the quarter and 5.5% compared with March 2025.Meanwhile, inventories inched up 0.5% over the quarter on a seasonally adjusted, chain volume basis and edged down 0.3% compared with prior corresponding period.Sales of goods and services rose in 10 industries and fell in five, with construction and professional, scientific, and technical services leading the gains, while mining recorded the largest decline.Sales of goods and services in the manufacturing sector edged 0.3% higher over the quarter and grew 3.1% compared with 2025, while wholesale trade sales rose 0.5% for the quarter and 3% year on year.

Total Number of Dwelling Approvals in Australia Falls in April

Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell 3.4% to 16,710 in April from 17,307 in the previous month, figures from the Australian Bureau of Statistics showed on Tuesday.Private sector housing approvals edged down 1% to 10,088 in April, while approvals for private sector dwellings excluding houses fell 3.6% to 6,403, according to the ABS data.Meanwhile, the value of total non-residential building approvals rose over 29.4% to AU$7.75 billion, and the value of total residential building approvals fell 0.3% to AU$10.89 billion.

Petroleum Exploration Expenditure in Australia Jumps 46% in March Quarter

The petroleum exploration expenditure by private organizations in Australia in the March quarter jumped 46.2% year-over-year to AU$467 million on a seasonally adjusted basis, while the mineral exploration expenditure grew 16.1% year-over-year to AU$1.09 billion, according to data from the Australian Bureau of Statistics on Tuesday.Mineral exploration expenditure saw a trend rise of 13.4% year over year to AU$1.08 billion, while petroleum exploration expenditure rose 36.3% to AU$471 million.Total onshore petroleum exploration expenditure climbed 14.8% quarter-over-quarter to AU$273.7 million, while offshore petroleum exploration expenditure fell 23.3% to AU$192.9 million on a seasonally adjusted basis.Gold saw the largest fall in expenditure quarter-over-quarter, down 5.8% to AU$450.9 million, while iron ore rose 5% to AU$186 million.