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Australian shares traded mixed, with energy stocks like Woodside advancing while consumer discretionary names slipped amid softening consumer confidence.

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International

Melbourne Institute's Monthly Inflation Gauge Falls in June

The Melbourne Institute monthly inflation gauge declined again in June following consecutive increases in March and April, driven mainly by lower transport costs, particularly reduced fuel prices, the institute said in a Monday report.The monthly cost of living decreased for three of the five selected household types, including age pensioners, other government transfer recipients, and pensioners and beneficiaries, the report said.Annual headline inflation, as measured by the inflation gauge, stood at 3.9%.The gauge estimates month-to-month price movements for a wide-ranging basket of goods and services across the main capital cities of Australia.

ASX 200
Asia

ASX Preview: Australian Shares to Fall as OPEC Boosts Output; Vault Minerals Receives Nearly AU$6 Billion Merger Proposal From Genesis Minerals

Australian shares are poised to fall on Monday after the Organization of the Petroleum Exporting Countries (OPEC) agreed to raise output quotas by 188,000 barrels per day from August, adding to global supply and extending pressure on crude prices amid a gradual reopening of the Strait of Hormuz and easing Middle East supply disruptions.In the macroeconomy, investors are eyeing the release of the ANZ-Indeed Job Ads and the Melbourne Institute monthly inflation gauge report.In corporate news, Vault Minerals (ASX:VAU) received an unsolicited binding proposal from Genesis Minerals (ASX:GMD) to merge via acquisition by Genesis of all ordinary shares in Vault through a scheme of arrangement, valuing Vault at AU$5.6 billion or AU$5.27 per share.Greatland Resources (ASX:GGP) posted preliminary June quarter production of 79,099 ounces of gold and 3,573 tonnes of copper.Australia's benchmark index rose 1.4% or 119.9 points to close at 8,844.40 on July 3.

ASX 200ASX:GGPASX:GMDASX:VAU
Asia

Australian Shares Rise; Australia's Federal Court Approves ASX's AU$20.5 Million Settlement in Misleading Disclosure Case

Australian shares closed higher on Friday with investors now expecting the US Federal Reserve to keep interest rates steady after softer US jobs data.The S&P/ASX 200 Index rose 1.37%, or 119.80 points, to close at 8,844.30.On Thursday, the Dow Jones Industrial Average rose 1.1%, to set another record, reaching a fourth straight week of gains. Meanwhile, the S&P 500 was flat. The US nonfarm payrolls report showed the economy added 57,000 jobs in June, below the ​estimates for a rise of 110,000.Gold rose by over 1% to around $4,200 per ounce.On the domestic front, Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index rose to 50.5 in June from 48.7 in May, signaling a marginal increase in business activity following a contraction in the previous month, according to a report by S&P Global.In company news, ASX (ASX:ASX) is set to pay a pecuniary penalty of AU$20.5 million for misleading disclosures in February 2022 over the progress of a technology upgrade project, Australia's Federal Court ruled. The case, brought by the Australian Securities and Investments Commission, centered on a claim by ASX that its CHESS Replacement Project was progressing well, even though the project was facing delays.Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand. The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026.Genesis Minerals (ASX:GMD) reported gold production of 70,767 ounces for the June quarter, bringing fiscal year 2026 production to 285,400 ounces. The company said both production and all-in sustaining costs are within its fiscal year guidance range of 260,000 to 290,000 ounces at AU$2,500 to AU$2,700 per ounce.

ASX 200ASX:ASXASX:GMDASX:SUN
International

Australia's GDP Growth Expected to Soften to 1.1% Year-over-Year in 2026, ANZ Says

Australia's mining states, New South Wales, Western Australia, and Queensland, drove the country's economic momentum in the March quarter, and the country's gross domestic product (GDP) growth is expected to soften to 1.1% year-over-year in 2026, from 2.5% year-over-year in 2025, ANZ Research said in a Friday report.South Australia recorded the strongest index performance nationally, despite slower momentum. The broader economy's growth pulse was slightly above trend over the final months of 2025 and early 2026. The data largely predate the escalation of conflict in the Middle East.The ANZ Stateometer showed that the consumer subindex remained below its long-run trend across all states and territories. National household consumption rose 0.5% quarter-over-quarter, while discretionary spending rose 0.1% over the period as higher rates and fuel prices affected households.Headline inflation grew to 4.1% on an annual basis during the first quarter, driven by higher fuel prices.

ASX 200
Asia

ASX Midday Sector Update: Materials Stocks Advance, Utilities Struggle

Materials stocks advanced 2.3% to lead gainers in midday trading on Friday, as prices for precious metals, including gold and copper, pushed higher.BHP Group (ASX:BHP) gained over 1% after striking a definitive deal to sell its San Manuel property in Arizona, US, to Faraday Copper in return for a 30% stake in Faraday.Meanwhile, utilities stocks led decliners with a fall of nearly 0.8%.Origin Energy (ASX:ORG) and Meridian Energy (ASX:MEZ) both shed more than 1%.

ASX 200ASX:BHPASX:MEZASX:ORG
Australia's Service Sector Expands in June, But Boost May Be Temporary as New Orders Continue to Slide
US Markets

Australia's Service Sector Expands in June, But Boost May Be Temporary as New Orders Continue to Slide

Australia's service sector returned to growth in June following a contraction in the previous month, as higher staffing capacity allowed for an expansion of business activity despite continued weakness in new orders.The seasonally adjusted S&P Global Australia Services PMI Business Activity Index improved to 50.5 in June from 48.7 in May, advancing beyond the 50 mark that separates growth from contraction, the index provider said Friday.However, S&P Global Market Intelligence Economics Director Andrew Harker cautioned that the rise in activity was driven at least partly by employment growth as opposed to fresh business, as new orders declined for the fourth consecutive month in June."This may therefore prove to be a temporary boost unless order volumes start to expand again soon," Harker said, adding that Australia will need to see an improvement in the demand environment to sustain the nascent rise in business activity into the remainder of the year.The PMI reading comes as business confidence hit its lowest level since November 2023 after dropping for the second straight month in June. Concerns about the overall economy and tax changes outlined in Australia's federal budget have weighed on the 12-month outlook for business activity, while the Middle East conflict continued to negatively impact new export orders, S&P Global said.The finance and insurance sector reported the lowest level of optimism among the five sectors monitored by S&P Global, while information and communication enjoyed the highest sentiment.Service providers faced another sharp monthly increase in input costs during June, although the pace of inflation eased for the second consecutive month. At the same time, output prices rose at a considerably slower pace compared with May on account of competitive pressures.Additionally, the S&P Global Australia Composite PMI posted at 50.4 in June following a 48.7 reading in May, indicating a marginal increase in private-sector business activity.

ASX 200
Asia

ASX Preview: Australian Shares Set to Gain After Dow Jones Record; BHP Group to Sell Arizona Property to Faraday Copper

Australian shares are poised to rise on Friday, tracking gains on Wall Street, where the Dow Jones Industrial Average index reached another record high.Overnight, the Nasdaq Composite fell 0.8%, while the Dow Jones Industrial Average rose 1.1%, to set another record, reaching a fourth straight week of gains. Meanwhile, the S&P 500 was flat. The US nonfarm payrolls report showed the economy added 57,000 jobs in June, below the ​estimates for a rise of 110,000.In the macroeconomy, Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index rose to 50.5 in June from 48.7 in May, signaling a marginal increase in business activity following a contraction in the previous month, according to a report by S&P Global.In corporate news, BHP Group (ASX:BHP) struck a definitive deal to sell its San Manuel property in Arizona, US, to Faraday Copper in return for a 30% stake in Faraday at closing on a fully diluted basis. BHP is expected to hold 138 million Faraday common shares after the deal's closing, representing a 32.5% stake on a non-diluted basis, including shares it acquired through a private placement in March.Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand. The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026.Genesis Minerals (ASX:GMD) reported gold production of 70,767 ounces for the June quarter, bringing fiscal 2026 production to 285,400 ounces. The company said both production and all-in sustaining costs are within its fiscal year guidance range of 260,000 to 290,000 ounces at AU$2,500 to AU$2,700 per ounce.Australia's benchmark index edged up 0.02% or 1.6 points to close at 8,724.50 on Thursday.

ASX 200ASX:BHPASX:GMDASX:SUN
International

Australia Services Activity Expands in June as Staffing Rises, But New Orders Continue to Fall

Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index rose to 50.5 in June from 48.7 in May, signalling a marginal increase in business activity following a contraction in the previous month, according to a Friday report by S&P Global.The report said an increase in staffing capacity helped Australian service providers expand business activity during June, with growth recorded despite a further reduction in new orders, with the overall expansion centred on consumer services firms.Incoming workloads continued to fall for the fourth consecutive month, with panellists reporting a lack of confidence among customers. At the same time, the war in the Middle East was cited as the key factor behind a second successive monthly reduction in new export orders, the report added.Service providers faced a further sharp monthly increase in input costs during June, albeit with the pace of inflation easing for the second consecutive month, with higher fuel prices and wage costs widely cited by panellists, the report added.With new orders falling, companies used extra staffing resources to work through outstanding business, reducing backlogs of work to the largest extent in almost two years, while confidence in the 12-month outlook waned for the second month in a row to its lowest since November 2023, it added.

ASX 200
Asia

Australian Shares Flat; BHP Group Files Environmental Permit Application to Reopen Chile Copper Mine

Australian shares closed flat with a negative bias on Thursday, while Asian markets saw a broad-based decline after Wednesday's Wall Street sell-off due to a fall in semiconductor shares.The S&P/ASX 200 Index was little changed to close at 8,715.20.On Wednesday, the S&P 500 fell 0.2%, and the Nasdaq Composite lost 0.7%, dragged down by a sell-off in semiconductor shares."The plunge in Asia semis today is more about a hangover from Wall Street," said Fabien Yip, a market analyst at IG, as quoted by ReutersMeanwhile, the US and Iran wrapped up a round of indirect talks on Wednesday with little sign of progress toward a lasting peace, instead discussing issues they said had already been settled under an interim agreement disclosed two weeks earlier, according to a Wednesday Reuters report.On the domestic front, Australia's goods balance recorded a seasonally adjusted deficit of AU$3.02 billion in May, down from a surplus of AU$1.38 billion in April, according to data published by the Australian Bureau of Statistics.Also, S&P Global Ratings expects a stable credit environment for Asia-Pacific sectors amid solid AI demand and the reopening of the Strait of Hormuz.Further, already restrictive financial conditions in Australia are expected to tighten even more, which will weigh on demand and possibly stop the Reserve Bank of Australia (RBA) from hiking interest rates any further despite inflation remaining above target, BofA Securities said.In company news, BHP Group (ASX:BHP) has filed an environmental permit application to reopen the Cerro Colorado copper mine in Chile.Northern Star Resources (ASX:NST) appointed Suresh Vadnagra as chief executive, succeeding Stuart Tonkin, effective Oct. 5Xero (ASX:XRO) is integrating with Microsoft 365 to make its real-time financial data more accessible to small businesses and accountants.

ASX 200ASX:BHPASX:NSTASX:XRO
International

Australian Financial Conditions to Tighten Further, Reducing Case for More Interest Rate Hikes, BofA Securities Says

Already restrictive financial conditions in Australia are expected to tighten even more, which will weigh on demand and possibly stop the Reserve Bank of Australia (RBA) from hiking interest rates any further despite inflation remaining above target, BofA Securities said in a Wednesday note.Rising real interest rates, declining home prices, tighter credit availability, and a hawkish US Federal Reserve should together lead to a slowing of domestic demand growth, according to the investment banking firm."We expect the RBA will remain on hold through 2026 with a clear tightening bias, while assessing whether the combination of higher real rates, slowing demand, and an easing labor market is sufficient to return inflation to target," BofA Securities said.Real interest rates are poised to increase through the remainder of this year and 2027 as inflation expectations ease, even under BofA's base case scenario of no further rate hikes, reinforcing the drag on consumption and investment.Meanwhile, a more hawkish US Fed will exert upward pressure on Australian yields, raising funding costs across the curve and tightening conditions independently of the RBA's policy, BofA Securities said. It added that softer house prices and lower turnover are expected to spill over to weaker consumption, construction, and broader activity.

ASX 200
Japan

ASX Midday Sector Update: Financial Stocks Advance, Utilities Sector Struggles

Financial stocks advanced 1.2% at midday Thursday.Commonwealth Bank (ASX:CBA) shares rose marginally in recent trade.On the flip side, the utilities sector struggled, shedding 3%.Origin Energy (ASX:ORG) shares fell past 4% in recent trade.

ASX 200ASX:CBAASX:ORG
International

Australia Trade Balance Swings to Deficit in May

Australia's goods balance recorded a seasonally adjusted deficit of AU$3.02 billion in May, down from a surplus of AU$1.38 billion in April, according to data published by the Australian Bureau of Statistics on Thursday.Goods exports fell 6.9%, or AU$3.22 billion, to AU$43.61 billion, driven by decreases in the non-monetary gold and metal ores and minerals.Goods imports rose 2.6%, or AU$1.18 billion, to AU$46.63 billion, driven by increases in non-industrial transport equipment, civil aircraft, and confidentialized items.

ASX 200
Asia

ASX Preview: Australian Shares to Fall as Oil Slides on US-Iran Talks; Northern Star Resources Set to Meet Fiscal 2026 Gold Sales Guidance

Australian shares are poised to fall on Thursday, tracking weaker oil prices after crude slid more than 1% to its lowest since March on easing supply concerns following progress in US-Iran talks in Qatar.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.2%, 0.7%, and 0.03%, respectively.In the macroeconomy, the international trade in goods report is due at 11:30 am Sydney time.In corporate news, Northern Star Resources (ASX:NST) reported preliminary gold sold of 433,000 ounces for the June quarter, bringing fiscal 2026 gold sold to about 1.5 million ounces.Almonty Industries (ASX:AII) said its Sangdong mine in South Korea has started processing plant throughput operations, marking a transition to saleable tungsten concentrate production.Australia's benchmark index fell 0.6% or 55.8 points to close at 8,722.90 on Wednesday.

ASX 200ASX:AIIASX:NST
Asia

Fitch Sees AI, Private Credit, Sovereign Risk as Main Themes for Asian Investors

Institutional investors across Asia consider AI disruption, private credit growth, and sovereign risk as major credit risk drivers, Fitch Ratings said in a recent release.Overspending in AI and digital infrastructure has become a main theme for investors, as it introduces completion risk, high capital expenditure, and pricing pressure, Fitch said.While AI increases efficiency gains, it also carries risks from labor displacement and declining tax bases, mainly in developed markets, the rating agency said.For private credit, heightened asset competition and opacity risks due to the use of layered finance structures could muddy leverage and creditor positioning, Fitch said.Investors call for stronger oversight in private credit, especially in terms of rating criteria and market practices, according to Fitch.The rating agency also sees lingering macroeconomic volatility due to Gulf tensions and supply chain disruption, with a proposed peace deal moving focus to the conflict's residual and indirect effects.

ASX 200Hang SengNikkei 225Shanghai Composite^SZSE
Asia

AI Demand, Hormuz Reopening Stabilize Credit Conditions for Asia-Pacific Sectors, S&P Says

S&P Global Ratings expects a stable credit environment for Asia-Pacific sectors amid solid AI demand and the reopening of the Strait of Hormuz, according to a Wednesday release.A drop in headline oil prices provides some relief to the region, which is a net energy importer, and offers upside growth potential, S&P's Asia-Pacific head of credit research, Eunice Tan, said.The region's issuers showed a net rating outlook bias of -2% as of May, improving from -3% in March, S&P said.AI demand anchors the region's tech and upstream electronics producers, with resulting growth offering a buffer against energy shocks, the rating agency said.However, second-order shocks could lead to a mixed recovery, with a slow turnaround in non-energy flows adding pressure on input costs and protracting disruptions for petrochemicals, agriculture, transportation, and manufacturing, Tan said.A notable decline in AI-related optimism or heightened geopolitical tensions could also quickly hit financing conditions, S&P said.

ASX 200Hang SengNikkei 225Shanghai Composite^SZSE
International

Australia Index of Commidity Prices Fall in June

Australia's commodity price index retreated in June, pulling back 2.2% on a monthly average basis in Special Drawing Rights (SDR) terms after a 1% gain in May, driven by weakness in non-rural and base metals subindices while rural commodities bucked the trend, according to a Wednesday report by the Reserve Bank of Australia.SDR, an international reserve asset created by the International Monetary Fund, is used by the RBA as a currency-neutral unit of account to measure the index. In Australian dollar terms, the index slipped 0.7% in June.Despite the June decline, the index has climbed 16.9% over the past year in SDR terms, with gains in gold, coking coal, and rural commodities more than offsetting weakness in liquefied natural gas (LNG) and alumina, while the index is up 8% in Australian dollar terms over the same period, the report added.A spot price measure of the bulk commodities index showed a monthly decline of 2.4% in SDR terms in June, though it remains 19.7% higher on a year-on-year basis, it added.

ASX 200
Asia

Australian Shares Decline; South32 Strikes $6 Billion Deal to Sell Aluminum Assets to Alcoa

Australian shares closed lower on Wednesday as investors reacted to pessimism around a potential peace deal after Iran said it would not meet US envoys.The S&P/ASX 200 Index declined 0.64%, or by 55.80 points, to close at 8,722.90.Brent crude oil futures rose 0.5% to $73.31 per barrel, while gold eased 0.4% to $3,990 per ounce.On the domestic front, Australian manufacturing activity improved modestly in June, with employment and inventories rising even as output and new orders continued to contract amid elevated costs, supply-chain delays, and uncertainty driven by Middle East tensions. The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Manager's Index (PMI) rose to 51.5 in June from 50.7 in May, signalling a third consecutive month of expansion in the sector.The Australian Industry Index continued to signal weakness in June, declining to negative 30 in seasonally adjusted terms, indicating a broad slowdown across industrial sectors, according to a report released by the Australian Industry Group.The number of dwelling approvals in Australia declined 1.1% in May from the previous month to 17,019 after edging 0.2% lower in April, according to seasonally adjusted data released by the Australian Bureau of Statistics.In company news, South32 (ASX:S32) struck a deal to sell its aluminum assets to Alcoa (ASX:AAI) for an implied enterprise value of as much as $5.6 billion. Under the deal, Alcoa will acquire South32's 86% interest in Western Australia-based Worsley Alumina, full ownership of Hillside Aluminum in South Africa, 33% stake in Brazil's MRN bauxite mine, 36% in Brazil Alumina refinery, and 40% in Brazil Aluminum smelter.Coles Group's (ASX:COL) proposed acquisition of a leasehold for a new supermarket and liquor site in the Kalgoorlie-Boulder area of Western Australia would materially harm competition in the retail groceries space, the Australian Competition and Consumer Commission (ACCC) said.Lastly, Magellan Financial Group (ASX:MFG) said it completed its merger with Barrenjoey Capital Partners Group after receiving overwhelming shareholder support at the extraordinary general meeting on April 10 and satisfying all regulatory approvals and closing conditions.

ASX 200ASX:AAIASX:COLASX:MFGASX:S32
Asia

ASX Midday Sector Update: Healthcare Stocks Advance, Consumer Staples Sector Struggles

Healthcare stocks advanced over 1% at midday Wednesday.CSL (ASX:CSL) gained nearly 3% in recent trade.Meanwhile, the consumer staples sector struggled, shedding nearly 3%.Woolworths Group (ASX:WOW) shares fell past 2% in recent trade.

ASX 200ASX:CSLASX:WOW
International

Australia Building Approvals Decelerate Further in May

The number of dwelling approvals in Australia declined 1.1% in May from the previous month to 17,019 after edging 0.2% lower in April, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS) on Wednesday.The decline was driven by a more than 10% fall in private dwellings excluding houses, following a 4% increase in April, the ABS said.Private sector houses rose 2.8% to 10,537, hitting the highest level since September 2021 and marking the fourth straight month with over 10,000 private sector houses approved.The value of total residential building fell 5.7% to AU$10.24 billion, while the value of total non-residential building jumped 41% to AU$10.83 billion.A breakdown by state showed May dwelling approvals in Queensland falling 8.8%, Victoria down 3%, and Western Australia declining 1.3%. Approvals in South Australia rose nearly 11%, Tasmania up 4.8%, and New South Wales posting a 2.2% increase.

ASX 200
Australia's Manufacturing Sector Expands in June Despite Weak Demand, Rising Prices
US Markets

Australia's Manufacturing Sector Expands in June Despite Weak Demand, Rising Prices

Australia's manufacturing sector expanded in June despite a continued decline in output and new orders amid market uncertainty and rising prices.The headline seasonally adjusted S&P Global Australia Manufacturing Purchasing Managers' Index rose to 51.5 in June from 50.7 in May, being above the no-change mark of 50 for the third consecutive month and at its highest level since January.S&P's report showed that Australian manufacturing firms increased their staffing levels while struggling to acquire new business amid reports that uncertainty and rising prices had limited demand.The fall in new orders and decline in production for the fifth consecutive month, albeit at a softer pace than before.Concerns over timely material supplies prompted manufacturers to increase input inventories in June. Pre-production stocks rose for the second time in three months, reaching their highest level since September, while purchasing activity edged lower.Hopes of improving geopolitics and stronger new orders have lifted confidence in the year-ahead manufacturing outlook, according to S&P, as sentiment rose to a four-month high in June but remained below pre-Middle East war levels.According to the Australian Bureau of Statistics, more manufacturing firms experienced supply chain disruptions in June compared to May, as ABS's June business conditions and sentiments survey showed that almost half of Australian businesses saw increased operating expenses.

ASX 200

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