The local session started with a weak lead from futures despite a sharp rally on Wall Street driven by a preliminary US-Iran deal to reopen the Strait of Hormuz, which eased inflation fears and sent oil lower.
By the close, the benchmark ASX 200 had edged up 0.04% to 8,917.7 with just five of 11 sectors in the green.
Earlier, the index had dropped as much as 0.43% to 8,876 at the open before gradually recovering into the afternoon.
Investors spent the day weighing softer commodity prices and global risk appetite against the Reserve Bank of Australia’s latest interest rate call.
The RBA left the cash rate unchanged at 4.35% in a unanimous decision, a move widely expected by markets watching the 2:30pm AEST announcement.
Economists at major firms argued that sluggish growth alone will not be enough to justify cuts while underlying inflation sits above target and domestic cost pressures remain sticky.
Several macro strategists described the central bank’s stance as mildly hawkish, pointing to the board’s willingness to hike again later in 2026 if inflation fails to retreat.
Business groups welcomed the pause but stressed it does little to ease cost strains on companies and households, particularly those exposed to transport and fuel.
Beneath the flat headline number, stock-specific moves were sharp.
Karoon Energy slumped 11.6% after cutting its 2026 production outlook due to delays at its Who Dat Joint Venture, extending heavy morning losses that had topped 14%.
Gold producers moved the other way, riding a 2.08% jump in spot bullion to USD4,309 an ounce, with Catalyst Metals up 7.1% and Predictive Discovery gaining 8.1% on the ASX 200.
Bellevue Gold added 2.3% after confirming it remains on track to hit FY26 output guidance and all-in sustaining cost targets following a strong June quarter.
In energy, names like Woodside, Santos, Paladin and Nexgen Energy helped the sector rise about 1% at the open, rebounding from the prior session even as Brent crude dropped 4.95% to USD83 a barrel.
Corporate news and deal activity added another layer.
Swoop Holdings climbed 3.5% after securing a wholesale mobile virtual network operator agreement with TPG Telecom, up 1.1%, paving the way for Swoop’s Moose Mobile customers to migrate off the Optus network.
Atlas Arteria released a third supplementary target’s statement urging investors to reject a revised $5.10 per share on-market takeover offer from IFM Investors.
The toll road group argued the bid sits below the midpoint of Kroll’s independent valuation range and that the suitor is capable of paying more.
At the weaker end of the market, names such as IperionX, Alcoa Corporation and Netwealth Group joined Karoon among the worst performers in early trade.
Offshore, global moves framed the local session.
US equities extended their three-day winning streak, with the Dow Jones up 0.92%, the S&P 500 gaining 1.65% and the tech-heavy Nasdaq jumping 3.07%.
The Nasdaq’s rebound came as investors rotated back into growth and AI-related stocks after a brief pause in Wall Street’s record run sparked by Middle East tensions and profit taking.
SpaceX surged another 20% on its second trading day after a 19% pop on debut, closing at USD192 and lifting its market value by about USD412 billion, more than 42% above its USD135 IPO price.
In Europe, the FTSE 100 slipped 0.39% while France’s CAC 40 added 0.40% and Germany’s DAX rose 1.05%.
The preliminary US-Iran agreement to end hostilities and reopen the Strait of Hormuz is the key macro driver, knocking oil lower and reviving risk appetite.
Brent’s drop to its lowest level since the early stages of the conflict in March, alongside a 4.46% fall in US WTI to USD81.09 a barrel, is easing inflation expectations globally.
Fed funds futures still imply the US Federal Reserve will keep rates steady at its upcoming meeting, while CME Group’s FedWatch tool shows markets pricing in roughly a 42% chance of a 25 basis point hike by year-end.
Locally, the Australian dollar firmed 0.33% to 70.71 US cents and bitcoin gained 0.98% to USD66,
