AUS
NZ
UK
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Highlights
Materials sector leads with strong gains from BHP, Rio Tinto and Fortescue
Reece plunges after guidance downgrade and board reshuffle
Super funds welcome removal of US tax clause affecting foreign entities
The Australian sharemarket traded higher through Friday's session, with notable strength in the materials and energy sectors. Major miners BHP Group Ltd (ASX:BHP), Rio Tinto Ltd (ASX:RIO), and Fortescue Ltd (ASX:FMG), which are part of the ASX 50, recorded significant upward moves, helping lift the ASX 200 index near its yearly high.
A positive lead from Wall Street provided early momentum, with optimism supported by easing geopolitical tensions and renewed interest in resource-heavy equities.
Energy Stocks Gain as Crude Oil Stabilises
Energy-related names also contributed to the index’s rise. Woodside Energy Group Ltd (ASX:WDS) and Santos Ltd (ASX:STO) traded in positive territory, while Ampol Ltd (ASX:ALD) gave back some early advances. Global crude prices saw a modest rebound after recent declines, following a ceasefire agreement between Israel and Iran.
Market participants appeared to respond favourably to signs of stability in global oil markets, with some ASX-listed energy firms benefiting from the sentiment shift.
Reece Shares Slide on Earnings Guidance and Board Exit
Bathroom and plumbing products supplier Reece Ltd (ASX:REH) declined after the company flagged a significant downturn in expected earnings. The announcement came alongside news that Ross McEwan would step down from the company’s board to focus on duties as chairman of BHP.
Reece attributed the forecast to ongoing macroeconomic headwinds, noting that trading conditions had not improved through the latter half of the financial year. Leadership expressed confidence in long-term strategy despite the current earnings challenge.
Financials Mixed as Banks Lag Behind
Banking stocks showed subdued performance during the session. Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation (ASX:WBC), Australia and New Zealand Banking Group Ltd (ASX:ANZ), and National Australia Bank Ltd (ASX:NAB) traded lower. Macquarie Group Ltd (ASX:MQG) outperformed its peers with a modest gain.
Investor sentiment in the financial sector remained cautious as focus shifted to domestic earnings outlooks and international policy developments.
Super Sector Relief on US Tax Clause Removal
Australia’s superannuation funds responded positively to news from the US, where a controversial clause in a proposed tax bill was dropped. The provision would have increased taxes on foreign institutional entities. Following negotiations with G7 nations, the clause was withdrawn, offering relief to Australian retirement funds with overseas exposure.
This development coincided with broader market relief as international trade and tax-related uncertainty eased.
Wall Street Climbs on Ceasefire Optimism and Tech Strength
Global equities advanced as major US indices approached record territory. The ceasefire agreement between key Middle Eastern nations and easing concerns over trade tariffs underpinned gains. Technology and growth-focused stocks continued to attract attention, with large-cap chipmakers and AI-related firms performing strongly.
