After suffering steep single-day losses on Monday, Australia’s domestic sharemarket staged a notable rebound on Wednesday, clawing back most of its earlier decline as broad-based sector growth was supported by a global drop in crude oil prices tied to easing geopolitical tensions in the Middle East.
Nine out of 11 tracked market sectors posted gains by the close of trading, with only the technology sector edging 0.4% lower and the materials sector holding steady amid stagnant iron ore prices. The benchmark ASX 200 index climbed 99.4 points, or 1.17%, to settle at 8604.7, while the broader All Ordinaries index rose 1.08% overall. The Australian dollar dipped slightly to around 71.3 US cents amid concurrent strengthening of the US dollar.
Leading the session’s gains was the consumer staples sector, lifted after banking giant JPMorgan upgraded its rating on supermarket giant Woolworths. The upgrade pushed Woolworths shares up 3.7% for the day, pulling the entire sector upward alongside it. “The ASX200 has bounced back from yesterday’s poleaxing in a solid fashion, regaining a good chunk of the 105 points lost in yesterday’s demolition derby,” explained Tony Sycamore, a market analyst with international trading firm IG.
The drop in global oil prices that supported market sentiment came after former US President Donald Trump announced he would postpone a planned military strike on Iran, a decision made at the request of major Middle Eastern oil producers Saudi Arabia, Qatar, and the United Arab Emirates. Trump also confirmed that “serious negotiations are now taking place” with Iranian officials to de-escalate regional tensions, though Sycamore noted market analysts remain skeptical of a quick, lasting peace deal. “Frankly, we’re not overly convinced about the near-term prospects of a peace deal and suspect the motivation to hold fire stemmed from the weekend’s fresh drone attacks on the UAE and Saudi Arabia,” he added.
The de-escalation of geopolitical risk calmed global bond markets and pulled crude prices lower: international benchmark Brent Crude fell 1.3% on the day, while US West Texas Intermediate futures dropped 0.9%. For Australia’s materials sector, a concurrent slip in iron ore futures erased potential gains, leaving the sector flat overall. Mining giant BHP dipped 0.1%, Fortescue Metals fell 0.3%, and rare earths producer Lynas Rare Earths dropped 4.3%.
Notable outliers in the resources space included Perth-based Northern Minerals, whose shares surged 21.7% after the company confirmed it would comply with Treasurer Jim Chalmers’ order requiring Chinese investors to divest their stakes amid a months-long boardroom takeover conflict. Mineral Resources also posted a 2.6% gain after announcing it would restart its Western Australia-based lithium mine in response to recovering global lithium prices. Bellevue Gold added 2% after extracting the first batch of ore from its new high-grade Deacon North mine in Western Australia.
Across the financial sector, Australia’s big four major banks all recorded gains between 1.3% and 2%, while QBE Insurance climbed 2.9% and insurance broker Steadfast rose 3.7%. Real estate stocks also recovered from Monday’s broad sell-off: industrial property giant Goodman Group gained 1.8%, shopping centre operator Scentre Group added 1.4%, and diversified developer Stockland rose 3.1%.
In the telecommunications space, the sector as a whole climbed 2.7% to hit a six-month high. National carrier Telstra gained 2.6%, CAR Group rose 3.7%, and employment platform Seek added 3.4%. Infrastructure owner Tuas, which saw its shares crash 63% on Monday, rebounded 17.6% in Wednesday’s trading.
In corporate news, Geelong-based carbon fibre wheel manufacturer Carbon Revolution announced that creditors had approved a restructuring deal that will allow the firm to exit voluntary administration. The company, which was originally listed on the ASX before being delisted from the NASDAQ in February, produces lightweight wheels that deliver significant efficiency gains for heavy electric vehicles, but intense competition from Chinese EV manufacturers eroded its market valuation from a peak of AU$500 million to just AU$30,000 in recent years.