Australia’s share market is on track to finish a volatile week where it began, after equities rebounded on reports that the US and Iran will extend a fragile ceasefire to finalise a lasting peace deal.
The S&P/ASX200 rose 80.8 points by midday on Friday, to be up 0.94 per cent, at 8,637.7, as the broader All Ordinaries gained 89.1 points, or 1.01 per cent, to 8,908.7.
“The US and Iran are reportedly on the cusp of a deal to extend the ceasefire for another 60 days, with the agreement said to include a toll-free re-opening of the Strait of Hormuz,” Capital.com senior market analyst Kyle Rodda said.
“The move in oil prices was negligible, suggesting a peace premium is all but priced-in into the market – setting up the markets for big disappointment if this purported deal proves to be another false dawn.”
Wall Street indices surged to fresh record highs overnight, buoyed by geopolitical developments and softer-than-expected US economic data, which kept hopes of Federal Reserve interest rate cuts alive.
“The markets are as bullish as they’ve been since the start of the war, with risk appetite amply whetted,” Mr Rodda said.
Brent crude tumbled to six-week lows overnight to trade at $US92.34, dragging on local energy oil and gas giants Woodside and Santos, which dipped one per cent and 0.6 per cent respectively.
Refinery operators Ampol and Viva sold off, along with coal miners, while uranium stocks rebounded from recent weakness.
Industrials advanced as Qantas and Virgin Australia soared more than two per cent each on the prospect of easing jet fuel prices, while Transurban, Brambles and Computershare also improved.
Mining stocks continue to see-saw on the whims of the US-Iran conflict, the basic materials sector bouncing 2.4 per cent on Friday morning and on track for a positive week.
Mega miners BHP, Rio Tinto and Fortescue each pushed higher, despite iron ore futures slipping to six-week lows on growing concerns of a supply glut and softer-than-expected steel demand from China.
The gold price firmed to $US4,535 ($A6,331) an ounce, boosting the commodity’s local sub-industry 4.7 per cent.
The heavyweight financials sector improved by 0.4 per cent, led by rebounds of similar magnitudes from ANZ and NAB.
Commonwealth Bank shares rose 0.2 per cent by lunchtime to $161.80, roughly 18 per cent from all-time highs but clear of 2026’s $146.98 low.
Real estate stocks surged 1.3 per cent and are on track for a positive week, while discretionary retail added 0.7 per cent.
The Australian dollar was buying 71.61 US cents, up from 71.22 US cents on Thursday at 5pm.