The S&P/ASX 200 (XJO) finished 16.2 points lower at 9,053.8, 0.38% from its session low and 0.18% from its high/low. In the broader-based S&P/ASX 300 (XKO) advancers lagged decliners by a disappointing 113 to 165.
Whatever President Trump hoped to achieve from his activities in the Middle East, it’s unlikely he foresaw this outcome: US 30-year bond yields tipped 22-year highs overnight.
FYI, US mortgage rates are often pegged to the 30-year bond yield because that bond’s duration is roughly similar to the average American’s mortgage duration. Make of that what you will…
US 30-Year T-Bond Yield chart
Health Care (XHJ) (+2.6%) extended its historic two-day surge into a third consecutive positive session — a remarkable statement of market conviction in a sector that had been largely written off through much of FY26. Yesterday’s simultaneous results beats from CSL, Pro Medicus, and Cochlear appear to have fundamentally reset the investment thesis for the sector, with fund managers now actively adding rather than trimming.
Today, Ebos Group (EBO) (+8.3%) added its own result-driven catalyst, posting a 9% rise in full-year underlying net profit to $423.8 million as its healthcare logistics and animal care divisions both outperformed. Elsewhere in the sector, CSL (CSL) (+5.5%) extended yesterday’s 17.3% surge — that is now a two-day gain of more than 23% for Australia’s most closely watched healthcare stock. Sonic Healthcare (SHL) (+2.3%) and Pro Medicus (PME) (+1.1%) both continued higher.
S&P-ASX 200 Health Care Sector Index chart
Energy (XEJ) (+0.8%) remained well-supported as ICE Brent crude futures gained 0.8% to US$91.69/bbl, holding above US$90 for a third consecutive session amid ongoing delay to the Oman-Iran Strait of Hormuz deal and a US threat to expand sanctions on Iranian oil buyers. Santos (STO) (+2.5%) was the standout oil and gas name, with Viva Energy (VEA) (+1.4%), Woodside Energy (WDS) (+1.2%), and Karoon Energy (KAR) (+0.8%) all advancing.
S&P-ASX 200 Energy Sector Index chart
Consumer Staples (XSJ) (+0.3%) benefited from defensive flows as investors sought non-cyclical earnings in a session defined by bond yield anxiety. Agricultural names were the outperformers — GrainCorp (GNC) (+2.7%) and Select Harvests (SHV) (+1.6%) led, while the supermarket majors provided modest support with Woolworths (WOW) (+0.6%) and Coles (COL) (+0.6%) both edging higher.
A super defensive session!
Information Technology (XIJ) (-3.1%) was the session’s most consequential loser in index terms, and the primary reason was WiseTech Global (WTC) (-8.7%) suffering its third major corporate governance setback since late June. New allegations against executive chairman Richard White’s conduct emerged in local media, extending what has become a multi-month soap opera that has now wiped more than 25% from the stock in aggregate.
The broader sector was also weighed by Life360 (360) (-6.9%) — still unwinding from last week’s poorly received quarterly — NextDC (NXT) (-5.6%), and Iress (IRE) (-5.6%), all of which fell as US benchmark 10-year Treasury yields hitting a 22-year high overnight compressed valuations for long-duration, high-P/E growth stocks with mechanical precision.
Real Estate (XPJ) (-1.1%) bore the full weight of the bond yield surge — when risk-free rates reach 22-year highs, the stable income streams of property trusts lose relative appeal by an equivalent and equally mechanical amount. Goodman Group (GMG) (-4.1%) was the heaviest drag by index weight, with GPT Group (GPT) (-2.1%), Charter Hall (CHC) (-1.6%), and Lendlease (LLC) (-1.4%) all lower.
Financials (XFJ) (-0.6%) extended their losing streak to eight out of nine sessions. Higher market benchmark yields affect the banks in two simultaneous and reinforcing ways — they raise the cost of new mortgage borrowing, further deterring demand in a market where applications are already down 15–20%, and they signal an environment of persistent inflationary pressure that makes the RBA’s next move more likely to be a hike than a cut.
Commonwealth Bank (CBA) (-1.2%), National Australia Bank (NAB) (-0.7%), and Westpac (WBC) (-0.6%) all declined. Judo Capital (JDO) (-5.1%) fell — appearing to give back a portion of yesterday’s 16.9% post-result surge without a confirmed new catalyst.
S&P-ASX 200 Financials Sector Index chart
Consumer Discretionary (XDJ) (-0.6%) was a market already on the back foot from JB Hi-Fi’s results assessment of the Australian consumer, and today it found a fresh stock-specific reason to sell. Temple & Webster (TPW) (-17.8%) collapsed after the online furniture and homewares retailer reported a swing to a full-year net loss, with revenue growth slowing sharply as the rate-driven housing market correction reduced consumer appetite for big-ticket home spending. Lovisa (LOV) (-4.2%) and Breville Group (BRG) (-4.2%) also fell.
Materials (XMJ) (-0.1%) finished marginally lower as a strong session for iron ore names offset broad-based weakness in base metals. COMEX copper fell 1.9% overnight and another 0.8% in Asian trade to US$6.456/lb.
Champion Iron (CIA) (+4.5%), Fortescue (FMG) (+2.1%), and Deterra Royalties (DRR) (+2.1%) were all firmly higher, iron ore stocks finding buyers despite SGX iron ore futures holding near recent levels. On the other side, Capstone Copper (CSC) (-1.8%), South32 (S32) (-1.2%), and Alcoa (AAI) (-2.0%) — the latter facing the double headwind of a softer aluminium price and elevated energy input costs — all retreated.
In commodities moves, GFEX lithium carbonate futures in China fell 3.0% to CNY 150,660/t, reversing recent gains and sending the sector’s recovery into a renewed wobble. Liontown Resources (LTR) (-4.6%), Wildcat Resources (WC8) (-3.7%), Pilbara Minerals (PLS) (-3.4%), Vulcan Energy Resources (VUL) (-2.2%), and Elevra Lithium (ELV) (-2.0%) all fell.
Rare earths and critical minerals stocks were also sharply lower — IperionX (IPX) (-7.9%), Arafura Rare Earths (ARU) (-6.8%), Brazilian Rare Earths (BRE) (-5.8%), Iluka Resources (ILU) (-2.3%), and Lynas Rare Earths (LYC) (-1.3%) all declined. COMEX gold futures fell 0.4% to US$4,402.60/oz and COMEX silver futures dropped 1.4% to US$63.16/oz — precious metals giving back recent gains alongside the broader commodity complex.
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