Australian shares inched up 0.2% to 8,676 in early Monday trade, attempting to recoup losses from the previous session, with utilities, industrials, and financials providing the main support. Sentiment remained cautious, however, as U.S. equity futures came under pressure after oil prices rose in the wake of President Donald Trump’s rejection of an Iranian peace proposal aimed at ending the Middle East conflict and reopening the Strait of Hormuz.
On the domestic front, traders were focused on Tuesday’s Reserve Bank policy decision, with expectations tilted toward further monetary tightening following three rate hikes earlier this year, as inflation remains stubbornly high. In China, Australia’s key trading partner, January–August industrial profit data are due today, with PMI surveys scheduled in the coming days.
Among major names, the four big banks gained between 0.1% and 0.7%. In the resources sector, Northern Star Resources jumped 8.6% and Evolution Mining rose 1%. Underperformers included Technology One (-1.8%), Insurance Australia (-1.5%), HUB24 (-1.2%), and Lynas Rare Earths (-0.8%).
