Peace hopes, profits lift bourse

By the Editorial Team · Friday, August 7, 2026

The Australian sharemarket hit record highs for the second day as optimism over potential US-Iran negotiations and strong corporate earnings boosted investor sentiment. This upward momentum reflects hopes for reduced geopolitical risks, easing US interest rate concerns, and favorable sector performances, particularly in materials, healthcare, and mining.

The Australian sharemarket reached a new record high for the second consecutive day on Thursday, buoyed by optimism over a potential peace deal in the Middle East and strong corporate earnings reports. The benchmark S&P/ASX 200 index advanced 43.8 points, or 0.47 percent, to close at 9271.6, while the broader All Ordinaries index rose 46.6 points, or 0.5 percent, to 9452.

Positive sentiment was driven in part by renewed negotiations between the United States and Iran, which raised hopes for the reopening of the Strait of Hormuz, a critical shipping route. This contributed to a decline in oil prices, with Brent crude dipping below US$80 per barrel. Reports also surfaced of a deal between Iran and Oman to facilitate shipping through the strait, although Iranian officials cautioned that such an agreement does not guarantee immediate access, underscoring the complexity of the talks.

The improved outlook on Middle East peace prospects, coupled with weaker-than-expected US economic data—including softer private payrolls and services sector activity—lowered the likelihood of further US interest rate hikes. This dynamic boosted precious metals prices, with gold and silver climbing more than 4 percent overnight. As a result, gold mining stocks outperformed, with Northern Star Resources rising 3.26 percent to $22.19, Evolution Mining up 3.83 percent to $13.00, and Newmont gaining 3.7 percent to $148.83.

Materials and healthcare sectors led the broader market gains. Mining giants saw mixed movements: BHP rose 0.45 percent to $62.82, Fortescue Metals Group increased 1.43 percent to $18.45, while Rio Tinto experienced a marginal decline of 0.02 percent to $176.30. In healthcare, vaccines producer CSL advanced 1.3 percent to $132.36, with ResMed and Sigma Healthcare making modest gains.

Conversely, property, industrials, and utilities stocks faced downward pressure during the session. The Australian dollar weakened slightly, trading at approximately 70.42 US cents.

Corporate earnings also played a significant role in lifting market confidence. Media conglomerate News Corp reported a 15 percent increase in earnings before interest, tax, depreciation, and amortization (EBITDA) for the fiscal year 2026, reaching about US$1.63 billion (A$2.3 billion), driving its shares up 3.37 percent to $48.50. REA Group saw its revenue grow by 7 percent to $1.79 billion, with net profits after tax rising 15 percent to $650 million, excluding its India operations, boosting its stock by 3.43 percent to $172.03. Financial services firm AMP experienced a 57 percent surge in first-half profits, triggering a 5.96 percent gain in its share price to $2.31.

Market analysts noted that the blend of easing rate hike expectations, firmer earnings results, and geopolitical developments contributed to the robust performance of Australian equities on Thursday, while energy markets continued to monitor developments closely in US-Iran relations.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.