ASX Surges as Trump Declares Ceasefire, Markets Cautiously Cheer, Virgin Australia Debuts Strong

Key Highlights:

• ASX 200 rises 1.11% to 8,568.7 amid hopes of Middle East de-escalation
• Trump posts “Complete and Total CEASEFIRE” between Israel and Iran
• Iran says no official ceasefire deal yet; warns retaliation will stop if Israel halts aggression
• Virgin Australia returns to ASX with $685M IPO
• Technology, financials, and materials drive market gains

Australian shares rallied on Tuesday, June 24, as easing geopolitical tensions and a high-profile IPO boosted investor confidence. The benchmark S&P/ASX 200 index climbed 93.8 points or 1.11% to close at 8,568.7, while the broader All Ordinaries advanced 1.13%.

Source: MarketIndex : Source Link: www.marketindex.com.au 

The market opened higher following U.S. President Donald Trump’s social media post claiming a “Complete and Total CEASEFIRE” had been reached between Israel and Iran, calming investor nerves after weeks of rising tensions.

Source: TruthSocial

However, Iran swiftly tempered expectations.

Iran Responds: Ceasefire Not Yet Final

Iranian Foreign Minister Abbas Araqchi, in a statement posted to X (formerly Twitter), clarified that no official ceasefire agreement had been reached as of now. He stated, “If Israel stops its illegal aggression against Iranians, then Tehran will not retaliate further.” Araqchi added that the final decision on the cessation of Iran’s military operations would be made at a later time.

This partial clarification added complexity to market sentiment, though risk appetite remained buoyant throughout the session.

Patrick Gibbons, partner at corporate advisory firm Orizontas and former Australian diplomat in Tehran, told ABC’s The Business, “Iran’s carefully worded response reflects strategic restraint, not surrender. They’re watching to see if Israel holds back.”

Energy Retreats, Risk Assets Rally

Crude oil prices dipped as fears of full-scale escalation subsided. Brent crude slipped 1.25% to $69.25 a barrel, while WTI crude lost 1.59%, trading at $66.16. The ASX Energy sector, highly sensitive to Middle Eastern developments, dropped 4.42%, with Woodside Energy (ASX: WDS) plunging 7.43% to $23.93.

Source: MarketIndex : Source Link: www.marketindex.com.au 

Meanwhile, Technology, Financials, and Materials led the rebound:

• Materials +1.86%
• Financials +1.79%
• Information Technology +1.79%
   

The ASX 200 Banks Index gained 1.92% to 4,058.0, while All Tech rallied 1.73% to 4,046.0.

Top gainers included:

• Collins Foods (ASX: CKF): +16.80% to $8.48
• Alliance Aviation (ASX: AQZ): +8.80% to $2.35
• Liberty Financial (ASX: LFG): +8.13% to $3.59
  
   

Losers included:

• Energy Resources of Australia (ASX: ERA): -33.33% to $0.002
• Karoon Energy (ASX: KAR): -9.45% to $1.89
• Electro Optic Systems (ASX: EOS): -11.11% to $2.32
  
   

Virgin Australia’s Triumphant Return to ASX

In one of the most anticipated listings of the year, Virgin Australia (ASX: VGN) made a strong comeback to the ASX with a $685 million IPO, relisting at $2.90 per share. The company had delisted during the pandemic-induced downturn in 2020.

Virgin CEO Jayne Hrdlicka stated during the official bell-ringing, “This is not just a relisting; it’s a rebirth. We’re a leaner, stronger airline ready for the future.”

Analysts welcomed the listing as a sign of confidence in post-COVID aviation recovery, while retail investors responded with heavy trading volumes in early sessions.

Global and Commodity Snapshot

Wall Street posted broad gains overnight:

• Dow Jones: +0.89%
• S&P 500: +0.96%
• Nasdaq: +0.94%
  
   

Gold edged lower by 0.77% to $3,342.44/oz, while silver declined 0.34% to $35.99/oz. The Australian dollar firmed 0.33% to 0.6481 USD, reflecting reduced demand for safe havens and rising appetite for risk assets.

Despite lower energy prices, ASX VIX remained at a low 11.2, signaling stable investor sentiment for the near term.

What Comes Next?

The market’s reaction suggests a strong desire to move past geopolitical risk, but analysts remain cautious. “This could be a fragile peace. One misstep could reignite volatility,” said Shane Oliver, Chief Economist at AMP Capital, on LinkedIn.

The next market catalyst will be the U.S. Federal Reserve’s policy guidance mid-week, alongside key inflation data from both Australia and the U.S.