Australian Shares Edge Higher as Utilities, Real Estate Shine

Key Highlights:

• S&P/ASX 200 up 0.19% to 8,558.4 (as of 12:08pm AEST)
• Utilities, Real Estate and Consumer sectors lead gains
• Materials, Telecoms and Industrials weigh on broader sentiment
• Gold prices rise, offsetting weakness in Resources
• Global markets buoyed by easing US-China trade war fears
  
   

Australia’s share market opened the new financial year on a positive note, with the benchmark S&P/ASX 200 index trading up 0.19% to 8,558.4 by midday Tuesday, July 1. Buoyed by strength in Utilities (+1.35%) and Real Estate (+0.97%), the local bourse followed Wall Street’s upbeat tone after the S&P 500 and Nasdaq closed at fresh all-time highs overnight.

“We started the session in the green, tracking gains from overseas markets, particularly the S&P 500’s strong finish,” said Betashares Chief Economist David Bassanese in a morning note. “Investor confidence remains fragile but supported by signs of progress on the US trade front.”

Source: MarketIndex

Sector Snapshot: Defensive Plays Shine

Eight of the eleven major sectors were in positive territory. Utilities led the charge, with investors favouring the traditionally defensive sector amid a cautious global backdrop. Real Estate stocks rallied 0.97%, supported by falling bond yields and expectations that the Reserve Bank of Australia could lower interest rates as early as August.

Consumer Discretionary (+0.69%) and Staples (+0.66%) also gained, supported by stronger-than-expected retail momentum during end-of-financial-year sales. According to ANZ-Roy Morgan, consumer confidence ticked higher for a second consecutive week to 87.2 points.

“Job vacancies are up and retail data is improving, which hints at resilience in household spending,” said ANZ economist Sophia Angala. “We believe expectations for RBA rate cuts in August and February 2026 should continue supporting sentiment.”

Meanwhile, Materials (-0.30%) and Telecoms (-0.07%) posted mild losses, with the former under pressure from softer copper and iron ore prices. The All Ordinaries Gold Index rose 1.03% to 11,676.5, tracking bullion’s rise to US$3,317.71 per ounce (+0.44%).

Source: ANZ-Roy Morgan Australia 

Market Movers: Big Gains in Education, Biotech and Uranium

Among notable mid-cap gainers, IDP Education (ASX: IEL) jumped 6.81% to $3.92, recovering from recent lows. Mesoblast (ASX: MSB) surged 6.65%, while Deep Yellow (ASX: DYL) advanced 4.79%, reflecting renewed interest in uranium amid energy diversification themes.

On the downside, HMC Capital (ASX: HMC) slumped 15.29% to $4.32 after disappointing FY25 guidance. 29Metals (ASX: 29M) fell 6.78% as copper prices edged lower. Mineral Resources (ASX: MIN) dropped 4.08% to $20.68.

Global Cues: Wall Street Hits Record as Trade Jitters Ease

Overnight, US markets extended gains with the S&P 500 rising 0.52% to a record 6,204.95, and the Nasdaq adding 0.47%. Investor sentiment improved as Canada backed away from a digital tax targeting US tech firms, reducing the risk of retaliatory tariffs. President Trump, meanwhile, hinted he may not extend the July 9 tariff deadline if “progress continues.”

“The removal of some trade uncertainty has helped fuel the quarter-end rally,” said Karen Friar, markets editor at Yahoo Finance. “Still, all eyes are on Friday’s US jobs report and the possibility of a September Fed rate cut.”

AUD Moves Higher, Oil Slips

The Australian dollar traded at 65.60 US cents, boosted by US dollar weakness. Brent crude slipped 0.48% to US$66.42, while WTI dropped 0.45% to US$64.81 per barrel. Gold and silver edged higher, supported by safe-haven demand.

Outlook: Tariff Talks, RBA, and Mid-Year Risk

As the market braces for the July 9 tariff decision and crucial US jobs data later this week, volatility remains in focus. AMP Chief Economist Shane Oliver noted, “While Trump appears to be stepping back from a full-blown trade war, uncertainties around tariffs and US debt sustainability could stir fresh volatility in August and September.”

“Nonetheless, with central banks pivoting dovish and equity earnings broadly resilient, we expect moderate gains into year-end,” Oliver added.

Final Take

With the S&P/ASX 200 last seen trading at 8,558.4, Australian equities continue to hold ground near all-time highs. Defensive sectors, upbeat consumer sentiment, and gold strength have offset global trade jitters and materials softness.

[Note: ASX market is still open at the time of writing.]