Australian Stocks Decline Following Cancellation of US-Iran Peace Negotiations
Australian Shares Fall as Investor Appetite for Risk Assets Weakens
April 13 (Reuters) - The Australian market experienced a decline on Monday, with miners outweighing gains in energy stocks, as investor appetite for risk assets weakened following the breakdown of peace talks between the U.S. and Iran and the U.S. Navy's preparation for a blockade of the Strait of Hormuz.
The S&P/ASX 200 index declined by 0.4% to 8,925.60 by 0038 GMT after a 4.4% gain last week. Markets remained on edge due to the uncertainty surrounding the end of the U.S.–Iran war, with weekend talks ending without a breakthrough. U.S. President Donald Trump later stated that he believed Iran would continue negotiations.
Energy stocks were one of the two advancing sectors, rising 3.3% after oil prices jumped above $100 a barrel. Woodside and Santos climbed between 2% and 3%. Viva Energy shares rose more than 4%, despite the company flagging a $17.5 million impairment charge after a regulatory review.
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Gold stocks, however, slumped 3.5%, dragging down the broader mining index 0.9%, as bullion prices fell more than 2%, pressured by a stronger U.S. dollar. Evolution Mining and Northern Star Resources fell more than 4% each.
Financials slipped 0.2% after a four-session rising streak, with the big four banks down between 0.2% and 1.1%.
| Sector | Previous Week | Current Week |
|---|---|---|
| Energy | 2.6% | 3.3% |
| Gold | 1.5% | -3.5% |
| Financials | 1.1% | -0.2% |
| Consumer Discretionary | 0.9% | -1.0% |
| Real Estate | 0.3% | -0.3% |
Consumer discretionary and real estate stocks lost 1% and 0.3%, respectively, due to the Middle East war raising inflation risks and clouding the cash rate outlook.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Among individual stocks, Monash IVF jumped 16.5% after receiving a higher buyout offer from a consortium. In New Zealand, the benchmark S&P/NZX 50 index fell 1.1% to 13,032.28. Shares of a2 Milk dropped 17.3% after the company cut its fiscal 2026 profit forecast, citing temporary supply chain disruptions affecting the availability of its China-label infant milk formula. Fonterra shares rose 7.2% after the company appointed a new chief executive.
Investor Takeaway
Investors should be cautious of market volatility due to geopolitical tensions.
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