Australian shares edged lower on Tuesday with the ASX 200 down 16.6 points, or 0.19%, to 8,942.80 at 10:51am AEST. According to Times of India, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9%, as optimism grew that Iran may still attend negotiations in Pakistan. The latest tension escalated after Iran said the Strait of Hormuz was 'completely open' on Saturday before reversing course following the US seizure of an Iranian-flagged vessel in the Gulf of Oman. President Trump told Bloomberg he's 'highly unlikely' to extend the ceasefire and said the Strait of Hormuz would remain blockaded until an agreement is reached.
Gold (XAU/USD) struggles to capitalize on the previous day's goodish rebound from the $4,737 area, or a one-week low, and attracts some sellers during the Asian session on Tuesday. The commodity slides closer to the $4,800 mark, though the downside seems cushioned as traders might refrain from placing aggressive directional bets amid continuing uncertainty over whether talks to end the US-Iran war will take place. Inflation fears support US bond yields, underpinning the USD and weighing on the commodity. The US Dollar bulls lack conviction amid diminishing odds for a rate hike by the US Federal Reserve (Fed), with the CME Group's FedWatch Tool indicating there is a roughly 45-50% chance of a Fed rate cut by the year-end, which should keep a lid on any meaningful USD appreciation and continue to act as a tailwind for the Gold.
Reports citing an Iranian official suggested Tehran was considering attending peace talks with the United States in Pakistan, but added that no decision had been made. Iranian Foreign Minister Abbas Araqchi stated that "continued violations of the ceasefire" by the U.S. are a major obstacle to continuing the diplomatic process. As reported by The Economic Times, market analyst Tony Sycamore attributed the session's "tame declines" to "traders balancing renewed geopolitical risks against persistent hopes that diplomacy could still deliver an extended or even permanent ceasefire deal." US President Donald Trump announced that US negotiators will travel to Pakistan for another round of negotiations with Iran, aiming to extend a fragile ceasefire that is set to expire on Wednesday. However, Iranian Parliament speaker Mohammad Bagher Ghalibaf said that Iran will not accept negotiations with the US while under threat, while Iran's Foreign Minister Abbas Araghchi said that continued violations of the ceasefire by the US are a major obstacle to continuing the diplomatic process.
Consumer staples (+0.38%) emerged as the strongest performing sector at the open, supported by Woolworths (+0.33%), Endeavour Group (+0.90%), Bega Cheese (+0.42%) and Graincorp (+1.27%). However, energy (-0.68%) remained the weakest performing sector for a second consecutive session, weighed down by Woodside (-1.13%), Santos (-1.06%), Yancoal (-1.67%) and Ampol (0.86%). According to Capital Brief, Hub24 (-7%) was the worst performing stock despite posting a 9% quarterly increase in platform inflows, while Lynas Rare Earths (-3.28%) fell despite reporting a 215% quarterly increase in gross sales revenue for FY26.
As reported by The Economic Times, tech stocks, which lost a whopping 28% in the March quarter, have advanced 15% so far in April. Real estate stocks have gained about 9% after plunging 17% in the prior three months. Market analyst Sycamore pointed to investors "taking opportunity" to rotate into sectors that were badly bruised in the first quarter. In the latest session, Vulcan Energy (+6.32%), Silex Systems (+3.48%), Zip (+3.38%) and DroneShield (+3.32%) were among the best performing stocks across the ASX 200 in early trade.
