Australia 200 afternoon report: 22 July 2025

The Australia 200 trades12 points (-0.14%) lower at 8656 as of 2:10pm AEST.

Australia 200 dips amidst big bank sell-off

Eager to make amends after yesterday’s sharp sell-off, the Australia 200 started the day on the ascent, recording a 46-point (0.53%) early gain before falling below the flat line as another round of heavy selling hit the big banks.

The substantial selling in the big banks this week has led the Australia 200 financial sector to fall 5.3% below the record high of 9676 reached in late June, putting it on track for its weakest daily close in seven weeks.

Theories behind big bank sell-off

There are various theories behind why the big banks have been sold off in the opening two days of this week. 

1. Stretched valuations prompting profit-taking
2. A rotation into mining stocks, which appear cheaper on many metrics
3. A reaction to global signals, such as investor Warren Buffett trimming holdings in United States (US) banks amid concerns about macroeconomic uncertainty linked to new tariffs and President Trump’s criticism of the Federal Reserve (Fed) and its Chair, Jerome Powell.

Australia 200 stocks

Banking sector

• Commonwealth Bank of Australia dropped 3.1% to $172.35, now trading $20 (10.35%) below its late June all-time high of $192
• National Australia Bank fell 2.7% to $37.22
• Westpac Banking Corporation slipped 1.86% to $32.45
• Australia and New Zealand Banking Group dipped 1.16% to $29.69
• Macquarie Group Limited declined 0.89% to $222.15

Mining sector

Evidence suggests capital is flowing from banks to the mining sector. 

Iron ore

Today’s gains for the miners were also supported by the price of iron ore on the Singapore Futures exchange, rising 0.5% to $104.05.

• Rio Tinto up 2.97% to $117.87
• Fortescue Metals Group rising 2.23% to $17.63
• BHP gaining 2.05% to $41.29, heading for its highest daily close since December 2024

Crude oil 

The European Union (EU) is reportedly exploring additional trade countermeasures against the US if an acceptable trade agreement cannot be reached by the 1 August deadline. Rising concerns over a trade war between the US and the EU weighed on the crude oil price, which fell 0.64% to $65.36. 

• Ampol Limited dropped 1.03% to $26.94
• Beach Energy Limited fell 0.73% to $1.36
• Woodside Petroleum declined 0.65% to $24.59
• Viva Energy Group Limited slipped 0.65% to $2.26

Gold

Simultaneously, EU-US trade war concerns boosted gold stocks.

• Resolute Mining surged 4.72% to $0.66
• Perseus Mining gained 4.25% to $3.68
• Evolution Mining rose 3% to $7.70
• Regis Resources added 2.80% to $4.42

Australia 200 technical analysis

After last Wednesday’s sell-off in the Australia 200 held above our 8530 - 8510 support zone, the index regrouped and surged to fresh record highs into the end of last week.

Providing the Australia 200 holds above short-term support at 8620 - 8600ish, coming from previous record highs, we expect the index to extend its gains towards 8850.

Be aware that a daily close below 8600 is an initial warning that last week’s break higher was a false break and that a retest of the late June 8420 low is underway.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 22 July 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}