Australia 200 afternoon report: 24 June 2025

The Australia 200 trades  80 points (0.95%) higher at 8555 as of 2.00pm AEST.

Middle East developments drive Australia 200 to weekly high

The Australia (ASX) 200 has awoken from its Middle East melancholy today, soaring 99 points (1.1%) to a one-week high of 8679.1.

The rally followed a strong session on Wall Street overnight, spurred by Iran's pre-signalled retaliatory missile strike on a United States (US) air base in Qatar, which was followed by US President Donald Trump announcing a ceasefire between Iran and Israel. this morning.

Fed hints at potential rate cuts

Market sentiment was further supported by growing expectations that the Federal Reserve (Fed) may begin cutting interest rates sooner than previously anticipated.  

Ahead of Fed Chair Jerome Powell’s testimony tonight, where he is expected to reiterate a wait-and-see stance, Vice Chair Michelle Bowman became the latest voting Board member to suggest that the Fed could ease policy as soon as July if inflation remains well contained.

Australia 200 stocks

Aviation stocks

Virgin Australia, newly listed, opened at $3.14, which is 14% above its initial public offering (IPO) price of $2.90, giving the airline a market valuation of approximately A$2.32 billion. Further details regarding Virgin Australia's IPO and return to the ASX are provided here. 

Virgin now holds about 34.4% of the domestic market compared to Qantas at 37.5%. Additionally, Virgin has hedged most of its 2026 fuel needs with a Brent cap of $70 per barrel, even as Bain Capital's ownership stake decreases to 39.4%.

• Qantas rose 2.38% to $10.33, following a 7% overnight drop in Brent crude oil prices
• Virgin Australia traded at $3.14

Financial sector

Heavyweight banks led the rally, pushing the financials sector up 1.76% to a fresh record high of 9511.

• Westpac surged 2.66% to $34.31
• Macquarie gained 2.37% to $214.38
• National Australia Bank rose 2% to $39.65
• Commonwealth Bank of Australia hit a new record of $188.36 before easing to $187.84
• ANZ lifted 0.85% to $28.45

Materials sector

Iron ore miners added support after Rio Tinto announced plans to develop Hope Downs 2 with Hancock Prospecting.

• Fortescue rose 2.4% to $14.89
• Rio Tinto gained 2.4% to $104.26
• BHP added 1.94% to $36.33
• Mineral Resources climbed 1% to $20.67

Energy sector

Energy stocks plunged as crude oil fell 0.8% to $66.69 – around 15% below yesterday’s peak of $78.40.

• Woodside Energy dropped 7.66% to $23.87
• Beach Energy fell 4.38% to $1.31
• Viva Energy declined 3.24% to $2.08
• Ampol slid 2% to $25.38

Consumer stocks

• Collins Foods soared 18.8% to $8.63 after topping earnings expectations

Australia 200 technical analysis

After the Australia 200 hit a new record high of 8639 earlier this month, we noted that the relative strength index (RSI) was at its most overbought level since December 2023 (which was followed by a 4% pullback).

The 2.5% pullback since then into yesterday's 8421.1 low helped the index work off overbought readings and was very orderly, even begrudging, which indicates the move lower has been a correction rather than the start of an impulsive move lower.

In summary, provided the Australia 200 holds above support at 8420/8400 on a sustained basis, the view is that the correction from the 8639 high is complete at yesterday’s 8421.1 low and that a retest and break of the 8639 high will likely be forthcoming.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 24 June 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.}