The Australia 200 trades 6 points (-0.07%) lower at 8750 as of 2.25 pm AEST.
Rio Tinto’s earnings weigh on Australia 200
The Australia 200 (ASX 200) started today much as it did on Tuesday, falling 55 points (-0.62%) to a low of 8701 before dip buyers emerged, with just a touch of month-end window dressing thrown in for good measure.
The early falls came courtesy of the big miners. Rio Tinto’s earnings report was released after the market closed yesterday, showed the following results:
Underlying earnings: fell 16% to $4.8 billion in the first half (H1) of 2025 from $5.8 billion a year earlier, marking the lowest first-half profit since 2020, following a decline in iron ore prices
Reduced interim dividend: $1.48 per share, down from $1.77, marking its lowest dividend in seven years.
Economic data sets the stage for recovery
Setting the platform for today’s rebound was the release of robust activity data for June, which has admittedly resulted in the probability of an August Reserve Bank of Australia (RBA) interest rate cut easing marginally.
Retail sales surged by 1.2% month-on-month (MoM) in June, driven by discounting and pushing the annual rate to 4.9%, the highest growth rate seen since March 2023. Building approvals data for June were also stronger than expected, rising by 11.9% MoM from 1.2% prior. This was the strongest gain since May 2023, driven by a large rise in private sector dwellings excluding houses.
Australia 200 poised for a positive July finish
The month of July has again lived up to its reputation for being a good one for the Australia 200. As it enters the home straight, it is poised for a 2.45% gain for the month and on track for a fourth straight month of gains. This is made more memorable by its 1580-point (22%) rally from its early April 7169.2 low.