Daily Market Update: 16 June 2026

Sharemarket hits two-month high on Middle East peace deal

The Australian sharemarket surged to a two-month high after the US and Iran announced an interim deal to end hostilities and reopen the Strait of Hormuz, sending oil prices tumbling and easing inflation jitters. The S&P/ASX 200 (INDEXASX: XJO) advanced 110 points to 8914 – its highest close since mid-April – with seven of the 11 sectors stronger. Brent crude fell 4.3 per cent towards $US83.59 a barrel after closing last week at its lowest in more than three months, while the Australian dollar, a proxy for risk, climbed 0.5 per cent to US70.85¢. The peace agreement, set to be signed this week, paves the way to end a conflict that had disrupted the global economy and heightened market volatility since late February, with a resumption of oil flows through the strait expected to unwind the geopolitical premium priced into crude.

Miners and banks lead, energy lags

Materials led the gains as gold recovered to about $US4311.82 an ounce, with Newmont Corporation (ASX: NEM) up 6.8 per cent to $147.18, Regis Resources Limited (ASX: RRL) up 13.3 per cent to $6.63 and heavyweight BHP Group Limited (ASX: BHP) advancing 3.6 per cent to a record $65.18 as copper neared $US14,000 a tonne. Banks rose on an improved economic outlook, led by Commonwealth Bank of Australia (ASX: CBA), up 1.4 per cent to $161.79, while energy weighed as Santos Limited (ASX: STO) fell 8.1 per cent to $7.42 and Woodside Energy Group Limited (ASX: WDS) lost 5.7 per cent to $29.46 after rejecting bid reports involving Exxon Mobil Corporation (NYSE: XOM). In company news, Sigma Healthcare Limited (ASX: SIG) rose 6.4 per cent to $2.81 after abandoning a tilt at UK chain Boots, Vault Minerals Limited (ASX: VAU) jumped 14.7 per cent to $4.60 on upbeat gold guidance, ASX Limited (ASX: ASX) gained 2.6 per cent to $50.46 after settling an ASIC case for $20.5 million, and Accent Group Limited (ASX: AX1) rose 15.4 per cent to 75¢ after rebuffing a 65¢ offer from Frasers Group plc (LON: FRAS).

Global markets wrap

US stocks rallied on Monday after the preliminary US-Iran agreement eased inflation concerns and pushed oil prices lower. The S&P 500 (INDEXSP: .INX) rose 1.7 per cent, the Dow Jones Industrial Average (INDEXDJX: .DJI) gained 469 points to a record high, and the Nasdaq Composite (INDEXNASDAQ: .IXIC) surged 3.1 per cent for its best day since March 31. US crude fell 5 per cent, lifting fuel-sensitive names including United Airlines Holdings Inc (NASDAQ: UAL), up 3.9 per cent, Norwegian Cruise Line Holdings Ltd (NYSE: NCLH), up 3.7 per cent, and Carnival Corporation (NYSE: CCL), up 3.2 per cent, while the lower oil price also supported growth-oriented tech stocks. SpaceX (NASDAQ: SPCE) surged 19 per cent, extending gains after a record-breaking Nasdaq debut following the largest IPO in history, while Fox Corporation (NASDAQ: FOXA) tumbled 15 per cent after unveiling a $22 billion plan to acquire Roku Inc (NASDAQ: ROKU).