Sydney, June 12, 2026, 17:30 (AEST).
- The S&P/ASX 200 jumped 1.98%, adding 170.80 points to end at 8,804.00. The All Ordinaries ended higher at 9,006.10.
- Miners drove the move higher, materials stocks jumped 3.7%. BHP added 3.5%, Rio Tinto gained 2.4%. Financials were also stronger.
- Markets are looking to the Reserve Bank of Australia’s June 16 policy decision. The cash rate stands at 4.35%.
S&P/ASX 200 finished the week almost 2% higher on Friday, closing at 8,804.00 after hitting an intraday high of 8,809.30, Google Finance data showed. The All Ordinaries gained 1.92% to end at 9,006.10. A drop in crude oil on Middle East peace hopes drove risk buying across the Australian market.
The rally was notable as the ASX 200 is the benchmark index for institutional equities in Australia, covering the 200 largest stocks on the Australian Securities Exchange by float-adjusted market value. That measure only includes shares open to public trade, so the ASX 200 is often seen as a major barometer for investor sentiment in top Australian companies.
Mining stocks led gains as investors picked up cyclical names. The materials sector climbed 3.7%, ABC News said, with BHP up 3.5% and Rio Tinto gaining 2.4%. Real estate, consumer cyclicals and financial stocks also ended higher. Oil prices fell, which lifted the broader market on hopes for lower costs and softer inflation, but energy shares lost ground.
Brent crude fell 2.2% to $US88.37 a barrel as of 4:35 p.m. AEST. U.S. stocks finished higher in the previous session, with the Dow Jones, S&P 500, and Nasdaq all up, ABC’s market snapshot showed. That left Australian investors with steadier leads after recent sharp swings linked to the Middle East conflict and shifts in oil.
Bulls say falling oil cuts the chance of drawn-out inflation and helps rate-sensitive names—banks, real estate and consumer stocks. Global X ETF strategist Justin Lin told ABC the recent price moves show investors seem more confident “the worst of the oil shock may be behind us.” That’s fueling the move back into miners and discretionary. ABC News
Bearish voices point out the rally is still tied to geopolitics and the direction of interest rates. Reuters said 42 out of 45 economists polled between June 5 and June 11 expect the RBA to keep the cash rate at 4.35% on June 16, though a handful still see one more hike by the third quarter with inflation sticky. “The chance of a move at the June meeting is very low,” NAB senior economist Taylor Nugent told Reuters. AMP’s My Bui said, “The RBA still has to hike further.” Reuters
ASX 200 isn’t looking especially cheap after Friday, but momentum is holding. The index closed at 8,804.00, still under its 52-week peak of 9,200.90, and sitting much nearer that high than the bottom of its 8,262.40 range. That keeps downside in view if oil rises, Middle East headlines break down, or the RBA takes a tougher tone. The next focus is the RBA’s June 16 statement, set for 2:30 p.m. AEST, with a press conference from the governor after. That could shake up forecasts for bank stocks, property names, and the Aussie dollar.
