May 7, 2026, 03:04 in Sydney (AEST)
Australian shares bounced back on Wednesday, ending a two-day losing streak as the S&P/ ASX 200 rallied 1.3% to finish at 8,793. Buyers piled into banks and miners, pushing the benchmark to its strongest performance in almost a month. The index, which tracks 200 of the country’s biggest ASX-listed firms, notched its best session in weeks.
That shift landed just a day after the Reserve Bank of Australia bumped the cash rate up by 25 basis points to 4.35%. The RBA pointed to fuel prices—rising on Middle East tensions—as a factor pushing inflation higher, and flagged “materially heightened uncertainties” for both growth and prices. Reserve Bank of Australia
Still, investors piled into risk. Brent crude slipped after hints of a U.S.-Iran deal, and that global move jolted equities upward from New York through Asia. “Buy everything” mode—that’s how Michael Brown at Pepperstone described the mood. Reuters
Financials picked up 2.4%. Miners were up 2.6%—metal prices stayed firm, and Chinese steel mills ramped back up post-May Day. The energy sector went the other way, down 2.1% as oil dropped again, with traders eyeing possible progress on an Iran deal.
Banks caught a strong bid. Commonwealth Bank picked up 2.96%, Westpac advanced 3.48%, and National Australia Bank tacked on 2.77%, market data show. BHP also moved higher, rising 3.05%.
The Australian dollar tracked the risk-on sentiment, jumping 0.7% to 72.34 U.S. cents as of 5:20 p.m. AEST. Iron ore added 1.7%, landing at $110.95 per tonne. Brent crude, meanwhile, slipped 1.4%, settling at $108.39 a barrel in the same snapshot.
Investors zeroed in on DigiCo Infrastructure after the company announced plans to offload its Chicago data centre for $750 million—a move aimed at chipping away at debt and bankrolling its Sydney expansion. Shares rocketed more than 25% at one stage. Ben Richards of Seneca Financial Solutions said the deal gave the market reason to trust DigiCo’s book value.
Shares of Infratil jumped after its CDC Data Centres arm landed a 555-megawatt contract with a U.S. investment-grade client—a deal the company described as the biggest data centre agreement ever signed in Australia. “This contract highlights Australasia’s appeal for international computing power,” CEO Jason Boyes said. Infratil
Losses hit JB Hi-Fi as shares slipped, with CEO Nick Wells flagging rising supplier component costs, stock shortages, and intensifying tech sector competition moving into the end-of-financial-year rush.
The set-up isn’t exactly sturdy. Oil’s reacted sharply to Iran news in the past—only to see the mood sour again. According to AP, Brent slid under $97 for a stretch, then snapped back over $100 after President Donald Trump threatened more intense bombing if Iran didn’t agree to a deal.
At the moment, the ASX rally signals that traders are wagering lower oil risk might balance out tighter rates in Australia. Still, it’s a tight squeeze. The RBA has warned that if Middle East tensions drag on or get worse, inflation could climb and domestic growth could take a hit.
