2026.06.1901:59:03UTC+00Australia Shares Retreat But Weekly Gain Still in Sight

Australian shares fell 96 points, or 1.1%, to 8,815 by midday Friday, extending the previous session’s decline and pulling back further from a two-month high, as weaker commodity prices pressured mining stocks. U.S. equity futures were mixed after overnight gains on Wall Street, where the S&P 500 and Nasdaq advanced on the back of tech sector strength and optimism over a potential U.S.-Iran agreement, even as concerns about a hawkish Federal Reserve persisted. BHP Group slid 3.7% and Rio Tinto dropped 3% amid softening iron ore prices, with lower energy and freight costs squeezing margins against the backdrop of subdued Chinese demand. PLS Group tumbled 5.3%, Mineral Resources retreated 4.3%, and Xero declined 2.5%. Three of the four major banks eased between 0.6% and 0.8%. Despite Friday’s weakness, the market remains on track for a second straight weekly gain, up about 0.2% so far, underpinned by the Reserve Bank’s pause on interest rate hikes and an easing in geopolitical risks.