Topic: Stock Market

Australian shares have fallen while DroneShield is being investigated by ASIC over disclosures and share trading in 2025.

Overnight, Wall Street edged to fresh records, with the S&P 500 notching another closing high as chipmakers rallied, even though most stocks in the index fell.

Oil prices rose after another setback in efforts to end the US-Iran war, keeping concerns about the Strait of Hormuz, fuel costs and inflation in focus.

Locally, the federal budget looms, with investors awaiting news on tax changes.

Follow the day's financial news and insights from our specialist business reporters on our live blog.

Disclaimer: this blog is not intended as investment advice.

Live updates

Key Event

By Lin Lin

Figures correct as at 10:30am AEST.

Choose what information you see below by using filters

All

16

Key Events

7

Investment

2

Shares

6

Tax

2

Technology

1

War

4

Australians

2

Economy

1

Interest Rates

1

RBA

1

Fuel

2

Energy

3

Iran

4

Markets

2

Results

1

Housing

2

All filters

By Lin Lin

Australian businesses are being squeezed by higher costs after the Middle East conflict, with purchase costs jumping sharply in April, according to the latest NAB Business Survey.

Costs rose 4.5% in quarterly terms, much faster than the 1.8% rise in final prices businesses charged customers.

That essentially means many businesses are absorbing part of the cost increase rather than fully passing it on, putting pressure on profit margins.

Business confidence improved slightly but is still very weak at -24 points.

Business conditions fell again and are now at their second-lowest level since 2020, pointing to a possible slowdown ahead.

The survey also shows forward orders, investment, cash flow and employment have all weakened, while access to credit is getting harder.

By Lin Lin

Australia's corporate regulator, ASIC, says an investigation is ongoing in relation to DroneShield.

ASIC is unable to comment further while the matter is under investigation.

DroneShield makes technology that essentially helps militaries, governments and security agencies detect, track and stop drones, including in sensitive places like airports, infrastructure sites and conflict zones.

The company became popular with retail investors as demand for anti-drone technology grew, partly because of the increased use of drones in the war in Ukraine.

But that momentum came to a sudden halt in early November, when the company revealed that then-chief executive Oleg Vornik had sold almost $50 million worth of shares over several days, with limited explanation at the time.

Vornik later said the sales were to help cover a tax bill and fund renovations to his home.

DroneShield's shares have plummeted more than 10% on the news of the ASIC investigation.

Key Event

By Lin Lin

DroneShield has told the market it is being investigated by ASIC, Australia’s corporate regulator.

The company says ASIC has asked it to provide assistance with an investigation into announcements and information given to the ASX between November 1 and November 20 last year.

ASIC is also looking at trading in DroneShield shares between November 6 and November 12.

DroneShield says it will cooperate fully, and stresses it is not yet clear what action, if any, will come from ASIC’s investigation.

Key Event

By Lin Lin

The ASX 200 has begun the morning trading down by 0.3%.

Basic materials led the gains, while healthcare stocks were the main drag in the opening minutes.

Take a look below.

In the first 20 minutes of trade, 129 stocks were in the red, 67 were rising and four were unchanged.

Here are the bottom movers.

CSL continues to lose momentum after a near 20% drop yesterday after it downgraded its FY guidance and revealed an extremely large impairment charge.

Meanwhile, Emerald Resources and Genesis Minerals lead the gains.

Key Event

By Lin Lin

The ASX 200 has opened for trade basically flat at 8,697.

The broader All Ordinaries index also flat to the downside at 8,939.

I'll have more updates for you in a bit!

By Lin Lin

ANZ-Roy Morgan Consumer Confidence fell 3.1 points to 64.1 after the RBA raised interest rates by 0.25 percentage points.

That is now the fourth-lowest reading in the survey’s 50-year history, showing households are feeling very gloomy.

The biggest pressure is on family finances.

Only 14% of Australians say they are better off than a year ago, while 56% say they are worse off.

People are also worried about the future, with more Australians expecting their finances to get worse over the next year.

Confidence in the economy over the next five years also weakened, with only 6% expecting good times ahead.

And spending intentions also slipped, with just 13% saying now is a good time to buy major household items.

ANZ economist Sophia Angala commented:

While household spending data for March suggests higher fuel prices in the month had not yet dampened consumer spending, consumer confidence at a record low points to softer consumer demand ahead.

Key Event

By Lin Lin

Oil prices rose sharply, with Brent crude closing above $104 a barrel and US crude near $98, after US President Donald Trump said the ceasefire with Iran was on 'life support'.

Trump rejected Iran's latest counterproposal to end the conflict, while Israeli Prime Minister Benjamin Netanyahu warned the conflict was 'not over'.

Both Brent and US crude are up more than 40 per cent since the US and Israeli-led war against Iran began on February 28.

The big market fear is that tensions could keep disrupting energy supplies, especially through the Strait of Hormuz, a critical route for global oil shipments.

By Lin Lin

Morningstar cut its long-term revenue and profit forecasts for the health giant, saying it is hard to justify strong growth when CSL’s sales momentum is weak.

The financial research firm also says 'there is much to do to turn CSL around', and that hiring a credible new CEO with a clear vision will be important.

Meanwhile, RBC Capital Markets and Jefferies also lowered their price targets on the company this morning.

CSL's shares are down close to 42% year to date.

By Lin Lin

Analysts at RBC, a major global investment bank, said in a note this morning that CSL's guidance downgrade revealed yesterday was 'worse than anticipated' even though the company's turnaround efforts appear to be working.

Shares in the health giant tanked on Monday, with the stock closing 16 per cent lower, at $100.75.

The global blood products and vaccine maker warned it would book an additional $US5 billion ($6.9b) impairment charge in its results for the current financial year, writing down the value of some of its product portfolio, as well as 'under-utilised property, plant and equipment'.

RBC noted that the problem was that the financial benefits were taking longer to show up, while pressure continued in key areas like immunoglobulin products and albumin in China.

RBC also points to a further roughly $5 billion non-cash impairment linked to Vifor, the major acquisition that has become a major headache for CSL.

Management believe CSL's growth initiatives are working; however, the financial benefits will take longer to materialise.

Key factors impacting the revised guidance include the normalisation of channel inventory within US immunoglobulin, market value declines within albumin in China as well as impacts from the Middle East conflict.

Key Event

By Lin Lin

The S&P 500 closed above 7,400 for the first time, helped by gains in major tech and chip stocks.

The Nasdaq also edged higher, with both indexes finishing at record highs.

Investors largely looked past fresh worries over the US-Iran conflict, even as oil prices jumped after US President Donald Trump rejected Iran's latest proposal to end the war.

The market's mood still seems to be that AI and tech optimism are strong enough to offset concerns about higher energy prices, at least for now.

Here is NAB's read on the current market situation:

Geopolitics has been the dominant theme for markets at the start of the new week.

President Trump's blunt dismissal of Iran's latest proposal as a 'piece of garbage,' renewed doubts over a US-Iran ceasefire, pushing oil prices higher and placing upward pressure on global yields.

Despite this, equity markets remained resilient, credit spreads were stable and FX moves modest, highlighting that markets continue to treat Middle East risks as elevated but with the hope a resolution will be reached soon.

By Lin Lin

Treasurer Jim Chalmers is speaking this morning, saying tonight's budget will be the government's most ambitious and 'more than the usual amount of savings and more than the usual amount of reform'.

You can keep up to date with all the latest developments from our colleagues at Parliament House.

Key Event

By Lin Lin

Top US CEOs including Apple's Tim Cook and Tesla's Elon Musk will travel with Donald Trump to China this week.

Trump is set to meet Xi Jinping, with trade, tariffs, Taiwan, Iran and access to advanced AI chips all likely to be on the agenda.

The trip comes after the US and China agreed to a one-year trade truce, but tensions remain high.

Many major US tech and manufacturing companies still rely heavily on China, making them exposed to any fresh fallout between Washington and Beijing.

By Lin Lin

Housing policy has been a focal point of Australia’s intergenerational fairness debate for years.

With younger voters wielding significant political power, the government is preparing to revisit long-standing tax concessions, including negative gearing and the capital gains tax discount.

Read ABC chief business correspondent Ian Verrender's analysis of why Treasurer Jim Chalmers will rein in the property free-for-all in this year's federal budget.

By Lin Lin

Tonight's budget could touch everything from cost of living to housing, fuel security and defence.

The government has already flagged some major measures.

By Lin Lin

Good morning and welcome to ABC's finance and business live blog.

Australian shares are set to open slightly higher, helped by another positive session on Wall Street.

The S&P 500 finished slightly higher overnight, notching another record closing high, helped by gains in chipmakers — though most stocks in the index actually fell.

Oil is also in focus after President Donald Trump dismissed Iran's response to a US peace proposal, causing crude prices to rise and stoking concerns that a prolonged conflict will keep putting upward pressure on inflation, particularly at the fuel pump, where consumers are feeling the pinch.

Today, all eyes are on the federal budget, which will be unveiled this evening.

We'll also get a read on consumer confidence for May from Westpac, while NAB releases its April business confidence and conditions survey.

Grab a coffee or tea.

Pinned

Key Event

Key Event

Key Event

Key Event

Key Event

Key Event

Top Stories

Analysis by Ian Verrender

Topic: Housing Policy

Topic: Federal Government

LIVE

BREAKING

Just In

Topic: Unrest, Conflict and War

Topic: Motor Sports

Topic: Courts

Topic: Tennis