The Australian share market opened the session on a positive note, with the S&P/ASX 200 index climbing 21.10 points (0.23%) to 9,185.70 by 10:37 AEST. The broader All Ordinaries index also rose, gaining 29.50 points (0.31%) to 9,404.40. Investors appeared cautiously optimistic, though the market's advance was narrowly led by a handful of retail names, while technology and several earnings disappointments weighed on sentiment.
Retail giants Woolworths and Lovisa were the standout performers, providing the primary lift to the benchmark. Woolworths jumped 4.63% after reporting a robust full-year profit increase of 18.1%, with revenue up 3.6% and a 15% dividend boost. Lovisa surged an impressive 18.24% following its FY26 results, which showed revenue growth of 17.6%, net profit after tax up 10.7%, and the addition of 160 new stores. These results underscore the resilience of consumer spending despite broader economic uncertainty.
Gold miners also contributed to the positive tone, with Perseus Mining advancing 7.34% and Sandfire Resources gaining 7.20%, supported by gold prices holding near record highs at US$4,705.60 per ounce. The strength in bullion provided a tailwind for producers, although softer oil and copper prices tempered the broader resources rally.
On the downside, several high-profile names experienced sharp declines. Engineering firm Worley tumbled 11.71% after its underlying EBITA fell 11%, impacted by currency headwinds and disruptions in the Middle East. Domino's Pizza Enterprises dropped 8.57% as its FY26 loss came in larger than anticipated, while Flight Centre slid 7.79% amid ongoing results-season selling pressure. WiseTech Global also fell 5.41% as investors digested its FY26 result against an unresolved regulatory overhang from the ACCC.
The market's attention now shifts to the release of July CPI data, scheduled for 11:30 AEST. Economists expect headline inflation to ease to 3.2% year-on-year, down from 3.8% previously, largely due to base effects. However, the more policy-sensitive trimmed mean measure is forecast at 3.5%, slightly lower than the prior 3.6% but still well above the RBA's 2-3% target band.
The RBA's cash rate remains at 4.35%, and the August meeting minutes revealed a divided debate before a unanimous decision to hold. A softer-than-expected core inflation print could reinforce the case for patience, potentially allowing the central bank to maintain its current stance for longer. Conversely, a hot trimmed-mean figure would revive expectations of further rate hikes, which could pressure interest-rate-sensitive sectors and exacerbate the financials-versus-growth divergence.
Cross-asset movements are also being monitored, with the Australian dollar trading around 0.7165 against the US dollar, near its early-session level. Gold futures are up 0.24%, while WTI crude is down 1.81% and copper futures have slipped 0.23%. These moves suggest a mixed picture for commodity-linked equities.
Market strategists note that the current session reflects a selective risk-on environment, with the earnings season generating large two-way stock movements. The ability of the ASX 200 to break above the 9,200.30 level could signal a broadening of the rally, while a fall below 9,164.60 might trigger renewed caution. The key risk remains that headline inflation relief masks a stickier core, which would keep the RBA on high alert and markets on edge.
As the trading day progresses, investors will closely parse the CPI release for clues on the central bank's next move. The outcome could set the tone for the remainder of the week, influencing not only Australian equities but also currency and bond markets.
