Australia's share market has clawed back some early losses to end the session flat despite oil trading at one-month highs as the US and Iran ramp up attacks in the Persian Gulf.
The S&P/ASX200 traded flat at 8,808.5 on Tuesday as the broader All Ordinaries slipped 1.7 points, or 0.02 per cent, to 9,001.3.
Energy and utilities stocks outperformed the market, while an uplift in gold, copper and iron ore futures helped support the raw materials sector following an early dip after US President Donald Trump threatened to levy tolls on ships passing through the Strait of Hormuz.
"The turnaround in materials looks more like hesitation after the early sell-off than a full recovery in confidence,” Vantage senior market analyst Hebe Chen told AAP.
Markets could face more volatility before reaching firmer ground, because neither the geopolitical risk nor the inflation outlook had reached a turning point.
“Tonight’s US CPI and tomorrow’s China GDP figures are the next pieces of the puzzle, but even supportive data may only calm the market rather than fully clear the storm,” Ms Chen said.
Woodside Santos, coal producers and refinery stocks charged higher as Brent crude rose to $US85 a barrel, up roughly 13 per cent since Friday.
Gold stocks helped lift the materials sector, as the precious metal firmed to $US4,027 ($A5,809) an ounce, lifting the sub-index 0.6 per cent.
Genesis Minerals and Vault Minerals each gained more than 1.6 per cent after announcing they would join forces to become Australia's third-largest gold producer in a $12.6 billion merger.
Mega miners were mixed, with BHP gaining 0.6 per cent to $58.71 and Rio Tinto down 0.3 per cent to $163.61, despite iron ore futures and copper prices rising to two and three-week highs respectively.
The heavyweight financials sector dragged on the exchange as the big four banks ran into profit-taking after performing strongly since early June.
Retail stocks were mixed, as Woolies and Coles led staples 0.8 per cent into the red, while discretionaries edged 0.4 per cent higher as Westpac and NAB's consumer and business confidence surveys ticked up in June.
In company news, Steadfast's shares improved after it announced an Amwins-led consortium had added KKR to its ranks in a $6.7 billion bid for the insurance broker, extending the group's deal exclusivity by four weeks.
Light & Wonder outperformed the top-200 with a more than eight per cent rally after reaffirming its 2026 financial year earnings guidance.
Endeavour shares sold off after the alcohol and hospitality giant ousted Oaktree chief winemaker David Bicknell as part of a broader restructure to exit its wine businesses.
The Australian dollar is buying 69.29 US cents, up from 69.28 US cents on Monday at 5pm.
After two ultimately flat days for the local bourse, investors will be closely watching US inflation data due overnight, while China's GDP data due Wednesday afternoon has the potential to impact local miners, still licking their wounds from a month of selling.
ON THE ASX:
* The S&P/ASX200 traded flat at 8,808.5
* The broader All Ordinaries lost 1.7 points, or 0.02 per cent, to 9,001.3
One Australian dollar trades for:
* 69.28 US cents, from 69.29 US cents at 5pm AEST on Monday
* 112.49 Japanese yen, from 112.41 Japanese yen
* 60.85 euro cents, from 60.76 euro cents
* 51.88 British pence, from 51.78 pence
* 119.78 NZ cents, from 120.28 NZ cents
