The S&P/ASX 200 edged 0.2% higher to finish at 8,379 on Tuesday, surrendering part of its earlier gains as market sentiment softened following Iran’s denial of talks with the US. Washington postponed planned strikes on Iranian energy infrastructure by five days, citing talks with Tehran. However, Iran denied any negotiations, accusing the US of spreading misleading information that could distort global markets. Domestically, the manufacturing PMI fell to a five-month low of 50.1 in March 2026, while the services PMI contracted for the first time since January 2024, at 46.6. Meanwhile, the European Union and Australia sealed a free-trade deal, ending nearly a decade of talks to strengthen ties and uphold a rules-based order challenged by the Trump administration. Heavyweight mining stocks were among the top performers, namely BHP Group (3.4%), Rio Tinto (3%), and Fortescue (3.7%). In contrast, banking stocks led the declines, with CBA, Westpac, and NAB falling 1.1% to 4%.