Australian shares rose 0.6% at the open, driven by gains in banking, insurance, and property stocks, poised to end a two-day losing streak following a hotter-than-expected May CPI print. Treasurer Jim Chalmers approved ANZ’s proposal to acquire Suncorp Bank, subject to conditions. Suncorp will retain its Queensland-based insurance operations and plans to return most of the bank sale proceeds to shareholders by Q1 2025, pending further regulatory approvals.

Nathan Zaia, banking and insurance analyst at Morningstar, noted the deal could be mildly accretive but may present challenges, potentially adding 5% to ANZ Group’s profits. Suncorp shares rose 3.6% to $17.42, while ANZ gained 0.8%. IAG shares surged 8% to $7.25 after announcing a major reinsurance deal and confirming 2024 earnings guidance.

Conversely, Guzman y Gomez shares dropped 5.6% to $28.56 as traders struggled to value the high-growth retailer. Lithium miners, including Mineral Resources and Pilbara Minerals, extended losses amid falling prices.