Donald Trump privately approves Iran attack as missiles strike Israeli hospital, IDF targets nuclear sites, kills second Hezbollah commander

Caution reigned on the Australian sharemarket on Thursday as investors saw America weighing the potential for direct conflict with Iran, and the Federal Reserve warned of meaningful inflation ahead for the world’s largest economy.

The S&P/ASX 200 edged down 7.5 points, or less than 0.1 per cent, at 8523.70, with seven of the 11 industry sectors declining. It’s the market’s third decline in a row, though the daily drops have been limited to 0.1 per cent or less.

The Australian dollar was trading 0.6 per cent lower at US64.69¢ shortly after 5pm AEST.

IG market analyst Tony Sycamore said the ASX traded “within a holding pattern for the fourth session this week as traders await to see whether the next stage of the Israel-Iran conflict will bring US military intervention or peace talks”.

“Even a surprise fall in employment in today’s labour force report failed to provide a spark,” he noted.

Australia’s economy surprisingly shed 2500 jobs in May, though unemployment held steady as fewer people sought work, bolstering the case for the Reserve Bank to reduce interest rates further. Economists had expected a 21,200 rise. The jobless rate held at 4.1 per cent, data from the Australian Bureau of Statistics showed.

Read the full market wrap from today here.