Market Wrap / happy new year!

The S&P/ ASX 200 started FY26 on a flat note, down just 0.01% to 8541.1 points - despite a higher open on the back of US tailwinds. Locally, the financial sector reflected a contrasted market. CBA shed an additional 1.2% from its recent highs. NAB and ANZ went the other way. Insignia Financial jumped 5.2% after announcing CC Capital is "actively working towards making a binding bid" for the company. However, HMC Capital shed 17.3% as it deferred its acquisition of renewable energy assets by one month.In other company news, IAG downgraded its FY25 natural perils guidance by around $200 million, meaning the insurer lifted its FY 25 profit guidance. However the stock price remained fairly flat. Meanwhile, Medibank hit a record high on a broker update anticipating lower claims. And Mesoblast topped the charts on its US FDA progress for a heart failure drug.Looking ahead, data on housing and retail is due locally tomorrow.