ASX 200 futures were up 52 points or 0.62% as of 8:30 am AEST, suggesting a firmer open for Australian shares. The positive start follows a relatively subdued session on Wall Street, where major indices closed slightly lower amid mixed corporate earnings and ahead of this week’s G7 meeting.
The uptick also follows the Reserve Bank of Australia’s decision to cut the cash rate by 25 basis points to 3.85%, aiming to stimulate economic activity amid ongoing global uncertainty.
ASX performance and small caps
The ASX 200 closed 6% higher on Tuesday, buoyed by gains in the energy and materials sectors. Today’s futures suggest continued optimism, potentially influenced by forecasts of further rate cuts this year.
The 10-year Australian bond yield eased 8 basis points on Tuesday to 4.39%, with traders pricing in a 66% chance of the RBA will lower rates three more times this year to take the cash rate to 3.1%.
Catapult, James Hardie and Web Travel Group are releasing earnings today. Adriatic Metals is in early takeover talks with Dundee Precious Metals, and Santos is moving ahead with its Narrabri gas development following a positive Native Title ruling.
In small caps today:
- Yandal Resources Ltd has confirmed the continuity of broad zones of gold mineralisation at the Siona Discovery within the New England Granite target area.
- Antipa Minerals Ltd announced an updated mineral resource estimate (MRE) of 2.5 million ounces of gold for its 100%-owned Minyari Project in Western Australia’s Paterson Province, a 100,000-ounce increase. The MRE also includes copper, silver and cobalt.
- Sovereign Metals Ltd entered into a memorandum of understanding with Electricity Supply Corporation of Malawi to secure long-term grid power supply for its Kasiya Rutile-Graphite Project.
- Lanthanein Resources Ltd announced it has appointed Peter Pawlowitsch as a non-executive director and chairman.
Wall Street wrap
The major US stock indices experienced slight declines on Tuesday, as recent rally momentum slowed. The S&P 500 was down 0.4% to 5,940.46, the Dow Jones fell 0.3% to 42,677 and the Nasdaq dipped 0.4% to 19,143.
The downturn was driven by losses in major tech stocks, with Alphabet and Amazon each down more than 1% and Nvidia falling by about 0.9%. Tesla was the exception among the ‘Magnificent Seven’ tech stocks, gaining 0.5% following CEO Elon Musk’s announcement that he would reduce political spending and remain Tesla’s head for the next five years.
US investors were also digesting mixed earnings reports, notably from Home Depot, which reported a revenue beat but softer earnings per share. The company reaffirmed its fiscal-year 2026 guidance, easing some tariff and consumer concerns.
Investors are also eyeing the upcoming G7 meeting for potential developments in global trade relations. Despite the Moody’s downgrade, overall market sentiment remains relatively stable, supported by strong corporate earnings and a truce in US-China tariffs.
However, the Republicans’ new tax-and-spending bill, which Moody’s cited in its downgrade as potentially adding trillions to the US debt, has raised concerns in the bond market. The 10-year US Treasury yield rose to 4.479%, while the 30-year yield increased to 4.967%.
Commodities and currencies
Gold prices rose 2.33% to US$3,297.34 as investors sought safe-haven assets amid global economic uncertainties, including the Moody’s US credit downgrade. Goldman Sachs now expects the price to top US$3,700 by the end of 2025 and US4,000 by mid-2026.
The Australian dollar weakened against the US dollar, reflecting expectations of further RBA cuts.
Other moves in commodities and currencies:
- Copper was up 0.45% to US$4.6562 per pound
- WTI oil was down 0.21% to $62.56 per barrel
- AUD/USD: 0.642, down 0.57%
Looking ahead
Investors will be closely monitoring the upcoming G7 meeting for insights into global trade policies and economic cooperation. Attention will also be on the RBA’s meeting minutes for indications of future monetary policy directions and on its latest economic chart pack, as well as monthly wage data from the Australian Bureau of Statistics.