ASX 200 futures were down 82 points, or 0.98%, as of 8:30 am AEST, following a global bond selloff that roiled equity markets overnight.
The S&P/ASX 200 closed 43.5 points higher on Wednesday, gaining 0.52% to record its strongest finish in three months.
Driving the rally was a sharp rise in gold stocks, which surged 5% following an overnight rebound in the gold price. Among the standout performers, Adriatic Metals Ltd soared 25.3%, Predictive Discovery Ltd added 10.4%, and Perseus Mining Ltd climbed 9.7%.
The market was broadly positive, with all but two major sectors advancing. Consumer Discretionary slipped 0.16%, while Industrials dipped 0.52%.
However, some company-specific results weighed on individual stocks. Nufarm Ltd plummeted 30.1% after posting results that failed to meet investor expectations, while James Hardie Industries plc declined 6.2% following its own disappointing earnings update.
In small cap news, the S&P/ASX Small Ordinaries (XSO) gained 0.34% yesterday to 3,169.10, but is 0.35% down over the past five days.
Wall Street slumps on surging yields; ASX set to open lower
United States equity markets recorded their sharpest one-day losses in a month on Wednesday, with rising bond yields and fiscal concerns driving broad-based declines. The Dow Jones Industrial Average plunged 817 points or 1.9%, the S&P 500 lost 1.6%, and the Nasdaq Composite dropped 1.4%.
Investor sentiment was shaken by weak demand at a US$16 billion auction of 20-year Treasury bonds, which cleared at a yield of 5.047%. This renewed concerns about the United States’ rising debt levels, especially amid ongoing negotiations in Congress over a new budget bill. The 10-year Treasury yield rose 12 basis points to 4.60%, while the 2-year yield added 5 basis points to 4.02%.
Technology heavyweights led the sell-off, with Apple and Amazon each down more than 1%. Nvidia lost 1.9% and Meta Platforms edged 0.3% lower, though Alphabet bucked the trend, rising 2.8%. UnitedHealth fell 5.8% following reports of undisclosed bonus payments to nursing homes, and Target slid 5.2% after slashing its full-year guidance amid weaker discretionary spending.
European markets hold ground as inflation and defence spending dominate
European sharemarkets were largely steady, with the continent-wide FTSEurofirst 300 index easing just 0.1%. Broader gains offset weakness in the retail sector, where stocks fell 0.8%. London’s FTSE 100 rose 0.1%, aided by modest gains in energy and financial stocks.
UK inflation rose to 3.5% in April, exceeding expectations and marking the highest reading since January 2024. The data tempered hopes of imminent interest rate cuts by the Bank of England. Meanwhile, defence stocks gained 0.5% following US President Donald Trump's endorsement of a US$175 billion missile defence system, dubbed the "Golden Dome". Retailer JD Sports tumbled 10.6% after posting a 2% drop in underlying sales and warning of pressure on consumer demand in the US.
Gold shines on safe-haven flows; oil and iron ore subdued
Gold prices rallied as investors sought refuge from equity market volatility and geopolitical tensions. Gold futures climbed US$28.90 or 0.9% to US$3,313.50 per ounce, while spot gold traded near US$3,315 at the US close. The rise was supported by a weaker US dollar and continued demand for hard assets amid macroeconomic uncertainty.
Oil markets edged lower following comments from Oman’s foreign minister confirming a fresh round of nuclear talks between the United States and Iran. Brent crude slipped US47 cents or 0.7% to US$64.91 per barrel, and West Texas Intermediate (Nymex) crude declined US46 cents to US$61.57.
Base metals posted small gains. Copper futures rose 0.4% to US$4.64 per pound, buoyed by safe-haven buying and a softer greenback. Aluminium was marginally higher at US$2,374.25 per tonne. Iron ore futures remained unchanged at US$100.05 per tonne, as weakness in China’s property sector offset support from solid demand and currency movements.