ASX 200 futures were up 20 points, or 0.23%, at 8:30 am AEST, pointing to a modestly stronger open for the Australian market.
Overnight, trading volumes were subdued with US markets closed for Memorial Day and the United Kingdom shut for the Spring Bank Holiday. As a result, a relatively quiet session is expected locally.
The ASX 200 closed unchanged at 8,361 yesterday, marking a narrow 23.8-point range — one of its smallest trading ranges in recent memory. Information technology (+1.08%), materials (+0.44%) and consumer discretionary (+0.29%) outperformed, while utilities (-2.39%), telecommunications (-0.26%) and financials (-0.23%) lagged.
Uranium stocks rallied sharply after President Trump signed an executive order to boost domestic uranium mining and enrichment, aiming to reduce dependence on Russian and Chinese supply chains. Deep Yellow Ltd rose 13.65% to A$1.41, Paladin gained 8.84% to A$6.28, Boss Energy Ltd climbed 7.29% to A$4.27, and Silex Systems Ltd advanced 4.71% to A$3.56.
In corporate news, WiseTech Global Ltd jumped 4.7% to A$104.75 after announcing its US$2.1 billion acquisition of e2open, a logistics software provider. Elders Ltd fell 6.67% to A$6.16 after posting half-year earnings that missed expectations.
As for the small cap index, the S&P/ASX Small Ordinaries (XSO) finished 0.013% lower yesterday at 3,187.80. It is 1.20% higher over the past five days. It’s a slow morning so far, but Ionic Rare Earths Ltd has reached a significant milestone in its global expansion strategy with the first delivery of recycled magnet rare earth oxides to Brazilian magnet manufacturing partner CIT Senai. Meanwhile, Prescient Therapeutics Ltd has started dosing in its Phase 2a clinical study of PTX-100.
European markets rally as US and UK exchanges pause for holidays
With US and UK equity markets closed for the Memorial Day and Spring Bank Holiday weekends respectively, focus turned to European bourses, where sentiment improved following a US decision to postpone new tariffs. Germany’s DAX advanced 1.7%, while France’s CAC 40 gained 1.21%, buoyed by US President Donald Trump’s move to delay 50% tariffs on European Union imports until 9 July. The deferral followed a call with European Commission President Ursula von der Leyen, who stated, “Europe is ready to advance talks swiftly and decisively,” but noted a good deal “would likely take time.”
The DAX is now up 6.8% month to date (MTD), closely tracking the Nasdaq 100’s 6.87% gain. The S&P 500 has added 4.20%, Japan’s Nikkei 225 is up 4.28%, and the ASX 200 has risen 2.89%, outperforming the FTSE 100’s 2.63% lift.
Chipmaker Nvidia is due to report earnings after the US market close on May 28 (May 29, AEST), marking the final earnings release among the so-called “Magnificent Seven”. The company is expected to post earnings per share (EPS) of US$0.88 on US$43.26 billion in revenue. Options markets imply a potential move of US$11 in either direction, suggesting the stock could trade between US$120 and US$142 following the announcement.
Investor attention will also shift to macroeconomic updates, including US Federal Reserve commentary, the release of Federal Open Market Committee (FOMC) minutes, and key data such as the Core Personal Consumption Expenditures (PCE) index, personal income and spending, durable goods orders, and the second estimate of first-quarter GDP. Futures markets imply an 80% chance of a 25 basis point cut by September, with 55 basis points of easing forecast by year-end.
Currencies ease, oil steady and base metals rise as EU tariff threat recedes
Currencies weakened against the US dollar during European and North American trading sessions on Monday. The euro declined from US$1.1417 to US$1.1368, before settling near US$1.1385 late in the session. The Australian dollar fell from US65.29 cents to US64.81 cents, ending around US64.85 cents. The Japanese yen also softened, moving from 142.47 per US dollar to 143.02, and was trading near 142.80 in late trade.
Oil prices remained steady, as markets digested the news that eight OPEC+ countries planning additional voluntary output cuts will meet on 31 May, a day earlier than scheduled. Brent crude edged down by US4 cents to US$64.74 a barrel, while US Nymex crude last traded at US$61.53 a barrel. Trading volumes were subdued due to the US public holiday.
Base metals advanced in London, buoyed by improved sentiment after US President Donald Trump withdrew his threat to impose 50% tariffs on European Union imports. Copper futures rose 1.3%, and aluminium gained 0.4%. US metals markets were closed.
Gold prices fell following the tariff decision, which reduced safe-haven demand. Gold futures slipped by US$23.60, or 0.7%, to US$3,342.20 an ounce. Spot gold was quoted near US$3,342 in late North American trade.
Iron ore futures declined in Singapore, shedding US16 cents, or 0.2%, to US$99.40 per tonne. The dip reflected soft steel consumption in China and ongoing weakness in the nation’s property sector. US iron ore futures markets were closed after ending at US$99.81 per tonne on Friday.