The Australian sharemarket is set for a firmer open on Wednesday, with ASX 200 futures up 51 points or 0.60% at 8:30 am AEST. This follows a strong lead from Wall Street, where major indices surged overnight as investors welcomed a delay in US tariffs on EU imports and a surprise jump in US consumer confidence.
Bond yields retreated as Japanese authorities signalled plans to reduce debt issuance, easing global fiscal concerns. Locally, today’s monthly Consumer Price Index (CPI) print will be a key event, with expectations for a slight decline in inflation to 2.3% - potentially reinforcing the Reserve Bank of Australia’s wait-and-see stance.
ASX and small caps
The ASX 200 added 0.6% on Tuesday to close at 8,408 points, buoyed by positive offshore sentiment and strong earnings results from names like Fisher & Paykel Healthcare and Webjet. The S&P/ASX Small Ordinaries Index also edged higher, up 0.24% to 3,195.3.
In other corporate news, Mineral Resources cut its iron ore volume guidance for the 2025 financial year, blaming transport bottlenecks, but affirmed its target of reaching capacity of 35 million tonnes per annum in the first quarter of 2026. Goodman Group reaffirmed its FY25 guidance of 9% growth in earnings per share and a 30 cps dividend after posing a 4.5% lift in like-for-like net property income in the third quarter.
In small caps action today:
- Dynamic Metals Ltd (ASX:DYM) announced the commencement of the second phase of reverse-circulation drilling at the Cognac West prospect, part of the Widgiemooltha Project in Western Australia. The follow-up campaign will consist of 19 RC holes testing priority targets following the first drilling phase in March.
- NoviqTech and Livium Ltd (ASX:LIT, OTC:LMMFF) announced a partnership to support the tokenisation of environmental benefits from Livium’s advanced battery recycling operations via NoviqTech’s Carbon Central platform, aiming to establish a digital framework for tracking and verifying carbon reductions and mineral circularity.
- Evion Group NL (ASX:EVG, OTC:EVIGF) welcomed the launch of a World Bank-funded highway upgrade in Madagascar, improving logistics access to its Maniry Graphite Project and aligning with its EU-backed critical minerals strategy.
Wall Street surges on trade détente, consumer confidence boost
US equities rocketed higher as markets reopened from the Memorial Day holiday, buoyed by a more conciliatory tone on trade and stronger-than-expected economic data.
The S&P 500 gained 2.05% to 5,922, while the Dow Jones Industrial Average rose 1.78% to 42,344, and the Nasdaq Composite climbed 2.47% to 19,199.
All 11 sectors in the S&P finished in the green, led by consumer discretionary (+3%), tech (+2.6%) and communication services (+2.1%). Nvidia jumped 3.2% ahead of today’s earnings report, while Tesla surged 6.9% on bullish commentary from Elon Musk.
The rally came after President Trump announced an extension of the EU tariff deadline to July 9, while consumer confidence unexpectedly soared to 98 – a 12-point gain and the sharpest monthly increase in four years.
US Treasury yields fell sharply, with the 10-year note down 7 basis points to 4.44%, as Japanese debt signals and soft durable goods orders supported demand for bonds.
Commodities and currencies
Risk-on sentiment pressured safe havens, while metals and energy markets delivered mixed signals.
- Gold fell 1.3% to US$3,300.26 an ounce as investors rotated out of defensive assets
- Copper eased 1.9% to US$9,427 a tonne, reversing earlier gains on dollar strength and tariff uncertainty
- Iron ore dipped 0.3% to US$99.48 a tonne amid ongoing steel output concerns in China
- Oil prices were down, with WTI slipping 0.73% to US$61.07 a barrel and Brent falling 0.4% to US$64.27 a barrel ahead of the OPEC+ meeting, where a production increase may be discussed
- The Australian dollar retreated 0.67% to US64.46 cents after nearing six-month highs.
Looking ahead
Today’s monthly CPI indicator will be the key local data point, with economists tipping a slight drop to 2.3% from March’s 2.4%. A benign print could support rate-sensitive sectors and take pressure off the RBA. First-quarter construction data are also due.
Elsewhere on the economic calendar today, the Reserve Bank of New Zealand is expected to cut interest rates by 25 basis points, while tonight the US releases manufacturing data and Federal Open Market Committee meeting minutes.
Also on watch: Nvidia earnings, which could further stoke the AI rally if results beat lofty expectations. Locally, the uranium sector could see action after Global X’s Uranium ETF closed in on a new 11-year high.