ASX 200 futures were up 13 points or 0.15% at 8:30 am AEST, pointing to a cautious start for local shares after a mixed global lead.
The ASX200 added 46 points early on Wednesday to reach a three-month high of 8,453 before slipping after April’s monthly inflation read came in slightly hotter than expected. Headline consumer price index (CPI) was steady at 2.4% year-on-year, above the 2.3% forecast, while the trimmed mean rose to 2.8%.
Markets adjusted their rate cut expectations modestly. The probability of a 25 basis point cut in July fell from 66% to 56%, and pricing for total cuts by year-end eased by 5 basis points.
Woodside Energy Ltd rose 3.22% to A$22.12 after securing a 40-year extension to its North West Shelf project. Web Travel Group Ltd gained 12.39% on stronger-than-expected earnings. Conversely, Mineral Resources Ltd dropped 5.47% to A$22.45 after lowering its iron ore shipment guidance due to transport issues.
Looking at the small cap market, the S&P/ASX Small Ordinaries (XSO) gained 0.41% to finish the day at 3,208.40. Over the past five days, the index has risen 1.24%.
On the news front, Evion Group NL has received formal renewal approval from the Bureau du Cadastre Minier de Madagascar (BCMM) for three key exploration tenements — PR3432, PR25606 and PR39750 — at its flagship Maniry Graphite Project in southern Madagascar.
Altech Batteries has released an executive summary of a DNV-led independent comparison, confirming its CERENERGY® sodium chloride solid-state technology as a promising emerging alternative to lithium-ion, sodium-sulphur, and vanadium flow batteries, with expected improvements in energy density, performance, and cost efficiency.
Global equities soften, Nvidia lifts sentiment
US equities closed broadly lower overnight as investors reacted to cautious commentary in the latest Federal Reserve minutes and rising bond yields. A lacklustre 40-year Japanese bond auction weighed on sentiment, while muted progress in US-European Union trade talks added to concerns. However, US futures gained around 0.5% in after-hours trading following Nvidia’s stronger-than-expected quarterly results.
The chipmaker reported first-quarter revenue of US$44.06 billion and adjusted earnings per share of US$0.96, exceeding consensus estimates. Data centre revenue surged 73% to US$39.1 billion, though a US$4.5 billion charge tied to Chinese export restrictions dampened the overall result. Nvidia CEO Jensen Huang said the Chinese AI chip market is now “effectively closed to US industry” but noted global demand for Nvidia’s infrastructure remains robust.
Europe retreats, currency and commodity moves
European sharemarkets ended lower on Wednesday, weighed down by broader declines as investors tracked developments in trade talks with the United States and digested mixed economic data from the region.
In Germany, import prices unexpectedly fell by 0.4% year-on-year in April, while the country’s unemployment rose more sharply than anticipated in May, fuelling concerns about the economic outlook in Europe’s largest economy.
Retail stocks led sector losses, down 1.1%, with basic resources shares also shedding 1.1% amid the subdued sentiment.
The continent-wide FTSEurofirst 300 index fell by 0.7%. In London, the UK FTSE 100 index slid 0.6%.
Major currencies ease; oil gains on supply concerns; base metals, iron ore, and gold retreat
Major currencies weakened against the US dollar during European and US trading on Wednesday. The euro declined from US$1.1340 to US$1.1284, settling near US$1.1290 at the US close. The Australian dollar eased from US64.48 cents to US64.09 cents before recovering slightly to US64.25 cents. The Japanese yen slipped from 143.99 per US dollar to JPY145.07, trading around JPY144.85 late in the session.
Oil prices climbed over 1% amid renewed supply concerns after the Organization of the Petroleum Exporting Countries and allies (OPEC+) maintained their current production policy, and the United States halted Chevron’s exports of Venezuelan crude. Brent crude rose by US81 cents or 1.3% to US$64.90 per barrel, while US Nymex crude gained US95 cents or 1.6% to US$61.84 per barrel.
Base metals declined, with copper futures down 1.4% as a firmer US dollar and weaker import demand from China offset support from tighter inventories on the London Metal Exchange. Aluminium futures fell 0.6%.
Gold futures dipped US$5.50 or 0.2% to US$3,294.90 an ounce after the US Federal Reserve’s May meeting minutes flagged heightened inflation and recession concerns. Spot gold was quoted near US$3,293 at the US close.
Iron ore futures edged down US9 cents or 0.1% to US$99.39 per tonne, weighed by a slowdown in steel production in China, the world’s largest consumer.