Australia’s sharemarket looks set to kick off Wednesday’s session on the front foot, with futures up 24 points (+0.27%) by 8:30am AEST — pointing to potential new highs for the benchmark ASX 200 index.
That follows a positive lead from Wall Street, where investors shrugged off lingering uncertainty over global trade talks and turned their focus to tonight’s key US inflation data. The S&P 500 climbed 0.55%, the Nasdaq gained 0.63%, and the Dow added 0.25%, buoyed by strength across tech, energy, and consumer sectors.
ASX bounces back, with tech and banks leading the charge
The local sharemarket rallied 0.84% on Tuesday, as it extended its sharp rebound from April’s correction. The ASX 200 Total Return Index is now up more than 17% since its April 7 trough, and tracking firmly higher year-to-date and over the past 12 months.
Bank stocks underpinned the gains, with NAB up 1.5%, while retailers like JB Hi-Fi and Wesfarmers also made headway. Tech was another bright spot, with NextDC surging 5.2% following a contract update, and Wisetech and Xero both notching solid advances.
Gold names, however, dragged, with the sub-index falling 1.7% as heavyweights Evolution and Newmont lost ground.
Wall Street climbs, eyes on CPI and trade diplomacy
Investor sentiment improved overnight amid reports that US-China trade discussions in London were “constructive,” though details remain scarce. A third day of talks is reportedly on the cards, keeping markets on edge but cautiously optimistic.
Attention now turns to May CPI data out of the US, due at 10:30pm AEST. Core inflation is expected to have risen around 0.3% for the month, though some forecasters see a softer print. Any surprise to the upside could shift expectations for the Federal Reserve’s policy path, with markets currently pricing in a potential rate cut in September.
Mega-cap tech stocks lent further support, with Apple revealing new AI-driven software features and Nvidia partnering with HP to develop a next-generation supercomputer. OpenAI also made headlines, reporting that recurring revenue has nearly doubled over the past year.
Still, some caution persists — Bank of America flagged that institutional investors have been net sellers of US equities for five straight weeks, the longest stretch since 2017.
Small caps to watch
The ASX Small Ordinaries index edged 0.15% higher on Tuesday to 3,249.30, with traders continuing to nibble at emerging names despite broader macro uncertainty.
In small-caps action today:
- European Lithium Ltd (ASX:EUR, OTCQB:EULIF) reported historic high-grade rare earth drill results from Greenland’s Tanbreez Project, including 240.9 metres at 0.48% TREO with 29% heavy rare earth oxides and 57% zirconia.
- QMines Ltd (ASX:QML) progressed its large-scale drill campaign at Develin Creek, completing 11 holes and targeting resource upgrades to feed into its broader copper-gold strategy in Queensland.
- Asian Battery Metals PLC (ASX:AZ9) unveiled high-grade assays from its Oval copper-nickel discovery in Mongolia, including 27.7 metres at 1.36% copper and 0.86% nickel, further validating its massive sulphide model.
- Resolution Minerals Ltd (ASX:RML, OTC:RLMLF) signed a binding agreement to acquire the drill-ready Horse Heaven antimony-gold-tungsten project in Idaho’s historic Stibnite Mining District, with exploration to kick off in 2025.
Commodities, currency and crypto
Gold prices held above US$3,320 an ounce, supported by a wait-and-see approach ahead of US CPI. Oil slipped, with WTI crude down 0.8% to US$64.74. Copper, iron ore and lithium prices were slightly weaker.
The Aussie dollar edged up to US$0.6528. Bitcoin traded just under US$110,000.
Watching the tape
A few stocks will be on traders’ radars today, including NextDC and Metcash after strong showings yesterday. Metcash’s full-year guidance came in slightly ahead of expectations, while analysts may revise their outlooks following NextDC’s latest contract update.
On the downside, gold and uranium stocks could remain under pressure after sector ETFs fell overnight, with the uranium ETF down 3.2%.