The ASX 200 is poised to rebound on Friday, with futures up 46 points (+0.53%) as of 8:30 am AEST, tracking modest overnight gains on Wall Street.
Softer-than-expected US inflation data and strong demand at a 30-year Treasury auction buoyed investor sentiment, helping key US indices close near their session highs.
A record close is back on the table for the ASX, even as volatility in global trade headlines and simmering Middle East tensions keep markets on edge. A rally in gold and AI-related stocks is likely to drive sector-specific action, while retail and infrastructure names may see added scrutiny after fresh corporate updates.
ASX and small caps
The ASX 200 closed 27 points lower on Thursday, retreating 0.31% as the index failed to hold its recent highs. A souring risk appetite, spurred by geopolitical tensions and a lift in oil prices, weighed on resource-heavy sectors including lithium, iron ore and base metals.
Gold miners outperformed, bolstered by a rally in bullion, while tech shares also gained ground. Big banks were slightly weaker, adding downward pressure in index terms.
The ASX Small Ordinaries index rose 0.55% to 3,268.70.
In small-caps action today:
- Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF): Brazilian JV Viridion has secured government funding to advance rare earth refining and recycling, supporting Brazil’s push to build ex-China supply chains.
- Resolution Minerals Ltd (ASX:RML, OTC:RLMLF): RML is nearing a US OTCQB listing to broaden access to North American investors and strengthen interest in its Idaho-based critical minerals project.
- Terra Metals Ltd (ASX:TM1, OTC:PNGZF): TM1 raised $4 million in a strategic placement backed by GEAR and M Resources, with funds to advance drilling at the Dante copper-vanadium project in WA.
Wall Street: Strong bond auction and soft PPI lift sentiment
US markets edged higher overnight, with the S&P 500 up 0.4%, the Dow adding 0.2%, and the Nasdaq closing 0.2% higher.
A cooler-than-expected producer price index (PPI) print — just +0.1% month-on-month — reinforced investor expectations for rate cuts later in the year. Coupled with a well-received 30-year bond auction, the data helped push Treasury yields lower across the curve, supporting equity valuations.
Oracle surged 13% after guiding to a 70% jump in cloud infrastructure revenue, boosting confidence in the broader AI space. Microsoft, Nvidia and Broadcom also posted gains.
Meanwhile, Boeing shares fell 5% after a 787 Dreamliner crash in India, the first fatal incident for that aircraft model since launch.
Commodities and currencies
Gold rallied to a one-month high of US$3,386 an ounce, as soft inflation data and geopolitical risks stoked safe-haven demand. Spot bullion is now within striking distance of the US$3,400 mark.
Copper climbed 0.6% and WTI oil rose just over 1% amid mounting tensions in the Middle East, while iron ore slipped 0.3% to US$95.46/tonne. Nickel and zinc also fell modestly, while lithium carbonate spot prices in China were steady.
The Australian dollar rose 0.45% overnight to US65.33¢, lifted by the softer US dollar. Bitcoin slid 2.7% to around US$106,000, while Ethereum fell more than 4%.
Looking ahead
Locally, investors will digest Accent Group’s weaker-than-expected earnings guidance and a discounted block trade in Dalrymple Bay Infrastructure.
Gold stocks look primed for further upside amid a buoyant backdrop for the metal. Meanwhile, attention will turn to overseas arrivals and departures data today and the University of Michigan consumer sentiment index in the US overnight.