ASX 200 futures were up 41 points or 0.48% at 8:30 am AEST, suggesting a firmer open after a broad-based decline on Wednesday.
Yesterday, the ASX 200 fell 52 points or 0.61% to 8,538, its lowest close since June 27.
The decline was led by Real Estate (-1.54%), Materials (-1.31%) and Consumer Staples (-1.22%), while Utilities (+1.06%), Energy (+0.04%) and Telecommunications (+0.04%) offered some support. Investor sentiment was weighed down by delayed reaction to the Reserve Bank of Australia (RBA)'s decision to hold rates steady and renewed tariff threats from former US President Donald Trump.
Trump’s proposal for a 50% tariff on copper imports pressured local copper-exposed stocks: Sandfire Resources Ltd fell 3.45%, Capstone Copper Ltd dropped 3.03%, and BHP Group Ltd slipped 1.02%. Uranium stocks also retreated as futures eased to US$73.75: Bannerman Energy Ltd fell 8.65%, Paladin Energy Ltd dropped 8.27%, and Boss Energy Ltd lost 7.58%.
In contrast, lithium stocks surged after the US Environmental Protection Agency withdrew proposed restrictions on certain chemical substances. Vulcan Energy jumped 8.4%, Liontown rose 5.63%, and IGO added 1.86%.
Interest rate futures now imply 21 basis points of rate cuts in August and 60 basis points by year-end.
Wall Street rises despite tariff headwinds
US equity markets climbed overnight, shrugging off fresh tariff developments and digesting minutes from the Federal Open Market Committee’s June meeting. The minutes showed most participants see a rate cut this year as appropriate, though views were split on timing.
Nvidia closed 1.8% higher at US$162.88, briefly touching a US$4 trillion market cap. Broadcom rose 2.24%, Alphabet gained 1.3%, and Meta added 1.68%. Tesla declined 0.65%, posting its ninth loss in 11 sessions amid political distractions linked to Elon Musk.
President Trump escalated trade tensions, proposing tariffs on the Philippines, Iraq, and Brazil, alongside previously announced duties on copper, semiconductors and pharmaceuticals.
Initial jobless claims due tonight are expected to rise to 245,000. US interest rate futures are pricing in 19 basis points of cuts in September and 53 basis points by year-end.
European markets hit multi-week highs
European equities ended higher, with the continent-wide FTSEurofirst 300 up 0.8%. Banking stocks led gains as trade optimism lifted sentiment. Italy’s benchmark surged 1.6%, while eurozone bank stocks hit a 14-year high. London’s FTSE 100 rose 0.2%.
Currencies and commodities
Currency movements were mixed. The Euro dipped to US$1.1690 before recovering to US$1.1720. The Australian dollar rose to US65.35 cents, while the Japanese yen strengthened to JPY146.30.
Oil prices rose marginally, supported by higher US gasoline demand. Brent crude added US4 cents to US$70.19 per barrel, and WTI gained US5 cents to US$68.38.
Base metals were mixed. Copper fell 3.6% on tariff concerns, while aluminium rose 0.7%. Gold futures edged up US$4.10 to US$3,321 per ounce, with spot gold near US$3,312. Iron ore slipped US23 cents to US$95.32 per tonne as China’s producer deflation deepened.