The ASX is poised to rise again this morning after a strong Wall Street session pushed major US benchmarks to fresh record highs. Futures were up 32 points (+0.37%) at 8:30 am AEST, building on Thursday’s rally that saw the ASX 200 gain 0.90% and notch its 10th all-time high of the year.
Investors are digesting strong US retail sales, corporate earnings beats and signs of resilient consumer spending.
Locally, lithium and graphite stocks are likely to remain in focus following bullish developments in China and the US, while BHP’s latest production report will set the tone for heavyweight miners.
Wall Street climbs on earnings strength and upbeat data
US equities extended their recent gains overnight, with the S&P 500 (+0.54%) and Nasdaq (+0.75%) both closing at record highs. The Dow Jones added 0.52%, while the small-cap Russell 2000 outperformed with a 1.20% jump.
US retail sales rose a stronger-than-expected 0.6% in June, helping to soothe recent concerns over growth. Jobless claims also fell to a three-month low, reinforcing the view that the US labour market remains robust.
Earnings reports were broadly positive: Netflix rose 1.9% after posting a beat on Q2 earnings and raising its full-year outlook, while PepsiCo jumped 7.4% on strong international sales. TSMC shares also rallied as quarterly profit surged 60%, although the company warned that escalating US-China trade tensions could weigh on demand.
Federal Reserve officials delivered mixed signals overnight. San Francisco Fed President Mary Daly reiterated that two rate cuts are still possible this year, but Governor Adriana Kugler flagged inflation risks tied to tariffs, urging a more cautious approach.
ASX hits fresh high as unemployment ticks up
The S&P/ASX 200 closed 77.2 points higher on Thursday to finish at a new record of 8,639 — its 10th all-time high this year. All 11 sectors ended in the green, led by technology, financials and materials.
Small caps also climbed, with the ASX Small Ordinaries index up 0.67% to 3,311. Energy and mining stocks benefited from firmer commodity prices, while lithium names surged late in the session on reports of supply disruptions in China.
Meanwhile, Australia’s unemployment rate unexpectedly rose to 4.3% in June, prompting a rise in rate-cut bets ahead of the Reserve Bank’s next decision. Economists noted a jump in youth unemployment to 10.4% and slower full-time job growth as signs of softening in the labour market.
In small-cap action
A handful of announcements trickled in on Friday morning:
- Resolution Minerals Ltd (ASX:RML, OTC:RLMLF) has formally appointed Craig Lindsay as CEO of its US operations. A veteran of North American mining projects, Lindsay will oversee drilling and government engagement at the company’s Horse Heaven critical minerals project in Idaho.
- Lithium Universe Ltd (ASX:LU7, OTC:LUVSF) completed its acquisition of New Age Minerals, securing exclusive rights to Macquarie University’s patented Microwave Joule Heating Technology for recycling end-of-life solar panels.
- Highfield Resources Ltd (ASX:HFR) extended its exclusivity agreement with Chinese group Qinghai Salt Lake, giving the firm until mid-September to complete due diligence on a proposed US$300 million cornerstone investment.
- Dynamic Metals Ltd (ASX:DYM) reported strong drilling results at the Cognac West prospect and said all approvals are now in place for a 13-hole campaign at Chalice South, set to begin this quarter.
- Askari Metals Ltd (ASX:AS2) identified high-grade copper mineralisation in historical drilling at its Nejo Gold Project in Ethiopia, with one intercept returning 14.33 metres at 3.2% copper. The company sees strong potential for a maiden JORC resource through follow-up drilling and modern exploration.
Commodities and currencies
Commodities were mixed overnight, with oil prices climbing on geopolitical concerns and metals consolidating recent gains.
- Gold slipped 0.2% to US$3,339.27/oz;
- Copper dipped 0.26% to US$5.47/lb;
- WTI crude rose 1.8% to US$67.62/bbl; and
- Iron ore edged up to US$97.18/tonne.
Lithium carbonate spot prices in China advanced another 2.5% to US$8,500 per tonne, following reports of illegal mining crackdowns.
In currencies, the Australian dollar was steady at US$0.6491, while Bitcoin hovered just under US$120,500.
On the radar today
BHP released its June quarter operations review this morning, reporting better-than-expected fourth-quarter iron ore output, with both iron and copper output reaching the upper end of guidance for the 2025 financial year, calming investor concerns about softening China demand.
Graphite stocks may also attract attention after the US imposed a 93.5% anti-dumping duty on Chinese graphite imports — a move that could benefit ASX-listed producers.
On the macro front, Japan’s June CPI is out this morning, followed by key US data tonight including housing starts and consumer sentiment.