Australian shares are poised to open slightly lower on Wednesday, with ASX 200 futures down 7 points (-0.08%) as of 8:30 am AEST. This comes after the local benchmark eked out a 0.08% gain on Tuesday, lifted by a rebound in energy and healthcare names, despite continued weakness in uranium stocks.
Overnight, Wall Street lost some momentum ahead of several major catalysts, with all three major indices closing down. The S&P 500 slipped 0.3%, the Nasdaq fell 0.38%, and the Dow dropped 0.46% as traders braced for the US Federal Reserve’s interest rate decision, Big Tech earnings and a slew of global economic data all due this week. US 10-year bond yields fell 9 basis points to 4.32% amid strong demand at a government auction and a weaker-than-expected jobs report.
Energy markets surged as geopolitical risk re-entered the picture. WTI crude jumped 3.8% after US President Donald Trump said Russia had 10 days to broker a truce in Ukraine or face further tariffs, a threat that raised expectations of supply disruptions.
ASX review: Energy climbs, uranium slides
Back home, the ASX 200 managed a modest advance on Tuesday, with most sectors ending in the green by the close. Energy stocks led the recovery, with Santos gaining 2.1% and Woodside rosing 1.6% as oil prices rallied. Healthcare was also broadly firmer: CSL rose 0.5%, Cochlear added 0.8% and Pro Medicus was up 0.9%.
Uranium stocks, however, continued to struggle after Boss Energy’s sharp drop on Monday. Spot uranium prices remain under pressure, weighing on sentiment across the sector.
Small caps had a slightly weaker performance, with the S&P/ASX Small Ordinaries slipping 0.23% to 3,337.60.
Wall Street cools after record run
US markets pulled back from record highs overnight as investors digested mixed corporate results and awaited fresh direction from the Fed.
Several large caps disappointed. UnitedHealth sank 7.5% after warning of higher medical costs in 2025, while Boeing dropped 4.4% despite narrowing losses. UPS plunged more than 10% after again withholding full-year guidance, citing tariff uncertainty and softer demand.
Tech remains in focus ahead of earnings from Microsoft and Meta tonight, followed by Apple and Amazon tomorrow.
The Fed is widely expected to hold rates steady when it delivers its decision overnight, but markets are searching for signals on potential cuts starting in September. Goldman Sachs is still forecasting three cuts by year-end.
Commodities steady, oil surges
Commodities mostly advanced overnight, led by oil and copper.
- Gold rose 0.35% to US$3,326 an ounce, snapping a four-day losing streak.
- WTI crude surged 3.83% to US$69.27 on renewed supply risk from Russia, while Brent rose 3.76% to US$72.67.
- Copper added 0.84% to US$11,283/tonne, and nickel gained 0.62%.
- Lithium carbonate (China spot) edged up 0.6% to US$8,550, though Chinese futures have tumbled 14% in the past two sessions, fuelling ongoing market volatility.
The Australian dollar is holding near US$0.6510, steady against a stronger US dollar.
What’s on today: CPI in focus, Fed and Rio Tinto ahead
Today’s big event is Australia’s June quarter inflation report, due at 11:30 am AEST. Markets are expecting trimmed mean CPI to rise 0.7% for the quarter, supporting bets for an RBA rate cut in August.
Other key data today includes:
- Eurozone GDP and consumer confidence (7:00 pm AEST)
- US Q2 GDP and ADP jobs figures (10:30 pm AEST)
- Bank of Canada rate decision (11:45 pm AEST)
Corporate reporting continues, with Pilbara Minerals posting a strong Q4 spodumene production result above guidance, while Polynovo has guided to FY25 EBITDA broadly in line with consensus. Rio Tinto reports half-year earnings after the bell.
Today will also see an initial public offering (IPO) from Champion Iron and ex-dividend trading for several listed funds, including the Metrics trusts and Mirrabooka Investments.