ASX 200 futures were up 11 points, or 0.12%, at 8:30 am AEST.
Today’s rise follows yesterday’s record session. The S&P/ASX 200 rose 106 points or 1.23% on Wednesday to close at a record 8,770, driven by strength across Consumer Discretionary (+1.81%), Financials (+1.49%) and Real Estate (+1.38%) sectors. The rally followed early gains of more than 100 points before a late buying surge pushed the benchmark to its highest close on record.
Investor sentiment was boosted by overnight gains on Wall Street, where markets responded positively to rising expectations of sooner and deeper rate cuts from the US Federal Reserve. The ASX Information Technology sector added 1.27%, led by DroneShield (+6.10%), Zip (+5.94%), Megaport (+2.92%) and Life360 (+1.28%).
Among the major miners, Mineral Resources jumped 7.09% to $32.94, its first close above $32.00 since February. Rio Tinto gained 0.43% to $111.87, BHP lifted 0.53% to $39.80, and Fortescue added 0.49% to $18.34. Big banks extended their rebound with NAB, ANZ, Westpac, CBA and Macquarie all closing higher.
Elsewhere, Telix Pharmaceuticals slumped 8.45% after flagging higher H1 expenses, while Silex Systems gained 6.19% after announcing its uranium enrichment JV had been shortlisted for US$900 million in US funding.
Wall Street wavers as services sector stagnates
US markets retreated overnight as investors weighed rate cut hopes against fresh signs of economic slowdown. The ISM Services PMI slipped to 50.1 in July, down from 50.8 in June, with declines across business activity, new orders, inventories and employment. Price pressures also rose to their highest level since October 2022, fuelling stagflation concerns.
The services sector, which contributes 70–75% of US GDP, has now weakened significantly from its October 2024 high of 55.8. Tariff risks also returned to focus, with US President Donald Trump suggesting new duties on semiconductors, pharmaceuticals and Indian goods could be unveiled within days.
Trump also confirmed he is considering four candidates for the next Federal Reserve Chair, naming Kevin Hassett and Kevin Warsh among them. Markets currently favour Warsh, though support for Hassett and Waller is building.
European equities edge higher
European sharemarkets ended modestly higher, supported by upbeat earnings and dovish Fed expectations. Diageo climbed 4.9% after issuing a resilient outlook, lifting the food and beverage index. The FTSEurofirst 300 gained 0.1%, while London’s FTSE 100 rose 0.2%.
Currencies mixed as rate outlook dominates
The Australian dollar rose to US64.70 cents, while the euro traded near US$1.1575. The Japanese yen weakened to JPY147.55. The Australian interest rate market remains fully priced for a Reserve Bank of Australia rate cut in August, with 64 basis points of easing forecast by year-end. US markets anticipate a 25 basis point Fed cut in September and 58 basis points in total cuts by December.
Commodities: Oil down, gold and iron ore up
Oil fell for a fourth straight session on rising OPEC+ supply and demand concerns. Brent dropped 1.6% to US$67.64 a barrel. Gold gained 0.2% to US$3,434.70 an ounce, supported by falling bond yields. Iron ore rose 0.6% to US$101.36 per tonne on strong Chinese demand. Copper fell 1.2%, while aluminium rose 0.2%.