Australian shares are set to pull back slightly today after a record-setting Wednesday, with ASX 200 futures down 27 points (-0.30%) at 8:30 am AEST. The local benchmark closed at an all-time high of 8,843.7 yesterday, notching a second straight day of record gains despite soft offshore leads, with strength in gold, silver and energy stocks underpinning the rally.
All sectors except utilities finished higher, and small caps outperformed, with the Small Ords jumping 1.46% and tech, property, and consumer discretionary stocks seeing renewed interest.
Wall Street rises on Apple-led tech surge, but breadth lags
US stocks climbed overnight, powered by large-cap tech names and renewed bets on rate cuts after dovish commentary from Federal Reserve officials. The Nasdaq led the charge, up 1.21%, followed by the S&P 500 (+0.73%) and Dow (+0.18%).
Apple soared 5% after pledging a fresh US$100 billion investment in US manufacturing, a move widely seen as an effort to shield the company from Trump’s escalating tariff regime. Amazon, Tesla and Broadcom also rallied strongly, though market breadth remained weak — the equal-weight S&P 500 index slipped 0.22%, underperforming the main benchmark by 95 basis points.
Meanwhile, Fed officials including Neel Kashkari and Mary Daly signalled the central bank may soon begin cutting rates, citing slowing growth and a softening labour market. Markets are now pricing in 75 basis points of cuts before year-end.
Trump tariffs drive energy focus
Tariff tensions continued to simmer after US President Trump doubled import duties on Indian goods to 50%, accusing India of aiding Russia’s energy exports. The move sent crude prices lower for a fifth straight session, with Brent down 1.3% to US$66.77 and WTI off 1.4% to US$64.27 — both at two-month lows.
Still, energy stocks may be in focus today as investors weigh the risk of further global supply disruptions. Trump has warned that China and other buyers of Russian oil could be next in line for trade penalties, potentially tightening markets further.
Commodities mixed as gold cools, copper gains
Gold eased 0.3% to US$3,369 an ounce, pulling back from recent highs as profit-taking set in. Spot prices hovered near the same level in late trade. Silver edged up slightly to US$37.83, while copper rose 0.6% to US$4.40/lb amid lingering supply concerns in Chile.
Iron ore dipped 0.4% to US$100.92/tonne, with some investors taking profits after a multi-day run and concerns emerging about near-term demand in China. Lithium carbonate rose 0.6%, and nickel added 0.5%.
The Australian dollar traded just above US$0.65 this morning, up 0.3% as broad US dollar softness continued.
On the local radar today
It’s a relatively quiet session for earnings, with AMP and Light & Wonder among the only scheduled reporters. AMP’s results may offer insights into wealth flows and superannuation balances amid shifting consumer sentiment.
Economic data today includes Australia’s June trade balance at 11:30 am AEST and Chinese international trade figures around 1:00 pm, both closely watched for signals on export strength and global demand. The Bank of England releases its interest rate decision at 9:00 pm, with a 25-basis-point cut to 4% expected.