ASX 200 futures were down 13 points, or 0.14%, at 8:30 am AEST, with the local sharemarket poised for a softer open despite strong gains in the mining sector on Monday.
The S&P/ASX 200 Index closed 0.4% higher yesterday at 8,844.80 after touching an intraday peak of 8,852.30, while the All Ordinaries advanced 0.5%. The rise came ahead of a widely anticipated interest rate cut by the Reserve Bank of Australia (RBA) on Tuesday, which would mark the third reduction this year and take the cash rate to 3.6%.
Moomoo Australia market analyst Michael McCarthy said a quarter-point cut could push the ASX 200 to fresh records but cautioned against certainty. “What many analysts seem to overlook is that just because the RBA can cut, doesn’t mean it will cut. An unemployment rate of 4.3% means it is not under any pressure to do so,” he said.
Materials led gains as lithium stocks rallied after Chinese battery maker Contemporary Amperex Technology suspended operations at a major mine. Pilbara Minerals jumped 19.7% to A$2.31, Liontown Resources rose 18.3% to A$1.00, and Mineral Resources added 12.2% to A$38.12, with the sector up 6.9% over five sessions.
Iron ore miners also strengthened after futures in Singapore gained 1.4% to US$103.50 per tonne on reports of steel mill shutdowns in China to curb pollution. BHP lifted 1.6% to A$40.87, Fortescue Metals rose 3% to A$19.42, and Rio Tinto gained 1.5% to A$115.29.
US sharemarkets ease ahead of inflation data; chipmakers volatile on China levy news
US sharemarkets declined on Monday as investors awaited key inflation data later this week and semiconductor stocks fluctuated after agreeing to share a portion of China-related revenue with the US government. The Dow Jones Industrial Average fell 200.5 points or 0.5%, the S&P 500 slipped 0.3%, and the Nasdaq Composite shed 64 points or 0.3%, retreating from a record high.
Nvidia and Advanced Micro Devices each fell 0.3% after a US official told Reuters the companies had agreed to remit 15% of revenue from advanced chip sales to China under a trade policy shift from the Trump administration. Analysts warned the levy could pressure margins and set a precedent for taxing other critical exports.
Micron Technology gained 4.1% on a stronger fourth-quarter outlook, while Intel added 3.5% on reports that CEO Lip-Bu Tan will visit the White House. TKO Group surged 10.2% after Paramount secured exclusive UFC distribution rights for US$7.7 billion. Tesla advanced 2.9% after applying for a UK electricity licence. Hershey fell 4.8% as cocoa futures climbed.
Europe mixed
Continental European markets edged lower, with the FTSEurofirst 300 down 0.1% and German defence stocks weaker on Ukraine peace hopes. Orsted slumped 29.7% after announcing a multi-billion crown rights issue.
Currencies softer
London’s FTSE 100 gained 0.4% on strength in life insurers. The euro, Australian dollar and yen all weakened against the US dollar.
Commodities mixed
Oil prices were flat, with Brent at US$66.63 a barrel. Copper fell 0.7% and aluminium dropped 1.3%. Gold futures slid 2.5% to US$3,404.70 an ounce, while iron ore rose 0.7% to US$101.96 a tonne on Chinese restocking demand.