The Australian sharemarket is poised to edge higher after a mixed session yesterday, with futures up 10.5 points (+0.12%) at 9:40 am AEST. Wall Street again set new records overnight, helped by tech and healthcare gains, while traders continued to bet on near-term Fed rate cuts following a hefty downward revision to US payrolls.
Gold props up a weak ASX session
The S&P/ASX 200 closed 46 points higher on Tuesday, up 0.52% to 8,804. It was a quiet day overall, with most sectors in the red but gains for gold miners once again stealing the show. The All Ords rose 0.51% and the Small Ords slipped 0.08%.
Information technology (+0.4%), consumer discretionary (+0.3%) and utilities (+0.1%) managed modest gains, but energy (-1.0%), real estate (-0.9%) and healthcare (-0.9%) weighed on the broader index. Financials also lost ground, with the sector off 0.7%.
The standout was gold, with bullion trading near record highs and the XGD index rallying strongly, delivering some relief after recent volatility in the sector.
Wall Street hits new highs
US equities notched fresh highs, though momentum was uneven. The S&P 500 gained 0.27% to close at 6,513, the Dow Jones climbed 0.43% to 45,711, and the Nasdaq added 0.37% to 21,879. However, the equal-weighted S&P 500 finished lower, reflecting weaker breadth.
The catalyst was another negative annual revision to nonfarm payrolls — nearly a million fewer jobs than previously reported — which investors interpreted as bolstering the case for aggressive Fed rate cuts this year. US bond yields lifted despite the weaker data, with the 10-year Treasury up 5 basis points to 4.09%.
In corporate news, Oracle shares surged more than 20% after an earnings beat and bullish cloud outlook, instantly propelling founder Larry Ellison to the number two spot on the global rich list.
Apple unveiled its ultra-thin iPhone Air, iPhone 17 and 17 Pro, but shares slipped 1.5% as investors shrugged at the incremental updates, while Microsoft inked a five-year AI cloud computing deal with Nebius Group worth nearly US$20 billion. And in media, Lachlan Murdoch tightened his grip on the family empire, set to oversee a new US$3.3 billion trust that cements control of News Corp and Fox Corp, ensuring their conservative editorial stance remains intact.
Commodities and currencies
Gold eased slightly from recent peaks, dipping 0.2% to US$3,630 an ounce, though prices remain elevated as traders price in imminent Fed easing. Iron ore extended its winning streak to a sixth day, adding 1.1% to US$106.08 a tonne on optimism around Chinese demand and supply uncertainty from Simandou in Guinea.
Oil rebounded, with WTI up 0.8% to US$62.77 a barrel and Brent climbing 0.8% to US$66.55, after reports of escalating geopolitical tensions in the Middle East. Copper was broadly flat at US$4.50 an ounce.
The Australian dollar is trading at US65.8 cents, off yesterday’s two-month highs above US66 cents but supported by firmer commodity prices. Bitcoin slipped 1% to US$111,300.
What’s on today
Locally, Iluka Resources has suspended production at its Cataby and SR1 operations in Western Australia due to soft mineral sands demand, while Ramelius Resources has provided an update on its Dalgaranga integration study, due in the December quarter. Catalyst Metals is replacing Brickworks in the ASX 200 effective September 16.
Among corporate events, Brickworks, Metcash and Washington H. Soul Pattinson are hosting investor meetings. Vulcan Energy Resources will also report earnings.
Ex-dividends today include Adairs, Brambles, Medibank Private, Regis Resources and IDP Education, among others. On the macro front, China’s inflation data is due at 11:30 am AEST, followed by US producer price inflation tonight.