Australian shares are set to open slightly lower after Wall Street faltered overnight on disappointing tech results and renewed trade jitters. ASX 200 futures were down 15 points (-0.16%) at 8:30 am AEDT.
The local market finished Wednesday firmly in the red, with the benchmark index falling 0.71% to 9,030. A heavy sell-off in materials weighed on the session, while energy and financials provided limited support. Small caps lagged, and traders turned cautious ahead of another wave of corporate earnings and AGM updates.
Wall Street eases on tech misses and trade jitters
US markets pulled back overnight as weaker-than-expected results from Netflix and Texas Instruments dragged on sentiment. The S&P 500 fell 0.53%, the Dow Jones lost 0.71% and the Nasdaq slid 0.93%.
Netflix dropped 10% after its third-quarter revenue missed expectations and forward guidance disappointed investors. Texas Instruments sank 5.6% on soft margins and cautious commentary on chip demand, with peers Micron and ON Semiconductor also lower.
Adding to the unease, reports emerged that Washington is considering new restrictions on technology exports to China, reigniting trade tensions. That sent investors into defensive corners — healthcare, energy, property and consumer staples were the only US sectors to finish higher.
Despite the decline, bond yields were steady, with the 10-year Treasury hovering around 3.95%. Traders are now watching for tomorrow’s CPI data for direction on the inflation outlook and Fed rate expectations.
ASX 200 slips as miners retreat
Back home, the ASX 200 lost 64.7 points, or 0.7%, on Wednesday to close at 9,030, with resource stocks taking the brunt of the selling. Materials fell 3.1% as gold and lithium producers gave back recent gains.
Energy stocks were the bright spot, up 1.3% as oil prices rebounded. Tech rose modestly, while financials were broadly steady. Real estate and consumer staples edged lower, and the Small Ordinaries Index tumbled 1.7%, underscoring the cautious tone in the small-cap space.
Commodities and currencies
Commodities were mixed overnight as oil extended gains while gold steadied after a volatile start to the week.
- Oil: WTI crude rose 3.7% to US$59.38 a barrel as traders priced in stronger US demand and the potential impact of new sanctions on Russian energy.
- Gold: Prices eased 0.6% to around US$4,100 per ounce after Tuesday’s steep selloff, with profit-taking outweighing safe-haven demand.
- Copper: Gained 1.4% to US$4.97 per pound, supported by firmer industrial sentiment.
- Iron ore: Edged up to US$105.55 per tonne, holding recent ranges.
The Australian dollar was steady around US$0.649. Bitcoin slipped to US$107,000, extending its recent pullback.
Corporate highlights
Locally, Alcoa announced a new long-term energy contract and a US$60 million investment in a US aluminium smelter, alongside quarterly earnings that reaffirmed its alumina production guidance.
Elsewhere, Inghams was reported to be testing buyer interest, Qualitas saw a 30-million-share block trade at $3.62, and Telix Pharmaceuticals dosed the first patient in its SOLACE trial for metastatic bone pain. Treasury Wine Estates’ chairman lifted his shareholding after an on-market purchase.
What’s on today
It’s a packed day on the AGM calendar, with meetings scheduled for ASX, BHP, Brambles, Cochlear, South32, Super Retail Group and Insurance Australia Group, among others.
On the economic front, the Reserve Bank’s quarterly bulletin is due, while US data releases later tonight include jobless claims, existing home sales and regional manufacturing surveys.
The outlook
After a volatile week for global equities, traders are likely to stay selective heading into Thursday’s session. Stronger oil and a firmer US dollar point to continued rotation toward defensives, while gold’s trajectory will be closely watched by local miners.
With trade tensions back in the headlines and earnings season at full tilt, expect a choppy but measured open on the ASX.