Australian shares look poised to open firmer on Thursday as global markets extended their rebound for a fourth straight session. ASX 200 futures were up 21 points (+0.24%) at 9:00 am AEDT, tracking broad-based strength across US and European equities and firmer commodity prices. The optimism comes despite the looming Thanksgiving break in the US, which is expected to thin trading volumes heading into the weekend.
Wall Street extends gains as rate-cut hopes firm
US stocks pushed higher again overnight, with investors leaning harder into expectations that the Federal Reserve will deliver a December rate cut. The S&P 500 closed 0.69% higher, the Dow added 0.67% and the Nasdaq rose 0.82%, supported by renewed buying in tech.
Economic data was mixed but broadly supportive of the “soft landing” view. Weekly jobless claims fell to their lowest since April, suggesting the labour market is easing rather than weakening sharply. Meanwhile the Fed’s latest Beige Book pointed to a stagnant but stable economy, with softer consumer spending and further cooling in hiring.
Bond markets were steady, with long-end yields holding near 4%. The US dollar softened for a second session, while volatility eased, with the VIX down more than 7%.
Europe followed Wall Street higher. Germany’s DAX rose 1.11% and the UK’s FTSE 100 gained 0.85% after the UK’s new budget delivered fewer surprises than feared and gave gilts a lift. Asian markets were similarly constructive, led by Japan’s Nikkei, up 1.85%.
ASX climbed yesterday as resources and small caps led
The S&P/ASX 200 closed 69.5 points higher on Wednesday (+0.81%), with the domestic session dominated by a strong run from major miners and lithium names. Materials rose 1.84%, supported by firmer metals prices and risk-on sentiment across commodities. Health care, consumer discretionary and energy also posted solid gains.
Small caps outperformed sharply — the Small Ords jumped 1.41% — but tech lagged, dragged by weakness in higher-multiple names after recent volatility offshore. Financials landed modestly higher, though the big banks were mixed.
The Australian dollar strengthened after hotter-than-expected inflation data triggered a sharp move higher in local bond yields. The 10-year ACGB climbed to its highest level since May, widening the yield spread against the US Treasury 10-year to the largest in more than three years, Westpac economist Ryan Wells noted.
Gold strengthens, copper rallies, oil edges higher
Gold continued its upward march, adding another 0.77% overnight to sit above US$4,160 an ounce. Silver was even stronger, up more than 3%.
Aluminium rose 2% and Copper was up 1.5%, buoyed by improving risk appetite and supportive manufacturing signals in Asia. Iron ore was steady around US$105/tonne, while lithium carbonate prices in China gained more than 1%.
Oil recovered modestly, with WTI up 1.0% at US$58.60 and Brent up 0.9%. Analysts remain cautious on the medium-term outlook, however, with several major banks warning of potential oversupply.
Bitcoin briefly pushed above US$90,000 before easing slightly, supported by thin holiday liquidity and a broader rebound across risk assets.
Local corporate news to watch
A handful of local corporate updates may help shape the early tone on the ASX. Rio Tinto is reportedly preparing to kick off a sale process for its California boron assets, a divestment that could fetch as much as US$2 billion. Bellevue Gold reaffirmed that Deacon North production remains on track for June 2026, while the AFR reported that Beach Energy has signalled fresh interest in the Narrabri gas project.
Broker moves were mixed across the board:
- Upgrades landed for WiseTech Global, Temple & Webster and Objective Corp.
- Harvey Norman, meanwhile, was marked down to neutral.
Data and events
Australia releases private capital expenditure data at 11:30 am AEDT, a key read on business investment heading into year-end. Several AGMs and micro-cap events are scheduled, and insurer Tower reports earnings.
With the US out tonight for Thanksgiving and local bond markets still digesting yesterday’s hot CPI print, the ASX may face a slower afternoon despite the positive global lead. But for now, momentum is on the market’s side — and futures are pointing higher.