ASX 200 futures were down 3.5 points (-0.04%) at 9:15 am AEDT on Monday, pointing to a steady open as local markets ease into the first full week of 2026 amid lower liquidity and limited fresh catalysts.
Australian equities ended the first trading session of the year marginally higher on Friday after recovering from early weakness, with gains uneven across sectors and driven largely by stock-specific developments rather than broader risk appetite.
ASX: Selective buying, energy supports
Friday’s modest lift masked a cautious tone beneath the surface. Energy stocks provided support, extending a rebound that began late last year, while uranium names also attracted buying, continuing to decouple from broader resources performance.
Banks edged higher, supported by expectations that interest rates will remain restrictive for longer, a backdrop that continues to underpin margins even as credit growth remains subdued. By contrast, gold stocks lagged, giving back some recent gains despite bullion prices remaining elevated. The pullback appeared more rotational than fundamental, following a strong finish to 2025.
Individual stocks saw sharper moves. Northern Star Resources fell heavily after lowering production guidance, highlighting ongoing sensitivity to operational risk among large-cap miners. Nickel Industries rose strongly after securing a strategic investment linked to its Indonesian nickel-cobalt assets, reinforcing investor interest in assets tied to downstream battery and specialty metals supply chains.
Mesoblast shares edged up following a board leadership change, a move that followed heightened governance scrutiny late last year.
Wall Street: Mixed start to 2026
US sharemarkets began 2026 with modest gains, though leadership was uneven. The Dow Jones and S&P 500 finished higher, while the Nasdaq was little changed, reflecting continued rotation within US equities rather than a broad-based rally.
Technology stocks remain a central driver, though gains have narrowed. Semiconductor names continued to attract interest, while parts of the broader tech sector traded more cautiously. Investors appear increasingly focused on earnings durability rather than growth narratives alone.
Commodities and currencies
Gold and silver prices rose into the new year, extending gains recorded through 2025 as investors continue to balance slowing global growth against the prospect of eventual rate cuts. Industrial metals were mixed, with aluminium holding above US$3,000 a tonne, while iron ore prices were largely steady.
Oil prices were little changed, though energy markets remain alert after the US detained Venezuela’s president over the weekend, raising fresh geopolitical risk even as broader concerns about global oversupply persist.
The Australian dollar strengthened slightly, trading near 67 US cents, supported by a steadier offshore lead rather than domestic data.
What to watch
In small caps today, Terrain Minerals Ltd (ASX:TMX, OTC:TMXAF) has reported steady progress in its December quarterly, with drilling under way at the Lightning gold-silver prospect within its 100%-owned Smokebush project in Western Australia and a mining lease granted during the period. The company said it remains on track to work toward an initial resource by mid-2026 and is now funded following $2.8 million in placements completed during the quarter.
With many global markets still ramping back up after the holiday period, attention turns to global PMI surveys and US labour market data later in the week. Those releases are likely to shape expectations around the Federal Reserve’s policy outlook for early 2026.
For now, the ASX appears set to trade cautiously, with stock selection and sector rotation likely to matter more than index-level moves as liquidity gradually returns.