Australian shares are set to open higher, tracking a strong rally on Wall Street led by record gains in the Dow Jones Industrial Average and a surge in energy stocks following the US military's intervention in Venezuela.
SPI futures point to the S&P/ASX 200 rising 30 points, or 0.3%, to 8,746 at the open.
Corporate activity was in focus locally, with industrial conglomerate SGH Limited confirming it has launched a joint bid alongside Nasdaq-listed Steel Dynamics to acquire and subsequently split up BlueScope Steel.
SGH said the all-cash offer of $30 per share represented a “compelling value proposition and highly attractive premium” for BlueScope shareholders.
Engineering group Monadelphous secured a $175 million construction contract with BHP for the miner’s car dumper project at Finucane Island in Port Hedland, Western Australia.
Meanwhile, dual-listed technology group Life360 reported it has surpassed 50 million monthly active users in the United States, positioning the company among the largest first-party family networks in the country, alongside platforms such as Netflix, Spotify and Pinterest.
Wall Street charges higher as Dow hits record on energy-led rally
US equities surged overnight, with the Dow Jones climbing to a fresh all-time high as energy stocks powered markets higher.
The Dow rose 522 points, or 1.2%, to 48,902. The S&P 500 added 44 points, or 0.6%, to 6,902, while the Nasdaq gained 151 points, or 0.7%, to 23,386. The Russell 2000 climbed 26 points, or 1.1%, to 2,508.
Energy led eight of the 11 S&P 500 sectors higher, with the S&P 500 energy index reaching its highest level since March 2025. Exxon Mobil and Chevron were among the standout performers.
The rally followed weekend developments in Venezuela, where US forces moved to remove President Nicolás Maduro. President Donald Trump said the US would temporarily “run” the country while American companies invest billions to rebuild its ageing oil infrastructure.
Markets are pricing in the prospect of US firms gaining access to Venezuela’s vast oil reserves, the largest in the world.
“From a market perspective, what happened last Saturday in Venezuela means higher volatility in oil prices, risk premia creeping back into asset prices, and markets reacting to political shockwaves,” said Swissquote senior analyst Ipek Ozkardeskaya. “But overall, the feeling is much more relaxed than that.”
Investors are also turning their attention to key US economic data this week, starting with the ISM manufacturing index on Monday, followed by December’s nonfarm payrolls report on Friday, which could shape expectations for the Federal Reserve’s next policy move.
With the so-called Santa Claus rally period ending, traders are watching closely to see whether US equities can hold gains amid rising geopolitical and macroeconomic uncertainty.
In contrast, London markets were more subdued, with the FTSE 100 adding just 13 points to 9,965 after briefly topping the 10,000 mark earlier in the session.
Commodities jump as copper hits record and oil risks resurface
Commodity markets also surged, led by copper, which touched $US13,000 a tonne for the first time.
Benchmark copper futures jumped as much as 4.3% in London, extending last year’s powerful rally as mine disruptions and trade dislocations stoke concerns over supply shortages. A strike at a major Chilean mine added to pressure at a time of accelerating demand driven by data centres, electrification and battery production.
Oil markets were supported by speculation that political change in Venezuela could unlock new production. According to Reuters, the Trump administration plans to meet with US oil executives this week to discuss boosting Venezuelan output.
Attention also turns to the annual CES technology conference in Las Vegas this week, which could provide an early test of investor enthusiasm for AI and tech.