ASX 200 futures were down 10 points, or 0.11%, at 8:30 am AEDT, pointing to a softer start for Australian equities.
The local market is set to ease after mixed trading on Wall Street overnight, with oil and gold prices lower and some profit-taking evident following a strong start to 2026 for US equities.
The ASX 200 rose about 0.3% on Wednesday, with gains broad-based. IT stocks outperformed, climbing more than 1.5%, while every sector except financials and energy finished higher.
US: Records early, risk-off late as policy chatter hits housing and defence
US equities finished mixed overnight as early optimism faded late in the session.
The S&P 500 slipped 0.4% after setting its second intraday record of 2026, while the Dow Jones Industrial Average fell 0.9% from a record close the previous day. The Nasdaq 100 edged up 0.2%.
Markets reacted to a series of social media posts from US President Donald Trump that pressured specific sectors. US homebuilders sold off sharply after Trump floated potential measures to prevent large institutional investors from buying single-family homes. D.R. Horton fell 3.1%, while Blackstone briefly dropped more than 9% before paring losses to end down 5.6%. Apollo Global Management slid 5.5%.
Defence stocks also weakened after Trump said he would block dividends and share buybacks until production issues are resolved. Northrop Grumman fell 5.5% and Lockheed Martin lost 4.8%.
In contrast, large-cap technology stocks rebounded. Nvidia and Microsoft gained about 1% each, while Alphabet climbed more than 2% as investors rotated back into AI-related names.
“Investors have come into 2026 with a similar playbook to last year: buy tech and forget about it,” said Jake Dollarhide, chief executive officer of Longbow Asset Management.
Elsewhere, Warner Bros Discovery rose 0.3% after again rejecting a buyout bid from Paramount, while Netflix added 0.1%.
FTSE: Energy drag kicks in after record run, metals soften
The FTSE 100 retreated from record highs, ending the session down 74.52 points at 10,048.21.
Energy stocks led the decline after Trump agreed to import up to $2 billion of Venezuelan crude, raising expectations of increased supply. BP fell 3.2% and Shell dropped 2.6%, with their heavy index weightings weighing on the broader market.
Mining stocks also eased as copper and precious metals prices weakened, dragging down Antofagasta and Fresnillo.
Commodities: Supply headlines pressure oil and bullion, iron ore holds up on China hopes
Oil prices fell sharply on expectations of increased Venezuelan crude supply. West Texas Intermediate dropped 2% to settle just below $US56 a barrel, briefly trading under $US60 during the session.
Gold and silver also declined, with Goldman Sachs warning investors to brace for increased volatility, particularly in silver.
In contrast, iron ore futures traded near $US109 a tonne in Singapore, supported by hopes of further monetary easing by China’s central bank and restocking by Chinese steel mills ahead of the Spring Festival holidays from February 15 to 23.
Capital Economics’ James Reilly said recent commodity price swings were largely driven by supply-side factors rather than demand. He expects commodity and equity prices to diverge through 2026, with commodities falling while equity markets continue to rise.