ASX 200 futures were up 30 points (+0.34%) at 9:30 am AEDT on Friday, pointing to a firmer end to the week after the local market notched a second straight gain on Thursday, supported by a rebound in banks and strength across select growth sectors.
The S&P/ASX 200 rose 0.29% in the previous session, extending its early-year recovery as investors continued to rotate back into areas that had been under pressure late last year, while resources paused after a strong run.
ASX: Banks steady, growth sectors extend rebound
Thursday’s advance was driven by renewed interest in information technology, healthcare and consumer discretionary stocks, which posted a second consecutive day of gains. Banks also stabilised after sharp losses earlier in the week, helping lift the broader index despite softer performance from miners.
Lithium stocks remained a standout, continuing a sharp rebound that has gathered pace since the turn of the year, while defence-linked names again attracted buying amid elevated geopolitical uncertainty. The moves suggested a market becoming more selective, with capital rotating rather than exiting risk altogether.
Friday has seen a quiet start, including for juniors, but Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) reported solid December-quarter production of 43,663 ounces of gold equivalent, alongside a strengthened balance sheet, with cash, bullion and listed investments rising to $246 million. The company reaffirmed its FY26 production guidance, underscoring steady output across its operating mines.
Wall Street: Breadth improves as tech pauses
Overnight, US markets were largely directionless at the headline level, with the S&P 500 finishing near flat after an uneven session. Beneath the surface, however, market breadth improved materially, with smaller companies outperforming and the equal-weight index posting a solid gain.
Technology stocks took a breather after leading recent rallies, while energy, consumer staples and materials were among the strongest performers. With no major data releases overnight, investors largely remained in wait-and-see mode ahead of key labour market figures and the start of earnings season.
Commodities and currencies
Commodity markets were mixed but active. Oil prices surged more than 4%, lifting energy stocks globally, as geopolitical developments and positioning dynamics refocused attention on supply risks despite a broadly bearish consensus. Gold held near recent highs, while base metals eased modestly after strong gains earlier in the week.
The Australian dollar slipped below 67 US cents, tracking a firmer US dollar and slightly higher bond yields, though local long-term yields have eased from recent peaks.
What to watch
Attention now turns to China’s December inflation data later today, followed by the US non-farm payrolls report overnight, which looms as the key macro test for markets heading into mid-January. The jobs data is likely to shape near-term expectations around interest rates and risk appetite, particularly after recent signs of cooling in parts of the global economy.
With futures pointing higher and sector leadership broadening, the ASX looks set to close the week on a steadier footing — though volatility may pick up as major data and earnings catalysts come into view.