ASX 200 futures are pointing down 1 point to 8783, signalling a flat start for Australian shares after the local market posted its strongest gain in three weeks.
The S&P/ASX 200 Index rose 0.6%, or 49.10 points, on Tuesday to close at 8808.50, with gains driven largely by the materials sector amid a sharp rally in base metals. Four of the 11 sectors finished higher, marking the best session for the benchmark since December 23.
Materials climbed more than 2% after copper surged above US$13,000 a tonne on the London Metal Exchange, supported by a weaker US dollar and mounting concerns over supply tightness outside the US. ETF Shares investment chief David Tuckwell said copper inventories outside the US remain thin after traders last year attempted to pre-empt potential Trump-era tariffs.
“Copper is ripping,” Tuckwell said, warning that any sudden lift in Chinese demand could trigger a supply squeeze.
Mining heavyweights led the advance, with BHP up 2.3% to $47.58, Rio Tinto rising 2.2% to $145.53 and South32 gaining 1.5% to $3.96. Gold stocks also rallied as bullion traded near record highs, with Northern Star jumping 3.6% to $26.35 and Greatland Resources surging 5.2% to $12.61.
Defence stocks were well supported amid elevated geopolitical tensions. DroneShield added 1.3% to $3.90, while Austal climbed 6.7% to $8.73.
Energy was the weakest sector as investors locked in recent gains following a spike in oil prices. Ampol fell 4.8% to $29.65 and Woodside eased 1.7% to $23.31, despite confirming the arrival from China of a major production platform for its Scarborough gas project.
US: Financials weigh as CPI keeps rate-cut bets alive
US sharemarkets finished lower on Tuesday as financial stocks dragged and early earnings commentary tempered sentiment. The Dow Jones fell 398 points, or 0.8%, while the S&P 500 slipped 0.2% and the Nasdaq edged down 0.1%.
Financials led losses after JPMorgan warned a proposed 10% cap on credit card interest rates could weigh on consumers. Visa dropped 4.5%, Mastercard slid 3.8% and JPMorgan shares fell 4.2%, despite reporting better-than-expected quarterly profit.
Delta Air Lines declined 2.4% after issuing a softer-than-expected 2026 profit outlook, while Super Micro Computer dropped 5% following a bearish initiation from Goldman Sachs. Moderna surged 17.1% after signalling progress toward a combined flu and Covid vaccine.
December CPI rose 0.3%, in line with expectations, while annual inflation held at 2.7%. Core CPI increased 0.2%, undershooting forecasts and reinforcing expectations for interest rate cuts later this year.
Europe: Construction stocks drag indices lower
European sharemarkets edged lower, led by a 2.6% decline in construction stocks. Rockwool plunged 7.7% after reports Russia ordered temporary administration over its local units.
- The FTSEurofirst 300 slipped 0.1%.
- London’s FTSE 100 closed marginally weaker.
Currencies: US dollar firm
The US dollar strengthened, pushing the euro down to around US$1.1645 and the Australian dollar to near US66.80 cents. The Japanese yen weakened to around JPY159.10 per US dollar.
Commodities: Oil jumps, gold near record highs
Oil prices surged more than 2% on concerns over potential disruptions to Iranian crude exports.
- Brent rose 2.5% to US$65.47 a barrel.
- US crude gained 2.8% to US$61.15.
- Gold futures slipped 0.3% to US$4,599.10 an ounce after hitting a record intraday high of US$4,634.33.
- Iron ore eased 0.3% to US$107.90 a tonne amid pressure on Chinese steelmaker margins.
Looking ahead
In Australia, job vacancies data is due, alongside China’s international trade figures. In the US, investors will focus on retail sales, producer prices, existing home sales and earnings from Bank of America, Citigroup and Wells Fargo.