Australian shares are set to open modestly lower, with ASX 200 futures down 10 points, or 0.1%, at 8,824.
The local market closed higher for a fourth consecutive session on Thursday, driven by renewed strength in the resources sector as investors responded to signs of resilience in China’s export data. The S&P/ASX 200 added 41.1 points, or 0.5%, to finish at 8,861.7, with 6 of the 11 sectors ending in positive territory.
Materials led the gains, with BHP advancing 2.6%, while Rio Tinto and Fortescue both rose 0.4%. Energy stocks also pushed higher, with Woodside up 0.4% and Santos gaining 0.3%.
Gold stocks were mixed as bullion eased from recent highs. Northern Star Resources climbed 1.4%, while Evolution Mining fell 1.4% and Newmont slipped 1.7%.
Technology stocks underperformed amid a broader rotation away from tech seen in offshore markets. WiseTech Global fell 1.0%, TechnologyOne lost 1.1% and Xero dropped 4.1%.
The Australian dollar was trading near US66.81¢ shortly after 5pm AEDT.
Wall Street: chip stocks and banks drive rebound
US markets rebounded on Thursday, led by a rally in semiconductor stocks after Taiwan Semiconductor Manufacturing Company flagged robust annual growth and expanded US manufacturing plans. TSMC shares jumped 4.4%, lifting the broader chip sector.
Nvidia rose 2.1%, while Broadcom and Micron Technology gained 0.9% and 1.0%, respectively. The Philadelphia Semiconductor Index climbed 1.8%, with the S&P 500 technology sector up 0.5%.
Financials also supported the market, with Goldman Sachs surging 4.6% and Morgan Stanley jumping 5.8% after reporting stronger quarterly profits driven by dealmaking activity. BlackRock gained 5.9% as rising markets boosted fee income and pushed assets under management to a record US$14.04 trillion.
At the close, the Dow Jones rose 293 points, or 0.6%, the S&P 500 gained 18 points, or 0.3%, and the Nasdaq added 58 points, or 0.2%.
US economic data showed initial jobless claims fell by 9,000 to 198,000, well below expectations. Manufacturing surveys also surprised to the upside, with the Philadelphia Fed index rising to 12.6 and the New York Empire State index lifting to 7.7.
Europe: stocks hit fresh record on tech strength
European sharemarkets pushed to a new record high, buoyed by strong gains in technology stocks. The FTSEurofirst 300 index advanced 0.4%, while the UK’s FTSE 100 added 0.5%.
Technology stocks rose 2.3%, reaching levels last seen in 2000. ASML surged 11.2% to a record high, surpassing a US$500 billion market capitalisation, following positive read-through from TSMC’s outlook.
Currencies: Aussie dollar firms, Euro slips
Currency markets were mixed against the US dollar.
- The euro eased from US$1.1643 to around US$1.1605 by the US close.
- The Australian dollar strengthened earlier, rising from US66.74¢ to US67.08¢, before settling near US66.95¢.
- The Japanese yen weakened slightly, trading near JPY158.65 per US dollar.
Commodities: oil, metals and gold retreat
Oil prices fell sharply, snapping a five-day rally.
- Brent crude dropped US$2.76, or 4.1%, to US$63.76 a barrel.
- US Nymex crude slid US$2.83, or 4.6%, to US$59.19. The decline followed comments from US President Donald Trump suggesting tensions in Iran were easing, reducing supply disruption concerns.
Base metals retreated, with copper futures down 1.0% from record highs and aluminium slipping 0.6%.
- Gold prices also eased, with futures down US$12.00, or 0.3%, to US$4,623.70 an ounce, pressured by a stronger US dollar and reduced safe-haven demand. Spot gold was trading near US$4,608.
- Iron ore futures fell US29¢, or 0.3%, to US$107.39 a tonne as steel production in China softened amid a slow post-holiday restart.
Looking ahead
In Australia, overseas arrivals and departures data is due. In the US, investors are watching industrial production data and the NAHB housing market index, alongside earnings from Regions Financial, M&T Bank, PNC Financial Services and State Street.