S&P/ASX 200 futures point to a firmer start, tracking modest upside in offshore markets, with contracts higher on Wednesday amid reporting season momentum. The benchmark closed Tuesday up 21.8 points or 0.24% after retreating from intraday highs.
Volumes were lighter than usual with Wall Street closed for Presidents’ Day and China shut for Lunar New Year, dampening offshore leads.
BHP Group (ASX:BHP) provided the standout support, surging 4.7% to a record high after delivering a stronger-than-expected half-year result. The miner benefited from robust copper earnings and lifted its interim dividend 44% to US$0.73, reinforcing the market’s focus on copper exposure amid structural supply themes.
However, strength in BHP masked weakness across 7 of the 11 major sectors.
Information Technology (ASX:XIJ) slipped 0.3%, giving back some of Monday’s gains as AI-related volatility persisted. WiseTech Global (ASX:WTC) fell 1.6% and NextDC (ASX:NXT) eased 0.4%.
Reporting season continued to drive stock-specific moves. JB Hi-Fi (ASX:JBH) rose 8.1% on broker upgrades, while Baby Bunting (ASX:BBN) gained 8.6% after tightening profit guidance. In contrast, Sims (ASX:SGM) fell 4% after swinging to a half-year loss, Reliance Worldwide (ASX:RWC) slid 9% on a softer first half and Seek (ASX:SEK) dropped 3.2% after flagging weaker volumes.
What’s expected of the ASX today
- Traders are positioned for a positive open, though caution may persist given mixed global leads.
- The Wage Price Index (WPI) is due and is likely to be a key early driver. A stronger-than-expected print could reinforce concerns around sticky inflation and influence interest rate expectations.
- Earnings season remains front and centre, with results scheduled from NAB, Magellan, Mirvac, Netwealth, Santos and Suncorp. CBA trades ex-dividend, which may weigh on the index.
- With parts of Asia still quieter due to Lunar New Year, local data and corporate updates are expected to play a larger role in setting direction.
US: Financials lead as markets stabilise
US equities closed modestly higher as investors attempted to regain footing following another losing week.
At the close, the Dow Jones rose 32 points or 0.1%, the S&P 500 gained 7 points or 0.1% and the Nasdaq added 32 points or 0.1%.
Financials outperformed, with the S&P 500 financials index up 1%. Goldman Sachs and JPMorgan Chase rose between 1.2% and 1.5%, supporting the Dow.
The information technology sector pared earlier losses to finish 0.5% higher, aided by gains of between 1.2% and 3.2% in Nvidia and Apple. However, software stocks remained under pressure, with the broader S&P 500 software index down 1.6%. CrowdStrike fell 3.6%, Adobe lost 1.3% and Salesforce declined 2.9%.
Materials and energy stocks dropped between 1.2% and 1.4%, tracking softer commodity prices.
In corporate moves, Norwegian Cruise Line jumped 12.2% after activist investor Elliott disclosed a stake of more than 10%, while Genuine Parts fell 14.6% on plans to split its automotive and industrial divisions.
Investors now look ahead to US durable goods, housing starts, building permits and industrial production data, along with minutes from the latest Federal Reserve meeting.
Europe: Banks and healthcare extend gains
European markets closed higher, with the pan-European FTSEurofirst 300 index up 0.5%.
Banks extended the prior session’s rally, rising 1.3%, while healthcare stocks climbed 1.4% to their highest levels since September 2024.
In London, the FTSE 100 gained 0.8% as signs of a cooling labour market bolstered expectations of a potential interest rate cut next month. Britain’s unemployment rate rose from 5.1% to 5.2% in the 3 months to December, its highest level in over a decade outside the pandemic period.
Currencies and commodities: Oil, copper and gold retreat
Currency markets were mixed against the US dollar.
- The euro rose from US$1.1805 to US$1.1852 and was near US$1.1850 at the US close.
- The Australian dollar lifted from US$0.7028 to US$0.7089 and was near US$0.7080.
- The Japanese yen weakened from ¥152.71 to ¥153.90 per US dollar, trading near ¥153.25 late in US trade.
Oil prices fell to two-week lows amid signs of easing tensions between the US and Iran after progress was flagged in nuclear talks. Brent crude dropped US$1.23 or 1.8% to US$67.42 a barrel, while US Nymex crude shed US$0.56 or 0.9% to US$62.33 a barrel.
Base metals retreated.
- Copper futures were down 2.8% as a stronger US dollar and rising London Metal Exchange inventories weighed on sentiment. Aluminium fell 1.5%.
- Gold futures declined US$140.40 or 2.8% to US$4,905.90 an ounce, pressured by reduced safe-haven demand and US dollar strength. Spot gold traded near US$4,875 at the US close.
- Iron ore futures edged up US$0.08 or 0.1% to US$99.74 a tonne in thin trade, with China out for the Lunar New Year holiday.