Australian shares are poised to open weaker, with ASX 200 futures pointing down 47 points, or 0.5%, to 8,683 near 7.25am AEDT.
The softer lead follows a mixed session on Wall Street and continued uncertainty surrounding geopolitical tensions in the Middle East.
Despite the negative futures signal, the local market posted solid gains in the previous session. The S&P/ASX 200 rose 50.9 points, or 0.6%, to 8,743.50 on Wednesday as investors rotated into heavyweight mining and banking stocks.
Those gains came even as most sectors struggled, with only four of the index’s 11 sectors finishing higher.
The advance was supported by rising expectations that the Reserve Bank of Australia may lift interest rates at its upcoming board meeting. Hawkish comments from RBA deputy governor Andrew Hauser prompted a sharp shift in market expectations, pushing the Australian dollar higher and driving bond yields upward.
Wall Street slips as investors weigh inflation, oil and geopolitics
US markets finished mixed as investors assessed fresh inflation data and the implications of rising oil prices amid escalating Middle East tensions.
The Dow Jones Industrial Average fell 0.6%, while the S&P 500 edged 0.1% lower. The Nasdaq Composite managed a modest 0.1% gain.
Consumer staples led declines across eight of the S&P 500’s 11 sectors, while the financials sector fell 0.8%, marking its fifth consecutive day of losses.
Reports that JPMorgan Chase had marked down the value of certain loans held by private credit groups and was tightening lending to the sector weighed on asset managers, with Blue Owl Capital and Ares Management dropping almost 5% each.
In contrast, Oracle surged 9.2% after forecasting that demand from the AI data centre boom would drive revenue above expectations through to 2027.
Travel stocks sensitive to oil prices were slightly weaker, with Delta Air Lines and cruise operator Carnival both edging lower. Campbell’s also dropped 7.1% after cutting its annual outlook and warning that revised US tariffs could pressure performance in the second half.
US inflation data showed consumer prices rose 0.3% in February, following a 0.2% increase in January. On an annual basis, the Consumer Price Index rose 2.4%, broadly in line with economists’ expectations.
European markets fall as Middle East conflict weighs on sentiment
European sharemarkets declined as investors assessed the economic implications of the ongoing Middle East conflict and digested the latest US inflation data.
Germany’s DAX led losses, falling 1.4%, with defence contractor Rheinmetall tumbling 8% after issuing guidance that disappointed analysts on profit margins and free cash flow for 2026.
The pan-European FTSEurofirst 300 index slipped 0.6%, while the UK’s FTSE 100 also closed down 0.6%.
The regional pullback reflects investor caution as geopolitical risks remain elevated and commodity markets react to potential disruptions.
US dollar strengthens as risk sentiment softens
Major currencies weakened against the US dollar as investors shifted toward safe-haven assets.
- The euro dipped to US$1.1570.
- The Japanese yen weakened to JPY158.93.
- The Australian dollar slipped 0.2% to US71.54 cents, retreating slightly after the previous session’s surge driven by hawkish signals from the Reserve Bank of Australia.
Oil surges while metals show mixed performance
Global oil prices jumped as tensions in the Middle East raised concerns over potential supply disruptions.
Brent crude climbed 4.8% to US$91.98 a barrel, even after the International Energy Agency agreed to release a record 400 million barrels from emergency reserves. Shipping through the strategic Strait of Hormuz remains at risk, supporting crude prices.
Base metals traded mixed, with copper futures falling 1% while aluminium gained 1.4% on supply concerns.
- Gold futures eased 1.2% to US$5,179 an ounce as the stronger US dollar weighed on the precious metal.
- Iron ore futures, however, rose 0.6% to US$103.53 a tonne amid fears that the conflict could tighten global supply.
Looking ahead
In Australia, several companies are scheduled to trade ex-dividend today, including Perpetual, Pepper Money, Viva Energy, McMillan Shakespeare, Regis Healthcare, Super Retail, Endeavour Group, AUB and Australian Clinical Labs.
In the US, the earnings calendar is winding down, with Lennar, Wheaton Precious Metals, Adobe, Dollar General, Ulta Beauty and Dick’s Sporting Goods set to report.