Australian shares are set to open higher, tracking gains on Wall Street as sentiment improves on prospects of easing Middle East tensions.
ASX 200 futures are up 25 points, or 0.3%, to 8601, following a strong rebound in the previous session where the benchmark surged 1.9% to 8534.30 — its biggest gain in six weeks.
The rally added around $55 billion in market value, driven by a sharp rotation back into recently sold-off stocks as investors responded to softer-than-expected February inflation of 3.7% and signs of diplomatic progress between the US and Iran.
Materials stocks led the recovery, jumping 4.4%, supported by a 2.1% rise in gold prices. Newmont climbed 8.9%, Northern Star rose 7%, and Bellevue Gold gained 11.1%. Retailers also advanced, while energy stocks lagged as oil prices retreated.
IG market analyst Tony Sycamore said there was “more substance” behind the rebound but cautioned that tangible progress, including reopening the Strait of Hormuz, would be key to sustaining confidence.
US: Markets mixed as geopolitics and tech weigh on sentiment
US markets finished lower in choppy trading as investors balanced hopes of easing tensions with lingering uncertainty.
The Dow Jones fell 0.2%, the S&P 500 lost 0.4%, and the Nasdaq declined 0.8%.
Technology stocks led declines after Amazon flagged plans to develop AI agents targeting sales and business functions, pressuring software names. Microsoft fell 2.6%, Salesforce dropped 6.2%, and Atlassian slid 8.4%.
Financials and energy stocks provided some support, while private credit concerns resurfaced after reports of redemption limits at major funds including Ares Management.
Meanwhile, US bond yields rose, with the 10-year yield up 6 basis points to 4.40% and the 2-year yield climbing 10 basis points to 3.93%, reflecting renewed inflation concerns.
Europe: Shares rise on de-escalation hopes
European markets closed higher, supported by optimism that tensions in the Middle East could ease.
The FTSEurofirst 300 gained 0.4%, while the UK FTSE 100 rose 0.7%.
Telecom and energy stocks led gains, rising 2.5% and 2.4% respectively, while defence stocks fell 1.1%. Financials also edged lower.
Among individual names, Puig jumped 13% on merger discussions with Estée Lauder, while Infrastructure Wireless Italiane surged 9.9% on takeover speculation. SAP declined 4% following a broker downgrade.
Currencies: US dollar strengthens as caution persists
Major currencies weakened against the US dollar as optimism around a swift resolution to the conflict faded.
- The euro fell 0.3% to US$1.1583.
- The Japanese yen slipped 0.4% to 158.99 per dollar.
- The Australian dollar declined 0.6% to US69.68 cents.
Commodities: Oil volatile, gold steadies, metals mixed
- Oil prices remained volatile, rising 5.2% overnight with Brent crude settling at US$104.49 per barrel amid ongoing supply concerns and uncertainty around negotiations.
- Gold edged lower by 0.1% to US$4,402 an ounce as markets weighed inflation and rate implications, while base metals were mixed.
- Copper fell 0.3%, aluminium rose 2%, and iron ore was largely unchanged at US$106.10 per tonne.