Australian shares are poised to open lower, following a volatile session that saw the local market post its steepest decline in over a month. ASX 200 futures were down 23 points, or 0.3%, to 8855 this morning.
On Wednesday, the S&P/ASX 200 Index dropped 105.80 points, or 1.2%, to 8843.60, marking the biggest one-day fall since March 19. Losses were broad-based, with six of the 11 sectors finishing in negative territory.
The decline was driven largely by a sharp earnings downgrade from Cochlear, which rattled the healthcare sector and overshadowed any geopolitical relief from US President Donald Trump’s decision to extend the Iran ceasefire indefinitely. While the US will refrain from further strikes, its blockade of the Strait of Hormuz remains in place, with shipping disruptions ongoing.
Healthcare stocks led the sell-off, with Cochlear plunging 40.7% to a 10-year low of $99.58 after cutting its 2025–26 profit guidance. CSL fell 5.7% to a nine-year low, while ResMed shed 2.5%.
US markets rally on earnings and tech strength
US sharemarkets closed higher overnight, supported by stronger-than-expected earnings and continued momentum in technology stocks.
The Dow Jones rose 0.7%, while the S&P 500 gained 1.1% and the Nasdaq advanced 1.6%. Information technology stocks led the gains, climbing 2.3%, with the semiconductor index extending its record run to a 16th consecutive session of gains.
Micron Technology surged 8.5%, while Seagate rose 3.6% following a broker upgrade. GE Vernova jumped 13.5% after lifting its revenue forecast, and Boston Scientific added 9.1% on solid quarterly results. Boeing shares also climbed 5.5% after reporting a smaller-than-expected loss.
However, United Airlines fell 5.5% after issuing weaker profit guidance, citing higher fuel costs.
Europe slips as earnings and geopolitics weigh
European markets edged lower, marking a third straight session of declines as investors weighed corporate earnings alongside ongoing geopolitical uncertainty.
The pan-European FTSEurofirst 300 index fell 0.4%, while the UK FTSE 100 slipped 0.2%.
Sector performance was mixed. Energy stocks rose 2.3% on the back of higher oil prices, while materials and technology posted modest gains. ASM International climbed 7.1% after issuing upbeat revenue guidance.
In contrast, telecommunications stocks fell 1.9%, with Deutsche Telekom down 4.8% amid reports it is considering a major merger with T-Mobile US.
Currencies mixed; bond yields edge higher
Currency markets were mixed against the US dollar.
- The euro fell 0.3% to US$1.1707.
- The Japanese yen eased 0.1% to 159.49 per dollar.
- The Australian dollar edged 0.1% higher to US71.58 cents.
US Treasury yields ticked higher, reflecting cautious sentiment around the extended Iran ceasefire. The 10-year yield rose to 4.30%, while the 2-year yield increased to 3.80%.
Commodities volatile amid supply concerns
Oil prices remained in focus, with Brent crude slipping 0.7% in Asian trade to US$97.81 a barrel after a strong overnight rally that saw prices settle up 3.5% at US$101.91.
The gains were driven by a larger-than-expected drawdown in US fuel inventories and reports of attacks on container ships in the Strait of Hormuz, heightening supply concerns.
Base metals were broadly higher.
- Copper rose 2% to seven-week highs and aluminium up 1.2%.
- Gold prices rebounded 0.7% to US$4,753 an ounce on bargain hunting.
- Iron ore was little changed, up 0.1% to US$107.11 a tonne.
Looking ahead
Investor focus in Australia will turn to a busy day of quarterly updates from companies including Fortescue, Mirvac, Newmont, PLS Group, Perseus Mining and Sandfire Resources. The latest Purchasing Managers’ Index (PMI) data is also due.
In the US, earnings season continues with results expected from American Express, Blackstone, Thermo Fisher Scientific, Intel and Gilead Sciences.