Australian shares are set to open higher on Friday, with ASX 200 futures up 35 points, or 0.4%, to 8681, as oil prices retreated amid growing speculation the US and Iran are close to an agreement to end hostilities and reopen the Strait of Hormuz.
The expected gains follow a strong session on Thursday, when the S&P/ASX 200 rose 125.1 points, or 1.5%, to 8621.7 — its biggest one-day gain in six weeks.
The rally came after weaker-than-expected labour market data lifted hopes the Reserve Bank of Australia may not need to tighten interest rates further.
Australia’s unemployment rate unexpectedly rose to 4.5% in April, while the economy shed 18,600 jobs against forecasts for a 15,000 increase.
IG market strategist Tony Sycamore said the weaker jobs data was positive for equities because it reduced the likelihood of further aggressive RBA rate hikes, offering relief to rate-sensitive sectors including financials, real estate and consumer discretionary stocks.
Banks, miners and property stocks lift market
Banks helped drive the market higher, with Commonwealth Bank rising 0.9% to $164.13, ANZ gaining 1.6% to $35.32, Westpac adding 2.2% to $36.28 and National Australia Bank advancing 2.3% to $37.66.
Real estate stocks were also stronger, with Goodman Group up 2.8% to $30.85 and Mirvac rising 2.4% to $1.70.
Gold miners gained as bullion rebounded towards US$4,550 an ounce. Newmont rose 2.2% to $149.79, Greatland Resources climbed 5% to $12.91 and Evolution Mining added 3.8% to $11.80.
BHP snapped a four-day losing streak, rising 3.1% to $59.10, while James Hardie jumped 5.4% to $27.99 after releasing its full-year results.
Energy stocks lagged as oil prices weakened, with Woodside Energy down 2.1% to $31.83 and Ampol easing 0.1% to $35.18.
Stocks in focus
- Guzman y Gomez rallied 13% to $18.80 after RBC Capital Markets upgraded the fast-food retailer to “outperform”, citing the earnings potential of its store expansion pipeline.
- Zip Co rose 2.7% to $2.26 after reaching a settlement with Firstmac over a trademark dispute, securing the right to continue using the Zip brand in Australia.
- Australian Agricultural Company gained 1.2% to $1.31 after posting record operating profit of $71.6 million for the fiscal year, up 23%.
- Virgin Australia jumped 9.3% to $2.46 despite announcing it would suspend several routes, including Brisbane-Apia and services to Uluru.
- SkinKandy rose 6.8% to $2.34 on its ASX debut after listing at $2.20.
Wall Street closes higher
US markets finished higher, with the Dow Jones Industrial Average closing at a record 50,285.66, up 276 points, or 0.6%.
The S&P 500 added 0.2% to 7446, while the Nasdaq edged 0.1% higher to 26,293.
Investor sentiment improved as traders responded to reports Washington was in the final stages of talks with Tehran, easing fears of prolonged disruption to global energy flows.
IBM surged 12.4% after securing a US$1 billion funding package from the Trump administration to support development of a quantum computing chip foundry.
Nvidia fell 1.8% despite reporting quarterly revenue and earnings ahead of expectations, as investors appeared underwhelmed by guidance after a strong run in AI-linked stocks.
Europe mixed as investors watch Iran headlines
European markets were volatile as investors reacted to conflicting updates on Iran and US peace negotiations.
The pan-European Stoxx 600 finished marginally higher, while London’s FTSE 100 added 11 points to close at 10,443.
Eutelsat surged 22% amid investor interest in satellite stocks ahead of SpaceX’s anticipated IPO, while BT Group fell 4.9% after reporting a 4% decline in adjusted revenue.
EasyJet gained 0.9% despite reporting a wider first-half pre-tax loss and warning that Middle East tensions had delayed bookings and increased costs.
Currencies and commodities
- Bitcoin held above US$77,000 as institutional demand for digital assets remained firm.
- Spot gold was little changed at US$4,543.85 an ounce.
- Silver gained 1.25% to US$76.76.
- Brent crude fell 5.6% to US$105.02 a barrel.
- Iron ore declined 3.3% to US$105.79 a tonne.