The Australian sharemarket is expected to open slightly lower on Friday, with futures pointing to a decline of 12 points, or 0.1%, after the S&P/ASX 200 extended its record-breaking run in the previous session.
Investors will be watching a series of company results locally, while attention offshore will turn to the US non-farm payrolls and unemployment data for July.
ASX closes at record high for second straight session
The Australian sharemarket closed at an all-time high for a second consecutive session on Thursday as gold miners advanced and oil prices remained below recent peaks amid hopes of progress towards reopening the Strait of Hormuz.
The S&P/ASX 200 gained 43.8 points, or 0.5%, to close at 9,271.60, surpassing Wednesday’s previous record.
The benchmark rose as high as 9,296.7 during the first hour of trade before gains moderated, with the materials sector providing much of the support.
Gold miners were among the strongest performers after bullion briefly moved above US$4,300 an ounce, extending its largest gain in 6 months.
Northern Star Resources Ltd (ASX:NST) rose 3.3%, Evolution Mining Ltd (ASX:EVN) climbed 3.8% and Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, XETRA:NMM) gained 3.7%.
BHP Group Ltd (LSE:BHP, ASX:BHP) added 0.5% and Fortescue Ltd (ASX:FMG) advanced 1.4%, while Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) finished unchanged.
Trade surplus supported by commodity exports
The strength in commodity stocks coincided with Australian Bureau of Statistics data showing the country unexpectedly recorded a $1.9 billion trade surplus in June.
Exports increased to almost $50 billion, their highest level since early 2023 and their strongest monthly rise in 4 years.
Gold exports accounted for more than $7 billion, taking shipments during the first half of the year above a record $40 billion.
Financial stocks also moved higher, with Commonwealth Bank of Australia (ASX:CBA) up 0.9%, National Australia Bank Ltd gaining 0.4% and ANZ Group Holdings Ltd adding 0.3%. Westpac Banking Corporation closed flat.
Technology stocks were mixed following gains earlier in the week.
WiseTech Global Ltd fell 1.5% and Life360 Inc dropped 3.2%, while Xero Ltd and Technology One Ltd gained 0.4% and 0.3%, respectively. NEXTDC (ASX:NXT) Ltd added 0.8%.
Energy stocks were also mixed, with Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) down 0.2% and Santos Ltd (ASX:STO) rising 0.5%.
Hormuz negotiations remain in focus
Market sentiment continued to be influenced by developments surrounding the Strait of Hormuz, a key global energy shipping route.
Iran said it had reached an agreement with Oman covering a shipping route through the strait, raising hopes that some energy flows could resume.
Iranian Deputy Foreign Minister Kazem Gharibabadi said the arrangement could remain in place for between two and four months, although it did not represent a full reopening of the waterway.
US President Donald Trump said negotiations with Iran were continuing and indicated he would prefer a diplomatic agreement to a military resolution.
Oil prices initially eased on the reports before rebounding in offshore trade as investors considered the continuing risks to shipping through the region.
News Corp (NASDAQ:NWSA) rallies after stronger earnings
News Corp’s Australian-listed shares jumped 3.4% after the media group reported a 31% increase in annual earnings to US$423 million, or about A$600 million.
Fourth-quarter revenue rose 11% from a year earlier to US$2.34 billion, exceeding Wall Street expectations.
The Dow Jones information services business remained the largest contributor, while the real estate and book publishing divisions also delivered growth.
Underlying earnings from the news media division declined 9% as print advertising weakened, broadcasting costs increased during the FIFA World Cup and the company launched the California Post masthead.
News Corp also used its annual results to criticise artificial intelligence companies that it alleges have used publisher content without permission.
Wall Street retreats from record levels
US sharemarkets finished lower in choppy trade as investors took a breather following a record-breaking rally earlier in the week and awaited further signs of a possible Middle East peace agreement.
The Dow Jones Industrial Average fell 0.9%, the S&P 500 declined 0.2% and the Nasdaq Composite eased 0.1%.
Semiconductor stocks recovered from earlier losses, with Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) and Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) gaining about 2% each. The Philadelphia Semiconductor Index rose 0.3%.
However, earnings-related falls weighed on several technology stocks.
Western Digital Corporation tumbled almost 13% and Sandisk Corporation fell more than 7% following quarterly results.
AppLovin Corporation dropped 20% after quarterly revenue missed expectations, while Datadog Inc (NASDAQ:DDOG) declined 19% after forecasting slower third-quarter revenue growth.
Honeywell Aerospace sank 23% after supply-chain issues prompted the company to cut its annual sales target and issue profit guidance below expectations.
US Treasury yields rose ahead of the July employment report.
The 10-year Treasury yield increased 6 basis points to 4.68%, while the 2-year yield climbed 7 basis points to 4.25%.
European markets reach another record
Broader European sharemarkets closed at a record high for a third consecutive session as investors assessed the prospects of a US-Iran agreement and reviewed a largely positive round of corporate earnings.
The FTSEurofirst 300 gained 0.1%, while the UK’s FTSE 100 slipped 0.2%.
Deutsche Telekom AG rose 6.3% after expanding its 2026 share buyback program by €3 billion to as much as €5 billion.
The European media sector gained 3%, led by a 28.6% surge in WPP PLC (LSE:WPP), its largest daily rise since 1992, after the advertising group exceeded organic growth expectations.
Rheinmetall AG fell 3.5% after lowering its 2026 sales outlook, contributing to a 0.8% decline in the broader aerospace and defence sector.
Siemens AG closed 4.5% lower after results from its digital industries division missed expectations, despite the company reporting record quarterly industrial profit and upgrading its full-year guidance.
Currencies weaken against US dollar
Major currencies fell against the US dollar.
- The euro declined 0.3% to US$1.1522.
- The Japanese yen weakened 0.5% to ¥158.44 per US dollar.
- The Australian dollar slipped 0.4% to US70.31 cents.
Oil rebounds while gold and base metals ease
Global oil prices rose as investors considered reports that an Iranian parliamentary committee was reviewing legislation that could ban US and Israeli vessels from the Strait of Hormuz.
The proposed measure could impose fines worth as much as 20% of the value of a vessel’s cargo.
- Brent crude futures settled 3.8% higher at US$82.49 a barrel.
Base metal prices eased as the stronger US dollar weighed on demand.
- Copper futures slipped 0.2%, while aluminium futures edged 0.03% lower.
- Gold futures declined 0.1% to settle at US$4,300 an ounce as higher oil prices revived inflation concerns and expectations of further interest rate increases.
- Iron ore futures extended their gains following reports that Beijing could introduce further measures to support China’s property market.
Futures settled 1.5% higher at US$95.28 a tonne, supported by signs of a gradual recovery in domestic steel demand.
What to watch today
Australian investors will monitor earnings results from ResMed Inc, Charter Hall Retail REIT, James Hardie Industries PLC, AVITA Medical Inc and Nick Scali Ltd.
In the US, the main focus will be the July non-farm payrolls report and unemployment rate, which could influence expectations for the Federal Reserve’s next interest rate decision.