AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
Wall Street rally and easing Middle East concerns drive early momentum on ASX
Santos and Collins Foods outperform on corporate updates
Oil and gold prices retreat, impacting related energy and mining stocks
The ASX 200 tracked higher during early trading, mirroring strength in Wall Street indices and responding positively to signs of de-escalation in the Middle East. Broader market sentiment remained supported by expectations around monetary easing and corporate earnings momentum.
Despite a volatile geopolitical backdrop, recent events led to only limited financial market impact, with investors interpreting the latest developments as a reduced threat to global supply chains.
Middle East Developments Ease Market Uncertainty
Geopolitical risk across the Middle East moderated following reports of limited retaliatory action after airstrikes targeting Iranian facilities. Financial markets responded with relief, with energy prices falling back as immediate concerns over supply constraints faded.
A ceasefire declaration attributed to former US President Donald Trump gained traction on social media, adding to sentiment that a broader regional conflict may be avoided. Commodities including oil and gold moved lower amid the easing tensions.
Fed Officials Signal Rate Relief
Investor sentiment was further supported by comments from US Federal Reserve officials, hinting at the possibility of rate cuts in upcoming policy meetings. The outlook for lower interest rates added a bullish undertone across global equity markets, including Australia, as traders reacted to the dovish rhetoric.
With inflation levels stabilising, some central bank members indicated that the current economic environment may warrant easing, which provided further uplift to cyclical sectors and consumer-facing businesses.
Santos and Collins Foods Deliver Noteworthy Results
Santos Ltd (ASX:STO) remained a market standout following the recent confirmation of a takeover proposal led by a consortium involving Abu Dhabi’s Adnoc. The development boosted sentiment across the energy sector, although related names including Woodside Energy (ASX:WDS) and Beach Energy (ASX:BPT) later saw pressure from falling oil prices.
Collins Foods Ltd (ASX:CKF) delivered stronger-than-expected results for the financial year, with its core brands in Australia and Europe posting healthy sales performance. The company also reported early strength in the first weeks of the new fiscal year, which supported upward movement in its share price. The earnings report triggered a notable short squeeze, adding momentum to the rally.
Energy and Mining Weigh on Broader Gains
Despite pockets of strength, broader energy stocks declined as crude prices corrected significantly from recent highs. Declines were seen across oil-exposed stocks including Karoon Energy (ASX:KAR), Beach Energy, and Woodside, aligning with a sharp retreat in Brent and WTI crude benchmarks.
Gold stocks also experienced weakness as easing global tensions and lower safe-haven demand led to softer pricing. The moves added to downward pressure on miners and capped broader index gains during the session.
Metcash and Veris Provide Corporate Updates
Metcash Ltd (ASX:MTS) posted full-year results in line with prior guidance, with its food and liquor segments showing ongoing momentum. The group also reported early signs of improvement in hardware sales heading into the new fiscal year. The board declared a final payout, falling within the upcoming dividends ASX category.
Veris Ltd (ASX:VRS), operating in the infrastructure and spatial data sectors, shared a forecast indicating a return to profitability in the current year. The company continues its buyback program and flagged future dividend possibilities.
