ASX 200 Opens Higher as Trade Sentiment Lifts XAO, XJO, and Small Ords

Highlights:

• ASX 200 futures edged higher in early trade, tracking gains from global equities and a strong US jobs report

• Positive sector moves led by information technology, real estate, and health care, while materials saw subdued gains

• Apollo Minerals Ltd reported shallow high-grade gold results from its Salanie Project in Gabon

The materials sector remained in focus during the early session as the asx 200 tracked overnight gains from global equities. The S&P/ASX 200 Index (XJO) saw movement supported by strength in offshore markets, while the broader All Ordinaries (XAO) and Small Ordinaries (XSO) also reflected positive sentiment. US markets closed higher after key employment data and optimism around trade developments between the United States and China. Australian equities began the session following a week of solid gains across multiple sectors.

Information Technology and Real Estate Lead Local Gains

Several sectors contributed to the uplift across Australian equities, with information technology stocks showing strong upward momentum. Real estate companies also advanced, supported by shifts in rate expectations following inflation data releases. The health care and consumer discretionary segments added to the gains, while industrials posted more moderate improvements. Materials remained subdued as commodity prices experienced mixed movements in global trade.

Banking Sentiment Soft Following Westpac Earnings

The financial sector opened the week with cautious sentiment following results from Westpac Banking Corporation Ltd (ASX:WBC). The bank's financial report for the first half of the fiscal year reflected outcomes that fell short of broader market expectations. This affected early trading in the sector despite the overall market gains.

Election Result Provides Political Stability

Over the weekend, the national election concluded with a decisive result in favour of the Labor Party. The outcome was seen as providing a stable political backdrop and reducing uncertainty in the local market landscape. Policy continuity and clarity on government direction were observed to have a steadying effect on equity sentiment at the start of the week.

Global Markets Rally on US Jobs Data and Trade Progress

US equity indices extended gains in the previous session. The Nasdaq Composite advanced the most, followed by the Dow Jones Industrial Average and the S&P 500. A strong employment report from the United States and signs of easing trade tensions contributed to the rise. Market participants are now awaiting upcoming discussions on trade as well as the US Federal Reserve’s policy announcement, with interest rates expected to remain steady.

Currency and Commodity Movements Mixed

Currency markets saw varying results against the US dollar. The Australian dollar appreciated early before easing slightly by the US close. The euro weakened, while the Japanese yen moved higher. In commodities, crude oil prices dropped, marking the largest weekly losses in recent months. Brent and West Texas Intermediate contracts closed lower as markets monitored developments ahead of the OPEC+ meeting.

Base Metals Edge Higher, Gold and Iron Ore Retreat

Base metals ended higher in the latest session, with copper and aluminium both lifting. However, weekly performances for both remained lower due to earlier losses. Gold futures recovered slightly but continued a multi-week downturn. Iron ore prices declined as futures contracts softened on demand concerns.

Small Cap Segment Shows Weekly Improvement

The S&P/ASX Small Ordinaries Index (XSO) ended the previous week higher, with gains driven by a series of updates across the small-cap sector. The latest quarterly results and corporate announcements maintained momentum in the space.

Apollo Minerals Confirms Shallow High-Grade Gold Intercepts

Apollo Minerals Ltd (ASX:AON) reported new assay outcomes from its Salanie Gold Project located in Gabon. The drill results highlighted shallow intercepts containing high-grade gold mineralisation, building on outcomes from its earlier Phase 1 campaign. The findings confirmed mineralised zones at the A1 prospect and marked continued exploration progress at the site.

Race Oncology Enhances Clinical Leadership

Race Oncology Ltd (ASX:RAC) announced senior appointments to strengthen its executive structure. Dr Jose Iglesias has assumed the role of Chief Medical Officer, replacing Dr Michelle Rashford. Additionally, Dr Simon Fisher has joined as Vice President of Clinical, bringing added experience in pharmaceutical and clinical operations.

Astral Resources Completes Maximus Resources Acquisition

Astral Resources NL (ASX:AAR) finalised its acquisition of Maximus Resources Ltd (ASX:MXR). With a majority stake already secured, Astral concluded the compulsory acquisition process to take full ownership. The transaction marks a key step in its ongoing strategy in the resources sector.