AUS
NZ
UK
CA
USA
IND
Highlights
- ASX200 futures point to a strong opening following Wall Street rally
- Oil prices plunge over 7% amid eased geopolitical risks
- Several small-cap miners report positive project developments
Australian shares are expected to open on a positive note, with ASX200 futures up by 62 points or 0.73% as of 8:30 am AEST. This upbeat momentum follows a strong finish on Wall Street, where investor sentiment turned optimistic on hopes of a near-term interest rate cut from the US Federal Reserve. Major indices in the US surged after geopolitical tensions subsided, with limited retaliation from Iran after its missile strike on a US base in Qatar.
The rally saw the Dow Jones advance by 375 points (+0.9%), the S&P 500 climb 1%, and the Nasdaq jump 184 points (+0.9%). Notably, Tesla gained 8.2% after launching its new robotaxi service, while Super Micro Computer declined 9.8% after announcing a US$2 billion convertible bond issue. Market optimism was further lifted after Federal Reserve Governor Michelle Bowman indicated a rate cut could come as early as July if inflation trends continue downward, signalling that economic risks may now be more focused on the labour market than on price growth.
Meanwhile, European markets showed more restraint. The FTSEurofirst 300 edged down 0.3%, and the UK’s FTSE 100 slipped 0.2% as Middle East uncertainty lingered. German plans to ramp up defence spending to 3.5% of GDP by 2029 failed to spark investor enthusiasm.
In the commodities space, oil prices plunged sharply, with Brent crude falling over 7% to US$71.48 a barrel, marking its steepest one-day drop since August 2022. West Texas Intermediate (WTI) crude settled at US$68.51. The sharp pullback was attributed to diminished concerns over supply disruptions through the Strait of Hormuz.
The Australian dollar appreciated to US64.55 cents, up from US63.74, while metals traded mixed. Gold climbed 0.3% to US$3,395 per ounce, copper advanced 0.4%, and aluminium surged 2.3%. Iron ore remained stable near US$94.75 a tonne.
On the small-cap front, multiple ASX-listed companies provided key project updates:
- Sovereign Metals Ltd (ASX:SVM) reported encouraging results from its Conservation Farming Program at the Kasiya Rutile-Graphite Project in Malawi, reinforcing its sustainability commitment.
- Nexus Minerals Ltd (ASX:NXM) completed a 5,172-metre drilling program at its Wallbrook Gold Project near Kalgoorlie, aiming to define shallow gold mineralisation.
- Firebird Metals Ltd (ASX:FRB) appointed industry veteran Ken Hoffman as Special Advisor to its Board, strengthening its strategy in battery materials.
- European Lithium Ltd (ASX:EUR) announced that Critical Metals Corp. (NASDAQ:CRML) secured a US$2 million drilling contract for the Tanbreez Project in Greenland.
- Constellation Resources Ltd (ASX:CR1) unveiled promising results from maiden Ultrafine+™ soil sampling and drilling at its Ularring Gold-Copper Project in WA, identifying a new soil anomaly named “Chatham”.
These updates bring fresh momentum to the broader market narrative, especially for investors tracking developments across the ASX200 and the small-cap space.
