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Highlights
- ASX200 futures point to a positive open.
- US markets surge on consumer confidence boost.
- Key inflation data to shape local market outlook.
The S&P/ASX200 is poised for a stronger open on Wednesday, with futures up 51 points or 0.60% by 8:30 am AEST. This comes as global markets rallied overnight, lifted by encouraging developments on US-EU trade and a surprising boost in American consumer confidence. Investors showed optimism after the US government delayed the implementation of tariffs on European Union imports and consumer sentiment soared unexpectedly.
A sharp drop in bond yields globally added to the upbeat tone. Japan’s plans to reduce debt issuance helped ease concerns over fiscal tightening, supporting risk-on sentiment. Back home, attention now shifts to Australia's latest monthly Consumer Price Index (CPI), with expectations of a dip to 2.3%. Such a result could reinforce the Reserve Bank of Australia’s cautious approach on interest rate changes and offer relief to rate-sensitive sectors, including ASX dividend stocks.
On Tuesday, the S&P/ASX200 index closed 0.6% higher at 8,408 points, supported by strong offshore leads and earnings strength from notable firms. Among the gainers were (ASX:FPH), which delivered a strong earnings report, and (ASX:WEB), which posted improved travel demand figures.
Meanwhile, (ASX:MIN) revised its iron ore volume forecast for FY25 due to logistical hurdles but maintained its target of hitting 35 million tonnes annually by Q1 2026. In property, (ASX:GMG) reaffirmed FY25 guidance, targeting 9% growth in earnings per share and a 30 cents per share dividend, backed by solid third-quarter property income growth.
Activity in the small-cap space included a notable announcement from (ASX:DYM), which has kicked off phase two of drilling at its Cognac West prospect. Also making news, (ASX:LIT) entered a partnership with NoviqTech to digitise environmental benefits through its battery recycling operations. In the critical minerals sector, (ASX:EVG) highlighted the benefits of improved infrastructure in Madagascar, aiding its graphite project under a broader EU-aligned strategy.
Globally, Wall Street posted significant gains, with the S&P 500 climbing 2.05% to 5,922 points. The surge was led by consumer discretionary and tech stocks, including (NASDAQ:NVDA), which rose 3.2% ahead of its earnings report, and (NASDAQ:TSLA), which jumped 6.9% after positive industry commentary.
As market participants await today’s local CPI data, additional focus will fall on construction output and international developments, including the upcoming Nvidia earnings report and the US Federal Reserve's meeting minutes. The ongoing rally in S&P/ASX200 stocks may find further support should inflation trends confirm a moderating pace, aligning with investor hopes for stable monetary policy.
