AUS
NZ
UK
CA
USA
FRA
GER
ESP
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UAE
Highlights
- ASX 200 futures point to a stronger open following Wall Street gains.
- US inflation and economic data raise hopes for interest rate cuts.
- Key ASX300 names and small caps make strategic updates.
The Australian share market looks poised for a positive start to Friday trading, with ASX 200 futures rising by 80 points or 0.96% as of 8:30 am AEST. This uplift is largely influenced by Wall Street's upbeat close, driven by softer US inflation data and easing bond yields, which have raised expectations of multiple rate cuts by the Federal Reserve later this year.
In the US, the S&P 500 climbed 0.4%, recovering from early losses, while the tech-heavy Nasdaq ended a six-day winning streak but still recorded a weekly gain exceeding 6%. The UK’s FTSE 100 also outperformed global peers, gaining 0.6% following stronger-than-anticipated GDP figures.
Key US economic indicators added to market confidence. April’s Producer Price Index (PPI) unexpectedly dropped by 0.5%, marking its steepest fall in five years, while the core PPI also slipped 0.4%. Meanwhile, disappointing retail growth, a decline in factory output, and slumping housing sentiment collectively reinforced views that the US economy is cooling. As a result, traders are now anticipating at least two interest rate reductions before the end of 2025.
Bond markets reacted positively, with the US 10-year Treasury yield falling by 9 basis points to 4.44%, and the 2-year yield also dipping to 3.97%.
Locally, the ASX 200 closed Thursday up 0.22% at 8,297, supported by strong performances from Commonwealth Bank of Australia (ASX:CBA), Wesfarmers (ASX:WES), and Xero (ASX:XRO). Financials rose 1.1%, and consumer discretionary stocks gained 1%, contributing to the broader lift.
In company-specific news, Appen (ASX:APX) provided a revenue forecast for FY2025 between $235 million and $260 million, slightly below the market consensus. Fletcher Building (ASX:FBU) revealed plans to dissolve its standalone Australian division as part of a strategic restructuring.
Rio Tinto (ASX:RIO) unveiled a $1.2 billion investment to modernise its hydroelectric facility in Quebec, marking the company's largest such investment since the 1950s.
Among small caps, Highfield Resources (ASX:HFR) announced new leadership appointments at its Spanish subsidiary Geoalcali, as it progresses with the Muga potash project. Altech Batteries (ASX:ATC) highlighted the long-term viability of its CERENERGY® battery technology after successfully activating a battery stored for 28 years.
Commodities presented a mixed picture: Brent crude slipped 2.4% to US$64.53 amid speculation around a US-Iran nuclear deal, while gold surged 1.7% to US$3,240 per ounce, lifted by safe-haven demand and a weaker US dollar.
As investors continue scanning for opportunities, ASX dividend stocks remain in focus for income-seeking strategies.
Meanwhile, developments in the broader S&P/ASX300 will be closely watched, particularly as more earnings announcements and economic data unfold.
On the agenda today are annual general meetings for Appen (ASX:APX) and Gold Road Resources (ASX:GOR), while Dicker Data (ASX:DDR) goes ex-dividend. Additionally, US data on housing starts, trade prices, and consumer sentiment may further shape expectations for the Fed’s next move.
