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Highlights
- ASX 200 eyes a rebound following Wall Street’s lift
- Gold hits one-month high amid rising safe-haven demand
- Rare earth and tech-linked small caps advance on project updates
The Australian share market looks set to rebound, with ASX 200 futures pointing to a 46-point lift (+0.53%) as of 8:30 am AEST. This follows modest gains on Wall Street, spurred by cooling US inflation data and strong demand for long-term Treasury bonds, which helped ease investor concerns and buoy risk appetite.
A softer-than-expected US Producer Price Index (PPI) reading (+0.1% month-on-month) reinforced expectations of potential rate cuts by the Federal Reserve later in the year. The positive sentiment was further supported by a well-received 30-year Treasury auction, which lowered yields and boosted valuations across equities.
Tech and gold-related sectors appear set to drive today's action on the ASX. Overnight, Oracle shares soared 13% after projecting a 70% increase in cloud infrastructure revenue, strengthening optimism in the AI sector. This momentum extended to names like Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Broadcom (NASDAQ:AVGO), which all closed higher.
Locally, gold miners may extend gains after bullion prices surged to a one-month high of US$3,386/oz, edging closer to the US$3,400 mark. The metal’s rally comes amid geopolitical uncertainty and the tempered US inflation outlook, driving safe-haven interest.
Meanwhile, the ASX 200 had dipped 27 points (-0.31%) on Thursday as global volatility and rising oil prices pressured risk sentiment. Resource-linked sectors, particularly lithium, iron ore, and base metals, saw weakness, while gold and tech stocks outperformed.
Small caps also showed strength, with the ASX Small Ordinaries rising 0.55% to 3,268.70. Among notable movers:
- Ionic Rare Earths (ASX:IXR): Partner Viridion secured Brazilian government backing to scale up rare earth refining and recycling efforts, aligning with efforts to diversify supply chains beyond China.
- Resolution Minerals (ASX:RML): Announced progress toward a US OTCQB listing to engage more North American investors and elevate visibility for its Idaho-based critical minerals project.
- Terra Metals (ASX:TM1): Raised $4 million through a strategic placement, aimed at advancing drilling activities at its Dante copper-vanadium project in Western Australia.
On the commodity front, copper edged up 0.6%, WTI oil gained just over 1%, and iron ore slipped slightly to US$95.46/tonne. Nickel and zinc also declined modestly, while lithium carbonate spot prices in China remained steady.
The Australian dollar strengthened to US65.33¢ on the back of a weaker greenback. In the digital assets space, Bitcoin fell 2.7% to around US$106,000, and Ethereum lost over 4%.
Investors will be watching for local data on overseas arrivals and departures, while US consumer sentiment figures are also on the radar. Domestically, corporate developments such as Accent Group’s earnings guidance and a block trade in Dalrymple Bay Infrastructure could influence specific stock movements.
