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Highlights
- ASX200 inches closer to record territory.
- Tech and banking stocks boost local sentiment.
- Small caps post strong exploration updates.
Australia's sharemarket opened Wednesday with renewed optimism, supported by Wall Street's positive cues and a steady macroeconomic backdrop. The ASX200 index is positioning for fresh highs, with futures suggesting a 0.27% lift at the open.
On Tuesday, the ASX200 Total Return Index extended its recovery from April’s correction, now up over 17% since its April 7 trough. The rally was led by strong performances in the banking and tech sectors. National Australia Bank (ASX:NAB) rose 1.5%, while retail players like JB Hi-Fi (ASX:JBH) and Wesfarmers (ASX:WES) also gained ground.
Tech stocks were another key driver, as NextDC (ASX:NXT) soared 5.2% following a contract update. Wisetech Global (ASX:WTC) and Xero (ASX:XRO) posted notable gains, continuing the momentum in growth-oriented sectors.
However, the gold sector lagged, with the sub-index dipping 1.7%. Notable declines included Evolution Mining (ASX:EVN) and Newmont Corporation (ASX:NEM), amid softer bullion sentiment.
Investor focus has now shifted to the release of the US Consumer Price Index (CPI) data due Wednesday night. Markets are watching for signs of moderating inflation that could shape the Federal Reserve's rate outlook. A surprise uptick might dampen sentiment, though Wall Street remained firm overnight. The S&P 500 rose 0.55%, Nasdaq advanced 0.63%, and the Dow added 0.25%.
Investor mood was also bolstered by reports of "constructive" US-China trade talks in London. Although details remain limited, optimism persists with a third round of discussions expected.
Mega-cap tech names also supported the rally. Apple Inc. revealed its latest AI-driven features, while Nvidia Corporation partnered with HP Inc. to develop a new supercomputer. Meanwhile, OpenAI’s jump in recurring revenue further affirmed the AI growth narrative.
In the small-cap space, several exploration firms provided updates:
- European Lithium (ASX:EUR) reported a rare earths intercept of 240.9 metres at 0.48% TREO from its Greenland project.
- QMines (ASX:QML) advanced its drilling at Develin Creek, aiming for a copper-gold resource boost.
- Asian Battery Metals (ASX:AZ9) disclosed high-grade copper-nickel assays from its Mongolian discovery.
- Resolution Minerals (ASX:RML) signed a deal to acquire the Horse Heaven project in the US, targeting gold and antimony exploration in 2025.
Gold held steady above US$3,320/oz, while oil dipped. The Australian dollar traded near US$0.6528, and Bitcoin hovered below US$110,000.
Among stocks drawing attention today are NextDC and Metcash (ASX:MTS), with the latter’s full-year guidance slightly exceeding expectations. Meanwhile, uranium and gold stocks could face continued headwinds following overnight ETF declines.
Amid this backdrop, investors continue to explore opportunities in ASX dividend stocks and growth-oriented plays as the market eyes a breakout in the benchmark ASX200.
