AUS
NZ
UK
CA
USA
IND
Highlights
- ASX 200 futures signal positive open amid US gains
- Miners rally strongly; materials sector lifts the index
- Rate cut speculation builds ahead of RBA decision
The Australian share market is poised to open higher today, supported by a positive lead from Wall Street and renewed investor appetite in the mining sector. As of 8:30 am AEST, ASX 200 futures were up 27 points (+0.31%), suggesting a stronger start for the benchmark index.
On Thursday, the S&P/ASX 200 Index edged slightly lower, closing at 8,595 with a modest dip of 1 point (-0.02%) after reaching an intraday high of 8,623.6. The late-session weakness was mitigated by gains in the Materials sector, which jumped 3.02% thanks to rising iron ore prices—up 2.5% to US$95.55 per tonne. This momentum helped buffer broader losses triggered by declines in the financial and consumer discretionary sectors.
Notably, stocks such as Mineral Resources (ASX:MIN) surged 7.76%, BHP Group (ASX:BHP) climbed 5.56%, Rio Tinto (ASX:RIO) gained 1.80%, and Fortescue Metals Group (ASX:FMG) advanced 1.82%. These miners rallied on the back of supportive signals from Chinese authorities aiming to reduce low-price competition across key industrial sectors. As all these companies are part of the ASX 200, their gains played a significant role in stabilising the index.
Meanwhile, Pro Medicus (ASX:PME) spiked 7.78% to A$307.39 after announcing US$190 million in new US contracts, including a major 10-year agreement with a Colorado-based healthcare provider.
In contrast, financial and consumer-related stocks faced headwinds. Commonwealth Bank of Australia (ASX:CBA) dropped 2.17% to A$179.68, retreating further from last week's record high. Retailers like JB Hi-Fi (ASX:JBH), Harvey Norman (ASX:HVN), and Myer Holdings (ASX:MYR) also posted losses following underwhelming retail sales data. Despite this, market sentiment remains anchored by expectations of a potential 25 basis point interest rate reduction by the Reserve Bank of Australia on July 8, with an 86% probability priced in by futures markets.
Globally, Wall Street ended the week on a high as better-than-expected employment data tempered expectations for aggressive rate cuts. The US economy added 147,000 jobs in June, and the unemployment rate eased to 4.1%. Bond yields rose, trimming the likelihood of a September rate cut from 100% to 70%.
In Europe, major indices also gained amid renewed hopes for a trade agreement between the EU and US. Meanwhile, commodity and currency markets reflected mixed trends. Iron ore continued its ascent, while oil and precious metals eased slightly, reflecting a recalibration in rate expectations.
With strong performances from resource-heavy sectors and anticipation of monetary policy shifts, investors will be closely watching the ASX 200’s movements in the coming sessions.
