Kalkine: ASX 200 Opens Higher as Energy Stocks Drive Gains and Gold Miners Lag

Highlights

• Energy sector leads early ASX rally with strong performance from key oil producers

• Gold mining stocks show weakness as several companies decline in early trade

• Broader market sentiment lifted by overnight gains on Wall Street

Australian equities opened on a positive note with the ASX 200 climbing in early trade, supported by broad-based sectoral gains. The rally came after US equities posted modest improvements overnight, prompting strength in the local energy, consumer discretionary, and real estate segments. Nine of the eleven sectoral indices were in positive territory, with energy taking the lead following gains in crude oil prices and steady global demand signals.

Woodside Energy Group Ltd (ASX:WDS) and Santos Ltd (ASX:STO) registered notable upticks, underpinning strong momentum in the energy sector. The improved sentiment toward oil-linked stocks contributed to the broader upward movement of the index during morning trade.

Education and Tech Stocks Show Recovery

IDP Education Ltd (ASX:IEL), which had experienced a sharp drop in a recent session, showed a significant rebound, topping the list of early gainers. The stock's upward move marked a turnaround in sentiment following earlier concerns linked to its business outlook. Market observers noted strong buying interest during the early hours of trade.

NextDC Ltd (ASX:NXT), a key player in data centre infrastructure, also advanced following an announcement regarding higher contracted utilisation across its facilities. The uptick in operational metrics supported early gains in the information technology sector, contributing to the morning's upward momentum.

Gold Miners Retreat on Weak Early Trade

In contrast to broader market strength, the materials sector faced headwinds as gold miners retreated. Several stocks in this segment were among the weakest performers on the ASX 200, reflecting early pressure on gold-linked equities.

West African Resources Ltd (ASX:WAF), Genesis Minerals Ltd (ASX:GMD), and Regis Resources Ltd (ASX:RRL) were among the top decliners in the initial session. The softness in spot gold prices and global sentiment toward precious metals weighed on mining stocks. The pullback across this segment offset some of the broader market gains but remained isolated to gold-focused names.

Mixed International Market Cues and Trade Developments

Wall Street closed with a mixed tone overnight, with marginal gains recorded on key indices including the Dow Jones, S&P 500, and Nasdaq. The US market responded to corporate headlines and policy remarks, including comments by President Donald Trump regarding key technology executives.

In Europe, leading indices such as the CAC 40, DAX, and FTSE 100 saw modest declines. The ongoing trade discussions between the United States and China remain a central focus for market participants globally. Officials from both nations are expected to continue negotiations, particularly around technology and critical mineral supply chains.

Macroeconomic Data and Events on the Radar

The domestic market awaits key data releases scheduled for later in the day. Westpac is set to publish its Consumer Sentiment indicators for the month of June, offering insight into household confidence following recent monetary policy decisions. National Australia Bank is also expected to release its Business Confidence Survey for May, providing a read on corporate sentiment amid global uncertainty.

Additionally, Prime Minister Anthony Albanese is scheduled to address the National Press Club of Australia. The speech is anticipated to cover economic priorities and may include commentary relevant to current market conditions.

The market remains sensitive to global cues, sector-specific developments, and macroeconomic indicators as traders digest the mixed international landscape.