ASX opens flat as Life360 rallies on positive FY guidance
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More news: Australian shares opened marginally higher, with tech and mining stocks lifting the benchmark up.
The benchmark ASX 200 index was up 3.5 points, or 0.04%, to 8,852 at 10:31am AEDT. Five of the 11 sectorial indices opened in the green.
Tech sector (+2.29%) led early gains, lifted by WiseTech Global (+0.60%), Xero (+1.27%), Technology One (+0.34%) and Life360 (+29.82%).
Life360 was the top performer in morning trade across the ASX 200 after lifting its full-year guidance as it approached 100 million monthly active users.
However, Capstone Copper (-3.49%) was the worst performer at the open after it sought judicial support over Mantoverde mine strikes.
Real Estate (-1.15%) was the worst performing sector, with the fall led by Goodman Group (-2.31%), Scentre Group (-0.84%), Vicinity Centres (-0.99%) and Charter Hall Group (-1.09%).
The Australian Bureau of Statistics is set to release employee earnings and hours data for May 2025 at 11:30am AEDT.
Australian shares set to open lower despite positive lead from Wall Street
The news: Australian shares are set to open lower despite S&P 500 posting its biggest one-day percentage gain in two months on Thursday, as investor sentiment improved after US President Donald Trump backed away from military threats on Greenland and said a framework for a deal to resolve the issue had been reached.
Positive momentum was also seen in the US economy after consumer spending rose solidly in November and October, keeping growth on track for a third consecutive strong quarter, while weekly unemployment claims increased by less than expected last week.
The numbers: Updated at 7:48am AEDT:
- ASX futures: down 11 points, or 0.12% to 8,843.
- Wall Street: Dow Jones up 0.52%, S&P 500 up 0.47% and the Nasdaq up 0.69%.
- Europe: CAC 40 up 0.99%, DAX up 1.20% and FTSE 100 up 0.12%.
- Spot gold: up 1.88% to USD4,921 per ounce.
- Oil prices: Brent down 1.80% to USD64.07/bbl and US WTI down 2.08% to USD59.35/bbl.
- AUD: up 1.12% at 68.37 US cents.
- Bitcoin: up 0.01% to USD89,395.
The context: S&P 500, Dow Jones and Nasdaq climbed on Thursday, moving back toward record highs on buying tied to Trump's rescinding tariff threats against European allies and data highlighting the resilience of the US economy.
Russell 2000 index gained 1.2% to a record high on Thursday, signalling increased risk appetite and a rotation into small-caps, while the CBOE Volatility Index slid to 15.45 points, moving further away from the two-month peak touched on Tuesday.
Elsewhere, the US Commerce Department's Bureau of Economic Analysis reported the US economy grew at a 4.4% annualised rate in the third quarter, driven by strong consumer spending and a narrowing trade deficit as sweeping tariffs curb imports. Meanwhile, the US Labor Department showed initial unemployment claims rose to a seasonally adjusted 200,000 for the week ended 17 January.
Economists said robust consumer spending and a stable labour market have reduced the likelihood of a Federal Reserve rate cut at the next meeting, according to Reuters.
Investors are now turning their focus to 'magnificent seven' stocks, which are set to report earnings next week.
On the data front, S&P Global is scheduled to release Australia’s manufacturing PMI for January at 9:00 am AEDT, followed by other countries’ PMI readings throughout the day.
The Australian Bureau of Statistics will release employee earnings and hours data for May 2025 at 11:30am AEDT.
The source: Reuters
