ASX rebounds at the open as Iran strike delay eases tensions
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More news: Australian shares opened higher, rebounding from a 10-month low in the prior session after Donald Trump signalled a near-term resolution and postponed a planned attack on Iranian power plants.
The benchmark ASX 200 was up by 76.6 points, or 0.92%, to 8,442 at 10:50am AEDT. Seven of the 11 sectoral indices opened in the green.
Mining (+3.68%) rebounded from multi-session losses and was the strongest performing sector, supported by gains in Sandfire Resources (+8.83%), Genesis Minerals (+8.22%), Capstone Copper (+7.81%) and Greatland Resources (+6.35%).
Elsewhere, energy (-1.80%) retreated after consecutive session highs, weighed down by Yancoal (-5.44%), Woodside (-3.59%), Karoon Energy (-3.15%) and Santos (-2.85%) after Brent crude dropped below USD100 overnight.
Aside from energy companies, IDP education (-1.50%), Centuria Capital (-1.25%), Arena REIT (-1.21%) and Cochlear (-1.16%) were among the worst performing stocks.
On the agenda today, Ursula von der Leyen and Anthony Albanese are expected to sign a free trade agreement this morning between Australia and the EU.
Australian shares to open higher after Trump delays Iran strikes
The news: Australian shares are set to open higher after Wall Street closed more than 1% higher on Monday, as oil prices fell after Donald Trump ordered a delay to planned strikes on Iranian power plants following "productive conversations” with Tehran.
The numbers: Updated at 7:52am AEDT:
- ASX futures: up 166 points to 8,544.
- Wall Street: Dow Jones up 1.38%, S&P 500 up 1.15% and the Nasdaq up 1.38%.
- Europe: CAC 40 up 0.79%, DAX up 1.22% and FTSE 100 down 0.24%.
- Spot gold: down 1.82% to USD4,407 per ounce.
- Oil prices: Brent down 10.65% to USD100.22/bbl and US WTI down 9.47% to USD88.91/bbl.
- AUD: down 0.14% at 70.10 US cents.
- Bitcoin: up 4.51% to USD70,905.
The context: All three major US indices closed higher on Monday, with the Dow Jones gaining 631 points. All 11 S&P sectors finished in positive territory, led by consumer and travel stocks. United Airlines, American Airlines and Norwegian Cruise Line surged 4.46%, 3.64% and 6.20% respectively.
Brent crude fell sharply to around USD100 a barrel, reflecting optimism that energy flows through the Persian Gulf could stabilise.
The move followed comments from Donald Trump that he had postponed planned strikes on Iranian energy infrastructure after what he described as productive talks aimed at de-escalating hostilities. However, Iran’s parliamentary speaker said on social media that no such talks had taken place, contradicting Trump’s claim.
The shift in tone marked a stark difference from over the weekend, when Trump had set a deadline for Tehran to reopen the Strait of Hormuz by Monday evening, warning of potential strikes on Iran’s power plants if the shipping route remained closed.
Gold pared earlier losses following Trump’s extended deadline, but remained 3.6% lower on the day. The precious metal ended last week with steep declines amid concerns the conflict would keep interest rates elevated.
Locally, European Commission President Ursula von der Leyen is scheduled to meet Anthony Albanese in Canberra today to announce a free trade agreement between Australia and the European Union.
