ASX opens higher on easing Middle East tensions
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More news: Australian shares climbed at the open, and en route for a second consecutive positive start, as investors remain on the lookout for updates on the Middle East conflict.
The benchmark ASX 200 was up by 102.3 points, or 1.22%, to 8,481 at 10:45am AEDT. Nine of the 11 sectorial indices opened in the green.
Mining (+3.14%) rallied and was the strongest performing sector for a second consecutive session, supported by gains in Genesis Minerals (+9%), Emerald Resources (+8.91%), Bellevue Gold (+7.90%) and Capricorn Metals (+6.98%), as gold prices rose 2.94% to USD4,539 ($6,489).
Elsewhere, energy (-2.25%) was the weakest performing sector at the open, weighed down by Woodside (-1.53%), Santos (-1.59%), New Hope (-2.06%) and Amplitude Energy (-38.39%).
Endeavour Group (-3.05%), Computershare (-3.03%), Atlas Arteria (-2.65%) followed suit as the worst performing stocks outside of the energy sector.
On the data front, the Australian Bureau of Statistics is due to release the consumer price index for February at 11:30am AEDT.
Australian shares to open higher after Wall St edged lower on conflict jitters
The news: Australian shares are set to open higher as Wall Street closed lower on Tuesday, as markets weighed concerns over rising oil prices against signs of a resolution in the Middle East conflict. Trump said talks were underway, even as reports indicated additional American troops were being deployed to the Middle East.
The numbers: Updated at 8:00am AEDT:
- ASX futures: up 12 points to 8,499.
- Wall Street: Dow Jones down 0.18%, S&P 500 down 0.37% and the Nasdaq down 0.84%.
- Europe: CAC 40 up 0.23%, DAX down 0.07% and FTSE 100 up 0.72%.
- Spot gold: up 1.32% to USD4,466 per ounce.
- Oil prices: Brent up 0.17% to USD100.10/bbl and US WTI up 0.41% to USD88.48/bbl.
- AUD: down 0.21% at 69.94 US cents.
- Bitcoin: down 1.05% to USD70,170.
The context: All three major indices closed lower on Tuesday, though pared losses after Trump said the United States was in talks with “the right people” in Iran to reach an agreement to end hostilities, adding that Iran had agreed it would not pursue nuclear weapons. However, WSJ reported that the Pentagon is planning to deploy 3,000 American troops from the 82nd Airborne Division to the Middle East, with a written order expected in the coming hours.
Meanwhile, Iran intensified its assault in the Middle East, launching strikes on Israel, Kuwait, Bahrain and Saudi Arabia as Iranian officials warned that diplomatic efforts to secure a ceasefire could be a “trap”.
The escalation follows Trump’s decision on Monday to postpone strikes on Iranian power plants by five days after what he described as “productive” talks with Tehran, a claim denied by Iran’s Foreign Ministry.
Elsewhere, elevated oil prices have revived inflation concerns and complicated the interest rate outlook for central banks. The US Federal Reserve struck a hawkish tone last week, projecting only one cut in 2026. Markets are no longer pricing in any rate cuts this year, compared with expectations for two before the Middle East conflict escalated.
Locally, the Australian Bureau of Statistics is scheduled to release the consumer price index for February at 11:30am AEDT.
