ASX opens higher after BHP rallies on HY profit jump
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More news: Australian shares opened higher supported by gains in the mining sector.
The benchmark ASX 200 was up by 33 points, or 0.37%, to 8,970 at 10:39am AEDT. Three of the 11 sectoral indices opened in the green.
Mining (+2.46%) was the strongest performing sector, led by a rally in BHP (+6.53%) after reporting a 28% increase in first-half statutory net profit.
Judo Bank (+7.02%) also gained after reporting a 46% jump in first-half statutory profit, while Deterra Royalties (+2.89%) rose after reporting a 36% increase in net profit after tax.
Meanwhile, Tech (-2.07%) was the worst performing sector across the ASX 200, led by a fall in WiseTech Global (-5.11%), Xero (-2.3%), NextDC (-1.72%) and Life360 (-1.23%).
Reliance Worldwide (-5.44%) was the worst performing stock in the open after flagging 34.9% decline in first-half profit driven by the impact of US tariffs and weaker demand in the US and UK.
Sims (-3.47%) dropped after earnings were hit by a $60 million expected credit loss related to the liquidation of UK-based Unimetals last year.
Australian shares to open higher as global volatility eases
The news: Australian shares are set to open higher as global markets steadied on Monday after Friday's AI-related sell-off, with thin trading conditions due to the Lunar New Year holiday in Asia and Presidents' Day Holiday in the US.
S&P 500 futures were flat, Nasdaq 100 futures slipped 0.2%, and Europe’s Stoxx 600 edged 0.1% higher.
The numbers: Updated at 7:23am AEDT:
- ASX futures: up 49 points to 8,947.
- Europe: CAC 40 up 0.06%, DAX down 0.46% and FTSE 100 up 0.26%.
- Spot gold: down 1.06% to USD4,990 per ounce.
- Oil prices: Brent up 1.39% to USD68.69/bbl and US WTI up 1.44% to USD63.80/bbl.
- AUD: up 0.06% at 70.75 US cents.
- Bitcoin: down 0.88% to USD68,172.
The context: Trading volumes were thin with US markets closed for the Presidents’ Day holiday and mainland China shut for the Lunar New Year. The outlook for US interest rates remained in focus after a softer-than-expected US inflation print, with traders fully pricing a Federal Reserve rate cut in July. Futures imply a 68% probability of a June cut and 62 basis points of easing this year, according to Reuters.
European shares pared gains late in the session, supported by a rebound in heavyweight banking stocks after AI-related concerns weighed on the broader financials sector last week.
Elsewhere, precious metals prices eased, though the most actively traded gold futures held above $5,000 a troy ounce. Brent crude futures rose more than 1% ahead of a second round of talks between the US and Iran.
A raft of economic data is due this week, including inflation data for the UK, Canada and Japan, as well as preliminary readings on global business activity and US gross domestic product for the fourth quarter due on Friday.
Locally, Challenger, Judo Bank, Reliance Worldwide, Baby Bunting, Sims, Palo Alto Networks, BHP and Seek are scheduled to report half-year earnings this morning.
