ASX edges higher lifted by energy stocks
Make us a preferred source
Make us a preferred source on Google
More news: Australian shares opened modestly higher in early trade as markets digested Tuesday’s interest rate hike from the RBA. Gains across the energy, tech and utilities sectors also lifted the benchmark higher.
The benchmark ASX 200 was up by 3 points, or 0.04%, to 8,617 at 10:32am AEDT. Eight of the 11 sectorial indices opened in the green.
Energy (+1.15%) led the strongest performing sector at the open, supported by Paladin Energy (+2.76%), New Hope (+3.83%), Beach Energy (+1.04%) and Deep Yellow (+4.07%), as Brent crude had risen to USD103 following renewed oil field strikes in the Middle East.
Sims (+9.03%) rallied and was the best performing stock across the ASX 200 after downplaying the impact of the Middle East war on its FY26 earnings.
Elsewhere, financials (-0.41%) was the weakest performing sector, weighed down by ANZ (-1.44%), QBE Insurance (-0.29%), Insurance Australia Group (-0.97%) and Westpac (-0.34%).
IperionX (-7.29%), Perseus Mining (-2.49%), Capricorn Metal (-2.04%) and Alcoa Corporation (-1.99%) were also among the worst performers at the open.
Australian shares to open higher as Wall St awaits Fed decision
The news: Australian shares are set to open higher after Wall Street ended higher on Tuesday, supported by gains in travel stocks, as the US Federal Reserve began its two-day policy meeting amid investors’ concerns over high oil prices and the Middle East conflict.
The numbers: Updated at 7:46am AEDT:
- ASX futures: up 11 points to 8,620.
- Wall Street: Dow Jones up 0.10%, S&P 500 up 0.25% and the Nasdaq up 0.47%.
- Europe: CAC 40 up 0.49%, DAX up 0.71% and FTSE 100 up 0.83%.
- Spot gold: down 0.07% to USD5,003 per ounce.
- Oil prices: Brent up 3.41% to USD103.63/bbl and US WTI up 2.67% to USD95.93/bbl.
- AUD: up 0.46% at 71.03 US cents.
- Bitcoin: down 0.36% to USD74,600.
The context: All three major US indices rose for a second consecutive session, buoyed by a rebound in airline and travel stocks following recent losses linked to the US and Israeli strikes on Iran and rising energy prices. Gains were also driven by strong bookings as travellers moved to lock in fares ahead of potential fuel cost increases.
Delta Air Lines and American Airlines rose 6.54% and 3.53% respectively after both companies raised revenue guidance for the current quarter, while Norwegian Cruise Line and Expedia Group gained 2.12% and 4.23%.
Brent crude rose 3.2% to around USD103 a barrel, its highest close since August 2022, following reports of strikes on Iraq’s Majnoon oil field and a UAE gas field, that forced a suspension of operations, adding to supply concerns.
Elsewhere, concerns over elevated oil prices remain in focus as Federal Reserve policymakers weigh inflation risks against signs of a softening labour market. The Federal Reserve began its two-day monetary policy meeting on Tuesday, with traders expecting borrowing costs to be left on hold in Wednesday’s decision.
Locally, Westpac and the Melbourne Institute are scheduled to release their Leading Index figures for February at 10:30am AEDT.
