Australian shares to open higher as Wall St chip stocks rebound
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The news: The Australian sharemarket is set to open higher after Wall Street recovered overnight, as a rally in semiconductor stocks offset concerns over the latest Middle East tensions and tariff disputes ahead of earnings reports from major technology companies.
The numbers: Updated at 7:49am AEST:
- ASX futures: up 21 points to 8,763 points
- Wall Street: Dow Jones up 0.74%, S&P 500 up 0.89%, Nasdaq up 1.29%
- Europe: FTSE 100 up 0.58%, CAC 40 up 0.28%, DAX up 0.66%
- Spot gold: up 1.74% to USD4,077 per ounce
- Oil prices: Brent up 2.24% to USD91.21/barrel, US WTI up 2.57% to USD84.60/bbl
- AUD: up 0.07% at 69.99 US cents
- Bitcoin: up 1.70% to USD66,336.
The context: All three major US indices closed higher on Tuesday, led by a 1.2% gain in the Nasdaq, as a rebound in battered semiconductor stocks lifted broader markets. The Philadelphia Semiconductor Index surged 5.2%, extending gains for a second consecutive session after ending Friday more than 20% below its late-June record high.
Elsewhere, US President Donald Trump unveiled 50% tariffs on a broad range of Canadian imports overnight, due to take effect in 30 days, citing what the administration described as Canada’s discriminatory treatment of American-made cars, alcohol and dairy products. The tariffs would apply to goods ranging from wine and cement to swimming pools and ice hockey equipment, according to Reuters.
On the geopolitical front, oil prices settled 2% higher after two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea following threats from Yemen’s Iran-aligned Houthis to impose a blockade on commercial shipping. Trump said the US would respond if the Houthis carried out the threat.
Investors will now turn their focus to major technology earnings, with Tesla and Alphabet due to report on Wednesday (ET), followed by Microsoft, Meta Platforms, Apple and Amazon next week.
Locally, the Westpac-Melbourne Institute Leading Index of Economic Activity is scheduled for release at 11:00am AEST.
