ASX opens higher as investors await development in US-Iran talks
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More news: Australian shares opened higher as investors remained optimistic about the progress in US-Iran peace talks overnight, with mining stocks leading the positive session.
The benchmark ASX 200 was up by 78.5 points, or 0.89%, to 8,872 at 10:50am AEST. Six of the 11 sectoral indices opened in the green.
Miners (+2.92%) was the strongest performing sector at the open, supported by a lift in BHP (+3.33%), Rio Tinto (+2.30%), Fortescue (+2.08%) and Northern Star (+2.93%).
Orica (+5.44%) was among the strongest performing stocks at the open after reporting a 20-year earnings high in the first quarter.
Deep Yellow (+7.8%), Silex Systems (+7.7%), IperionX (+7.74%) and Paladin Energy (+6.78%) were among the best performing stocks across the ASX 200 at the open.
Elsewhere, energy (-2.66%) was the weakest performing sector, weighed down by Woodside (-4.16%), Santos (-2.60%), Ampol (-3.57%) and New Hope (-3.01%).
Tabcorp (-21.09%) plunged at the open after AUSTRAC launched an investigation into the company following serious money laundering allegations.
Light & Wonder (-10.88%), Super Retail (-6.15%), Index (-6.09%) and 4D Medical (-4.73%) were also among the worst performing stocks at the open.
On the data front, the ABS is set to release March trade balance data, while the RBA is due to publish retail payments data at 11:30am AEST.
Australian shares to open higher as Wall St hits record on AI rally, US-Iran talks
The news: The Australian sharemarket is set to open higher after Wall Street closed at record highs for a second consecutive session on Wednesday, supported by a rally in chipmakers and AI stocks following strong corporate earnings. Signs of potential progress towards a Middle East resolution also lifted investor sentiment.
The numbers: Updated at 8:00am AEST:
- ASX futures: up 95 points to 8,892 points
- Wall Street: Dow Jones up 1.24%, S&P 500 up 1.46%, Nasdaq up 2.02%
- Europe: FTSE 100 up 2.15%, CAC 40 up 2.94%, DAX up 2.12%
- Spot gold: up 2.99% to USD4,992.07 per ounce
- Oil prices: Brent down 7.43% to USD100.73/barrel, US WTI down 6.17% to USD95.94/bbl
- AUD: up 0.75% at 72.36 US cents
- Bitcoin: up 0.59% to USD81,415.
The context: All three major US indices closed higher on Wednesday, with the Nasdaq and S&P 500 hitting fresh records amid renewed enthusiasm for chipmakers and AI-related stocks. The Nasdaq rose 2%, the S&P 500 gained 1.5% and the Dow Jones added 1.2%.
Intel rose 4.5%, extending gains from the previous session after Bloomberg reported that Apple is in early talks with Intel and Samsung to manufacture iPhone chips in the US. Advanced Micro Devices climbed 19% after reporting a 38% year-over-year increase in revenue. The Philadelphia Semiconductor Index rose 4.5%, taking its year-to-date gain to 62%, according to the Wall Street Journal.
Elsewhere, Iran is considering a new US proposal aimed at ending the near 10-week conflict, Bloomberg reported. The proposal includes sanctions removal and a moratorium on Iran’s uranium enrichment program, with Iran expected to respond via Pakistani mediators within the next two days. Brent crude fell more than 10% to below USD100 ($138) a barrel for the first time since late-April on hopes of easing supply disruptions.
On the data front, US private payrolls increased by 109,000 jobs in April, marking the largest gain in 15 months, and is pointing to continued labour market resilience. Economists polled by Reuters had forecast an increase of 99,000 jobs.
Locally, the Australian Bureau of Statistics will release March trade balance data, while the Reserve Bank of Australia is due to publish retail payments data at 11:30am AEST.
