ASX opens lower dragged by miners; Magellan Financial rallies on merger plans
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More news: Australian shares opened lower, dragged down by losses across the industrials and mining sectors.
The benchmark ASX 200 was down by 35 points, or 0.38%, to 9,165 at 10:34am AEDT. Eight of the 11 sectoral indices opened in the red.
Tech (+0.90%) was the best performing sector at the open, supported by a rally in Magellan Financial (+22.88%) after unveiling its plan to merge with Barrenjoey Capital Partners in the second quarter of 2026.
Fletcher Building (+4.81%) climbed at the open, after securing a 10-year contract with New Zealand Transport Agency Waka Kotahi to maintain sections of the state highway, while Life360 (+4.32%) rose after posting a 32% increase in full-year revenue.
Elsewhere, industrials (-1.16%) was the worst performing sector, led by losses in Brambles (-1.43%), SGH (+1.27%), Computershare (-1.13%) and Qantas (-2.75%).
Neuren Pharmaceuticals (-5.73%) slumped after announcing that its US listed partner, Acadia Pharmaceuticals, will seek a re-examination for its Rett syndrome treatment, trofinetide, following a setback from European Medicines Agency (EMA) committee.
Capstone Copper (-5.04%) fell despite reporting a 22% year-on-year increase in copper production in the year ended December 2025.
On the data front, the Australian Bureau of Statistics is scheduled to release December balance of payments and international investment position figures, mineral and petroleum exploration data, and government finance statistics alongside building approvals for January at 11:30am AEDT.
Australian shares to open lower as Wall St pares early losses
The news: Australian shares are set to open lower as US stocks pared earlier losses to rebound on Monday afternoon. Global markets had fallen overnight following US–Israeli strikes in Iran that left most major exchanges in the red.
Oil prices surged amid an almost complete halt to traffic through the Strait of Hormuz and disruption at a major Saudi refinery, heightening concerns over global oil supply.
The numbers: Updated at 7:46am AEDT:
- ASX futures: down 12 points to 9,145.
- Wall Street: Dow Jones down 0.21%, S&P 500 down 0.10% and the Nasdaq down 0.41%.
- Europe: CAC 40 down 2.17%, DAX down 2.56% and FTSE 100 down 1.20%.
- Spot gold: up 1.14% to USD5,338 per ounce.
- Oil prices: Brent up 8.81% to USD79.33/bbl and US WTI up 7.82% to USD72.22/bbl.
- AUD: down 0.45% at 70.83 US cents.
- Bitcoin: up 5.49% to USD69,419.
The context: The three main US indices were modestly flat overnight. Defence and energy stocks initially advanced, while travel and rate-sensitive sectors came under pressure. Investors focus then shifted to tech shares, alongside assessments of how long the Middle East conflict could persist and its implications for inflation and Federal Reserve policy.
US energy stocks outperformed, while travel and airline companies declined amid flight cancellations, higher jet fuel costs and widespread airspace closure across the Middle East. Defence stocks also gained, with Lockheed Martin and Palantir rising 3.30% and 5.34% respectively.
In Europe, France’s CAC 40 and Germanny’s DAX each fell more than 1%. Japan’s Nikkei 225 dropped 1.35%, after falling as much as 2% at the open.
Brent crude oil futures rose 7% on concerns over a potential closure of the Strait of Hormuz choke point and attacks on Middle East energy infrastructure. The yield on the US 10-year Treasury note climbed 11 basis points to 4.05%. Traders are now fully pricing in a first Federal Reserve rate cut in September.
Locally, the Australian Bureau of Statistics is scheduled to release December balance of payments and international investment position, mineral and petroleum exploration figures, government finance statistics alongside building approvals for January at 11:30am AEDT.
