ASX edges lower despite tech stock rally
Make us a preferred source
Make us a preferred source on Google
More news: Australian shares opened modestly lower as continued uncertainty over fragile US-Iran ceasefire talks weighed on global market sentiment, despite a Wall Street tech rally on Friday ahead of the ASX trading week.
The benchmark ASX 200 was down by 10.7 points, or 0.12%, to 8,721 at 10:31am AEST. Eight of the 11 sectoral indices opened in the red.
Tech (+4.8%) was the strongest performing sector at the open, supported by a rally in Xero (+4.9%), WiseTech (+5.3%), Technology One (+2.6%) and Life360 (+3.3%).
Pro Medicus (+10.5%) was the top performing stock across the ASX 200 at the open after signing a five-year contract renewal with US-based Allegheny Health Network.
4D Medical (+5.5%) advanced at the open after announcing a major expansion into Europe, boosted by the acquisition of Austria-based medtech Contextflow.
Elsewhere, consumer staples (-1.9%) was the weakest performing sector, weighed down by Woolworths (-1.6%), Coles (-0.8%), A2 Milk (-7.8%) and Bega Cheese (-1.09%).
Lendlease (-6.6%) fell after booking a $175 million loss on its Milan-based development sale.
DroneShield (-10.6%), Resmed (-7.9%), Centuria Capital (-4.0%) and Web Travel Group (-4.0%) were also among the worst performing stocks.
On the data front, ANZ-Indeed is set to publish job advertisements report for May today.
Australian shares to open lower despite Wall St gains on US-Iran peace hopes
The news: The Australian sharemarket is set to open lower despite Wall Street closing higher on Friday, as easing oil prices and hopes for a ceasefire in the US-Iran conflict lifted global markets and extended a record run in equities, supported by continued strength in artificial intelligence-related stocks.
The numbers: Updated at 8:00am AEST:
- ASX futures: down 13 points to 8,737 points
- Wall Street: Dow Jones up 0.72% on Friday, S&P 500 up 0.22%, Nasdaq up 0.20%
- Europe: FTSE 100 down 0.16% on Friday, CAC 40 down 0.07%, DAX up 0.05%
- Spot gold: down 0.47% to USD4,519.81 per ounce
- Oil prices: Brent up 2.13% to USD92.02/barrel, US WTI up 2.78% to USD89.81/bbl
- AUD: down 0.19% at 71.72 US cents
- Bitcoin: down 0.15% to USD73,641.
The context: The S&P 500 recorded its ninth consecutive weekly gain, its longest winning streak since December 2023, according to Reuters. A narrow rally led by tech stocks lifted all three major US indices, while benchmark US Treasury yields fell for a fourth straight session.
Dell Technologies surged 33% on Friday after reporting strong first-quarter earnings and highlighting robust demand for AI servers. Brent crude settled around USD92 ($128) a barrel, while US Treasury yields declined amid optimism over progress in US-Iran peace negotiations.
Global markets continue to be driven by developments in the conflict after Trump sent back proposed changes to a framework agreement to end the war with Iran following a two-hour Situation Room meeting on Friday, extending negotiations into another week.
Trump is seeking stronger commitments from Iran on its nuclear program and the reopening of the Strait of Hormuz. According to Axios, the current memorandum of understanding commits Iran not to pursue nuclear weapons but does not require specific concessions on its existing nuclear program or enriched uranium stockpile, with those issues deferred to a separate 60-day negotiation period alongside discussions on US sanctions relief.
The three-month conflict has increased inflationary pressures, raising concerns that higher prices could become more established the longer the war continues. US Federal Reserve officials are now considering the possibility of hiking interest rates to counter that growing risk, according to Reuters.
Locally, the ANZ-Indeed job advertisements report for May is due, while S&P Global will release the final Australian manufacturing PMI for May at 9:00am AEST. It is a public holiday in the ACT and WA.
