ASX opens higher on renewed hopes for a second round of peace talks
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More news: Australian shares opened higher, mirroring Wall Street’s rally overnight on optimism over a potential second round of peace talks between the US and Iran in Pakistan over the next couple of days.
The benchmark ASX 200 index was up by 22 points, or 0.25%, to 8,992 at 10:30am AEST. Seven of the 11 sectorial indices opened in the green.
Tech (+1.62%) was the strongest performing sector for a second consecutive session, supported by a lift in WiseTech Global (+3.68%), Technology One (+2.07%), Codan (+3.02%) and Megaport (+3.21%).
Evolution Mining (+6.52%) was the strongest performing stock across the ASX 200 after generating $406 million in quarterly cashflow.
Mesoblast (+4.72%) was also among the best performers after acquiring a license to a patented chimeric antigen receptor technology platform.
Elsewhere, energy (-2.37%) was the weakest performing sector, weighed down by Viva Energy (-5.09%), Lynas Rare Earths (-3.94%), Woodside (-3.75%) and Beach Energy (-3.16%).
Outside of energy stocks, Telix Pharmaceuticals (-6.02%) was also one of the worst performers at the open.
On the macro front, Anthony Albanese and Penny Wong will continue meetings in Brunei and Malaysia regarding two-way trade deals in energy supplies, fertiliser and critical goods.
Australian shares to rise as Iran peace hopes near Wall St record
The news: The Australian sharemarket is set to open higher after Wall Street surged toward record highs as optimism over potential peace talks between the US and Iran had lifted investor sentiment.
The numbers: Updated at 7:49am AEST:
- ASX futures: up 35 points to 9,030 points
- Wall Street: Dow Jones up 0.66%, S&P 500 up 1.20%, Nasdaq up 1.96%
- Europe: FTSE 100 up 0.25%, CAC 40 up 1.12%, DAX up 1.27%
- Spot gold: up 2.03% to USD4,841.95 per ounce
- Oil prices: Brent down 4.89% to USD94.50/barrel, US WTI down 7.15% to USD91.99/bbl
- AUD: up 0.42% at 71.25 US cents
- Bitcoin: down 0.36% to USD74,306
The context: All three major US indices closed higher on Tuesday, with the Nasdaq rising close to 2% to mark a 10th consecutive gain, while the S&P 500 advanced 1.2%, to near its late-January peak.
Oil prices retreated with Brent crude falling 7.9% to USD91.28 a barrel, its lowest level since 25 March.
The move comes after Trump told the New York Post on Tuesday that talks to end the Iran conflict could resume in Pakistan over the next two days, following a failed weekend negotiation that prompted the US to impose a blockade on Iranian ports.
On the data front, the US Bureau of Labor Statistics said producer price index rose 0.5% in March, unchanged from the month prior and below economists’ expectations of a 1.1% increase, according to a Wall Street Journal poll.
In equities, shares in BlackRock rallied after the company reported a 46% jump in quarterly profit.
Locally, Anthony Albanese and Penny Wong will continue meetings in Brunei and Malaysia regarding two-way trade deals in energy supplies, fertiliser and critical goods today.
