ASX jumps 2% in early trade; Guzman y Gomez surges on Q3 sales result
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More news: The Australian sharemarket climbed in morning trade, with tech and mining stocks leading a broad rally across the market.
The benchmark ASX 200 index was up 2.1% to 8,760.3 at 10:30am AEST, with all 11 sectoral indices in the green.
The tech segment leapt 5.1%, with data centre operator NextDC up 6.8% after launching a $1 billion wholesale offer of subordinated hybrid securities.
Fast food chain Guzman y Gomez rocketed 16.4% after reporting a 20% increase in Q3 network sales and reaffirming its full-year guidance.
Oil and gas companies retreated, with Karoon Energy (-1.4%), Beach Energy (-1.3%), Ampol (-1.0%), Santos (-0.5%) and Woodside Energy (-0.5%) making up five of the worst 10 performers on the ASX 200.
Australian shares to rise as Trump’s Iran deadline looms over markets
The news: The Australian sharemarket is set to edge higher at the open after a four-day closure for the long weekend, with US stocks advancing on Monday.
The numbers: Updated at 7:40am AEST:
- ASX futures: up 5 points, or 0.05%, to 8,614
- Wall Street: Dow Jones up 0.36%, S&P 500 up 0.44% and the Nasdaq up 0.54%
- Europe: CAC 40 down 0.24%, DAX down 0.56% and FTSE 100 up 0.69%
- Spot gold: down 0.56% to USD4,651 per ounce
- Oil prices: Brent up 0.55% to USD109.63/bbl and US WTI up 0.96% to USD112.61/bbl
- AUD: up 0.39% at 69.17 US cents
- Bitcoin: up 1.03% to USD69,683
The context: The three main Wall Street indices all rose on Monday as traders reacted to escalating threats from US President Donald Trump following Iran’s rejection of a US ceasefire proposal.
Iran reportedly demanded a permanent end to the war, lifting of sanctions, and reconstruction efforts, in addition to protocol for safe passage through the Strait of Hormuz, according to the state-run Islamic Republic News Agency.
Trump warned “the entire country can be taken out in one night and that night might be tomorrow night,” with his deadline for Tehran to reopen Hormuz by Tuesday 8pm local time (10am Wednesday AEST) approaching.
