ASX opens higher as miners extend rally; Telix sinks 15%
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More news: Australian shares opened higher as miners extended their recent rally, while shares in Telix Pharmaceuticals tumbled after the biotech group received a subpoena from the US Securities and Exchange Commission on Tuesday.
The benchmark S&P/ASX 200 index was up 32.6 points, or 0.38%, to 8,709.8 at 10:30am AEST. Six of the 11 sectoral indices were in the green.
Materials, up 2%, was the best performing sector, as iron ore heavyweights Rio Tinto (+2.7%), Fortescue (+2.3%) and BHP (+2.1%) rallied for the second straight session.
Smaller miners Alcoa Corporation (+4.6%), Mineral Resources (+4%) and Whitehaven Coal (+3.7%) were the best performers across the ASX 200.
Telix was the worst performer, dropping 15% on Tuesday's news, followed by uranium miner Paladin Energy (-9.4%) which reported full-year production at the bottom of its guidance range. Uranium rivals Boss Yellow (-3.6%) and Deep Yellow (-2.4%) also fell.
Australian shares to rise as US stocks hold record highs
The news: Australian shares are due to rise at the open after a mixed session on Wall Street, as traders prepare for the first of the "Magnificent Seven" tech giants to report on Wednesday (Thursday AEST).
The numbers: Updated at 7:30am AEST:
- ASX futures: up 40 points, or 0.46%, to 8,681 points
- Wall Street: Dow Jones up 0.40%, S&P 500 up 0.06%, and Nasdaq down 0.39%
- Europe: CAC 40 down 0.69%, DAX down 1.09%, and FTSE 100 up 0.12%
- Spot gold: up 1.01% to USD3,431 per ounce
- Oil prices: Brent up 0.23% to USD68.75/bbl, and US WTI down 1.25% to USD66.36/bbl
- AUD: up 0.47% to 65.55 US cents
- Bitcoin: down 0.10% to USD119,655.
The context: The S&P 500 edged higher to set a fresh record high after a mixed session which saw car manufacturer General Motors shed 8.1% after reporting a USD1 billion hit to its second-quarter result due to US President Donald Trump's tariffs.
Electric car maker Tesla (+1.1%) and Google parent Alphabet (+0.7%) both gained a day before their second-quarter earnings on Wednesday.
Meanwhile, investors also monitored events in Washington, as Trump announced an agreement with the Philippines, reducing the tariff rate on the country's exports from 20% to 19%, after meeting with President Ferdinand Marcos Jr.
