ASX opens marginally lower as miners surge
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More news: Australian shares edged down at the open, with broad losses across the market, while miners rallied following easing US-China trade tensions.
The benchmark S&P/ASX 200 index was down 5 points, or 0.06%, to 8,877.8 at 10:30am AEDT. Eight of the 11 sectoral indices were in negative territory.
Rare earths and critical minerals miners were among the best performers as Iluka Resources (+13%), IperionX (7.9%) and Lynas Rare Earths (+7.7%) soared. Gold miners Catalyst Metals (+8.9%) and Vault Minerals (+4.7%) also saw large gains, as did lithium stocks Liontown Resources (+6.7%) and Pilbara Minerals (+5.2%).
The broader mining sector was up 2.9%. Iron ore giants Fortescue (+2.3%) and BHP (+1.7%) were both higher, while rival Rio Tinto leaped 3% after upgrading its bauxite production guidance and reaffirming output forecasts across the rest of the business.
Australian shares to rise as Wall Street rebounds on US-China, AI optimism
The news: Australian shares are set to open higher after US stocks rebounded overnight, as President Donald Trump eased investor concerns over US-China trade relations.
The numbers: Updated at 7:30am AEDT:
- ASX futures: up 27 points to 8,927
- Wall Street: Dow Jones up 1.29%, S&P 500 up 1.56% and Nasdaq up 2.21%
- Europe: CAC 40 up 0.21%, DAX up 0.60% and FTSE 100 up 0.16%
- Spot gold: up 2.41% to USD4,110 per ounce
- Oil prices: Brent down 2.08% at USD63.46/bbl and US WTI up 2.30% to USD59.58/bbl
- AUD: up 0.66% to 65.17 US cents
- Bitcoin: up 0.47% to USD115,697.
The context: The benchmark S&P 500 saw its best session since May after Trump said US did not want to "hurt" China. Stocks were sent tumbling on Friday after he threatened to apply an additional 100% tariff on Chinese imports.
Investor sentiment was also boosted as Trump declared an end to the war in Gaza, calling the release of 20 Israeli hostages and nearly 2,000 Palestinian prisoners “the historic dawn of a new Middle East”.
Meanwhile, a key gauge of US chipmakers added nearly 5%, as Broadcom jumped 10% after OpenAI agreed to buy its custom chips and networking equipment in a multiyear agreement.
Investors will also be looking ahead to the unofficial start of earnings season, with a number of big banks reporting on Tuesday US time.
In the local market, telcos Telstra and Aussie Broadband are among the companies set to hold their annual general meetings today.
