Australian shares are expected to edge higher on Tuesday after BHP Group and the broader resources sector powered the market to fresh highs in the previous session, while a technology-led pullback on Wall Street may temper the opening mood.
ASX futures at 6.05am AEST were pointing to a 9-point, or 0.1%, rise at the open, with investors also preparing for another busy day of corporate earnings and the release of the Reserve Bank of Australia (RBA)'s July policy meeting minutes.
Coles Group, Woodside Energy, Ingenia Communities (ASX:INA), Scentre Group, AUB Group, Viva Energy, G8 Education and ARB Corporation are among companies due to report, while Bega Cheese, AGL Energy (ASX:AGK), Challenger and Vicinity Centres trade ex-dividend.
ASX closes higher as BHP hits record
The Australian market started the week firmly higher on Monday, with the S&P/ASX 200 gaining 44.2 points, or 0.49%, to 9,103.1 and the All Ordinaries rising 47 points, or 0.5%, to 9,316.7.
Resources led the advance as money continued to rotate out of financial stocks and into miners amid higher commodity prices and strong sector earnings.
BHP jumped 3% to an intraday record of A$67.72, helping push the materials sector to a fresh peak. Coal and uranium stocks also advanced, although Santos and Woodside slipped as oil prices gave back some of last week's gains.
Earnings provided another major source of movement. PLS rose 7.9%, Ampol gained 4.3% and Adore Beauty surged 19.3% following their updates, while Aussie Broadband, NIB and Endeavour Group fell between 4% and 9%.
Attention is also turning to Wednesday's July inflation data, particularly the Reserve Bank's preferred trimmed mean measure and what it could signal for the interest-rate outlook.
Wall Street mixed as Nvidia weighs on tech
US markets finished mixed as technology shares came under pressure ahead of Nvidia's results later this week.
Nvidia fell 2.9%, Micron Technology dropped 5.8% and Broadcom lost 2.6%, helping send the Nasdaq 0.8% lower and the S&P 500 down 0.3%. The Dow Jones Industrial Average bucked the trend, gaining 0.3%.
Geopolitics remained firmly in focus after the Trump administration announced an expansion of possible secondary sanctions against Iran as part of what it has described as "economic D-Day", aimed at severing economic support for Tehran. Details of the countries potentially targeted and the timing of the measures were not immediately disclosed.
US-Canada trade tensions also intensified after weekend talks collapsed and Donald Trump warned tariffs on Canadian cars, trucks and automotive parts would rise to 50% from January 1. Ford fell 3.4%, General Motors lost 1.1% and J.B. Hunt Transport Services dropped 5.7%.
In economic data later Tuesday, investors will receive US new home sales, the Richmond manufacturing index and Conference Board consumer confidence.
Europe steady ahead of key economic data
European markets were subdued as investors monitored developments surrounding Iran while preparing for a busy week of economic releases.
German and French GDP figures and Spanish inflation data are among the releases expected to provide further clues about the European Central Bank's interest-rate outlook.
Travel and leisure stocks led sector gains, rising 1.7% as crude oil prices retreated.
The FTSEurofirst 300 finished broadly flat, while London's FTSE 100 gained 0.4%.
US Treasury yields eased, with the benchmark 10-year yield falling around 4 basis points to 4.70%, while the 2-year yield was little changed at 4.24%.
Currencies
Major currencies were mostly weaker against the US dollar.
- The euro traded around US$1.1664.
- The Japanese yen stood at ¥159.12 per US dollar.
- The Australian dollar was buying around US71.48 cents.
Commodities
Oil prices retreated as traders took profits following recent gains and awaited further details on Washington's proposed sanctions against Iran.
- Brent crude futures settled 2.4% lower at US$92.17 a barrel.
Precious metals remained well supported amid concerns over US government debt and the Treasury's bond buyback plans.
- Gold futures gained 0.4% to US$4,697.80 an ounce, their highest level in more than three months.
The strength has revived interest in the so-called debasement trade, with investors favouring scarce assets such as gold and Bitcoin amid concerns that persistent fiscal deficits could erode the purchasing power of traditional currencies.
- Base metals were mixed, with copper futures gaining 0.3% while aluminium fell 2.2%.
- Iron ore futures edged 0.1% higher to US$95.34 a tonne, providing another potentially supportive signal for Australia's heavyweight miners at Tuesday's open.
