Futures Point to Strong ASX 200 Open
The ASX 200 is expected to open higher, with futures up 46 points or 0.53% at 8:30 am AEST. This follows strong overnight cues from Wall Street. US indices closed near session highs on bond auction strength and inflation relief.
US Markets End Higher on Solid Economic Indicators
US stocks gained ground after a strong 30-year bond auction and cooling producer prices supported market sentiment. The US 10-year Treasury yield fell five basis points to 4.36%, aiding equity rallies across sectors. Core producer prices rose 0.1% in May, below the expected 0.3%, with year-on-year growth slowing to 3.0%. That figure marks the lowest annualised growth in core PPI since August 2024, easing inflation concerns.
AI and Tech Drive Gains, Oracle Leads Rally
Oracle shares jumped 13% after issuing revenue guidance that exceeded analyst expectations. Investors welcomed signs of robust demand in Oracle’s cloud infrastructure and AI segments. AMD’s CEO also stated its latest AI chips can rival Nvidia, helping lift broader sentiment in the tech space.
Gold Miners Poised to Benefit from Rally
Gold miners are expected to gain further following a 3.0% jump in the VanEck Gold Miners ETF overnight. The ETF now trades within 1% of recent highs, indicating strong sector momentum heading into local trade. Most Australian gold stocks advanced 2-5% on Thursday and may extend those gains today.
Local News: Accent Group and Dalrymple Bay in Focus
Accent Group (ASX: AX1) guided FY25 EBIT to $108-111 million, below consensus estimates of $113 million. Like-for-like sales for the first 23 weeks to 8 June declined by 1%, raising concerns over retail performance. Dalrymple Bay Infrastructure saw a large block trade overnight, with Brookfield offloading 23% of the company. The shares were sold at $3.72, a 7.9% discount to last close, but raised free float expectations. Brookfield said this could enhance the stock’s ASX 200 eligibility, attracting new institutional investors.
Global Trade: Tariff Headlines Remain Active
Trade relations between the US, India, and Japan appear strained amid rising disagreement over agriculture and data rules. Trump has hinted at setting new tariffs within weeks, though he remains open to extending deadlines. China reaffirmed its existing trade deal with the US, calling for both sides to honour commitments. Vietnam’s trade minister met executives from Nike and Walmart ahead of key trade negotiations. Japan’s Prime Minister Ishiba noted major differences with US negotiators, delaying potential agreements.
Also Read: ASX Penny Stocks: Top Growth Picks Under A$700M Amid Market Optimism
Recession Fears Ease as Investors Reposition
Goldman Sachs lowered its 12-month recession odds, citing reduced trade uncertainty and improving global growth indicators. Investors shifted funds from US equities into European and emerging markets during May due to deficit concerns. Japan companies launched buybacks at a record pace in 2025 to improve returns, supporting equity demand.
Central Banks: RBI Surprises Markets with Rate Cut
The Reserve Bank of India cut its key rate by 50 basis points and returned to a neutral policy stance. This unexpected move confused markets and added volatility to regional trading early in the session.
UK and Australian Economic Data Update
UK GDP contracted by 0.3% in April, the first drop in six months following tax and tariff increases. In Australia, inflation expectations rose to 5.0% in June, the highest level since July 2023, survey data showed. This trend may keep pressure on the Reserve Bank of Australia as it weighs future policy directions.
What to Watch: ASX Eyes Record Close
The ASX 200 looks set to test record highs, supported by Wall Street gains and easing US inflation. Ongoing tariff uncertainty may be offset by positive inflation readings and solid bond market demand.
Broker Moves and Ratings Updates
Cettire was downgraded to Sell from Hold with a target price cut to $0.28 from $0.475. Endeavour Group received a Hold rating with a target price of $4.50. Goodman Group received a Buy rating and a price target of $39 from Goldman Sachs.
