Higher prices for mining companies could lift the Australian sharemarket to a new peak on Wednesday as the impact of stronger gold and iron ore futures offsets a weaker night on Wall Street.
Futures trading on the Australian Securities Exchange (ASX) points to the market’s200 stock index rising 0.2% when trading begins at 10 am AEST (12 pm GMT Tuesday).
At the time of writing , the S&P/ASX 200 September share price index (SPI) contract was trading 11 points above the previous settlement at 8,739 points.
This was despite United States stock indices reversing on Tuesday (Wednesday AEST) in response to weaker-than-expected economic data and trade concerns raised by comments from President Donald Trump and corporate results.
“Aussie shares are likely to inch higher at the open on Wednesday, traversing all-time highs. We closed at a record (closing) high yesterday and we are approaching the all-time (intraday) highs that we saw a few weeks ago,” Chief CommSec Economist Ryan Felsman said.
He said the market would be supported by miners as gold and iron futures rose overnight.
“We should see both the gold and iron ore producers lifting the local sharemarket, potentially losses by energy stocks,” Felsman said.
Oil price futures fell on concerns about a lift in OPEC+ production, weaker global demand and concerns that Trump will threaten to increase tariffs on India due to its relationship with Russia.
Expectations of another interest rate cut in Australia had supported interest-rate sensitive sectors.
U.S. Investors reacted to the impact of tariffs on Yum Brands and Caterpillar, remarks by Trump that new tariffs on semiconductors and pharmaceuticals were imminent and data that raised fears of stagflation.
The Australian market registered a record closing level on Tuesday with the S&P/ASX 200 finishing up 1.2% at 8,770.4.
On fixed interest markets, the Australian Government bond yield curve flattened as 10-year rates dropped 0.38% to 4.197% and two-year rates were 0.03% lower at 3.261%.
