Australian shares are expected to open flat on Thursday as traders remain cautious amid escalating tensions in the Middle East.
ASX futures rose just 3 points, or less than 0.1%, as of 7:00 am AEST, following a largely unchanged session yesterday.
Gains in energy stocks, driven by fears of a broader conflict in the Middle East, helped counter losses in the technology and consumer sectors.
Overnight, oil prices stabilised after a sharp surge in the previous session. A surge in crude options betting on prices reaching $US100 per barrel suggests that some traders are hedging against potential supply disruptions in the Middle East.
The conflict between Israel and Hezbollah intensified, with ground combat escalating in southern Lebanon, leading to casualties on both sides.
On Wall Street, U.S. markets remained subdued ahead of Friday’s September jobs data, which could influence expectations around future interest rate cuts.
The Dow Jones, S&P 500, and Nasdaq all edged up by less than 0.1%.
In other data, ADP reported that U.S. private payrolls increased by 143,000 in September, following a weak August, the lowest gain since March 2023.
In local corporate news, Perenti and Alliance Aviation will hold their annual general meetings today, while ARB, New Hope, and Myer are set to trade ex-dividend.
On the bond markets, 10-year and 2-year rates were at 3.783% and 3.637%, respectively.