The Australian sharemarket is expected to open higher on Monday, following a strong rebound on Wall Street on Friday, even as investors brace for a volatile trading week amid heightened geopolitical and economic uncertainties.
At 8:00 am AEDT (9:00 pm GMT) ASX futures rose 48 points, or 0.6%, indicating a potential recovery at the start of trade.
Markets are preparing for a wave of market-moving events, particularly as the U.S. is set to impose planned tariffs on Tuesday.
Mexico has proposed matching U.S. tariffs on China, raising speculation that Washington might delay tariff implementation.
Among commodities, Iron ore prices fell 2.2% to US$102 per tonne, with traders concerned that higher tariffs on Chinese steel imports could dampen demand for Australian iron ore.
Meanwhile, Bitcoin surged back above US$90,000 after U.S. President Donald Trump stated that his administration’s crypto strategic reserve initiative was gaining momentum.
Investors will also turn their attention to China’s National People’s Congress, which convenes this week, to assess whether Beijing officials will announce additional stimulus measures to support economic growth following the introduction of higher U.S. tariffs.
This week, Australian investors will monitor key economic data releases, including quarterly business inventories and gross profits, RBA meeting minutes, retail sales figures, gross domestic product (GDP) growth, and trade balance data.
On the bond markets, yields were lower across the curve, with 10-year and 2-year rates down 0.3% and 0.7% to 4.301% and 3.740%, respectively.
