Australian shares are expected to open mixed on Wednesday following a volatile session on Wall Street, where investors shifted to safe-haven assets such as bonds and gold.
The futures market suggests that the S&P/ASX 200 will start Wednesday flat after falling 0.7% on Tuesday. This follows a series of record highs in previous sessions, with uncertainty about the Middle East conflict's impact on global markets.
Oil prices briefly surged over 5% due to supply concerns after Iran launched missiles at Israel, before easing as initial reports indicated no casualties.
Gold rose as investors sought refuge amid geopolitical tensions, while iron ore edged slightly lower. However, the crucial question remains how the situation in the Middle East will evolve, and whether the rush to haven assets will continue or reverse.
In the U.S., the Nasdaq Composite led the market decline, with Nvidia shares falling more than 3%. The NYSE FANG+ Index, which tracks leading tech giants, slid 1.5%, reflecting weakness among tech megacaps.
On the bond market, yields for the 10-year and 2-year Treasury notes remained closely watched, 3.935% and 3.577%, respectively.