Australian shares are expected to open higher on Wednesday, following a strong lead from Wall Street as easing oil prices and robust United States corporate earnings supported global risk sentiment.
ASX 200 futures rose 38 points, or 0.4%, to 8,719, indicating a positive start for the local market.
The upbeat tone comes after U.S. equities rallied overnight, with the Dow Jones Industrial Average gaining 0.7%, while both the S&P 500 and Nasdaq Composite notched fresh record closing highs, rising 0.8% and 1%, respectively.
In corporate developments, technology stocks led gains after reports that Apple had held exploratory discussions with Intel and Samsung Electronics regarding the production of key processors in the United States. The news sent Intel shares surging 13%, while Apple rose 2.6%.
Investor sentiment was further bolstered after U.S. President Donald Trump said he would pause “Project Freedom”, the military operation aimed at escorting commercial vessels through the Strait of Hormuz.
The move comes just one day after the initiative began and reflects growing optimism around a potential agreement with Iran.
In a post on Truth Social, Trump said the decision was partly driven by “the fact that Great Progress has been made toward a Complete and Final Agreement” with Iran. He added that the operation “will be paused for a short period of time to see whether or not the Agreement can be finalised and signed”.
Geopolitical tensions in the Middle East appeared to stabilise, with U.S. Defence Secretary Pete Hegseth and Joint Chiefs Chairman General Dan Caine stating that recent Iranian actions had not crossed the threshold of “major combat operations”.
Caine described Tuesday as a “quieter” day in the Strait of Hormuz, easing concerns of further escalation.
The Australian sharemarket eased in the previous session, posting declines of 16.6 points, or 0.2%, to 8,680.5 as investors digested the Reserve Bank of Australia’s latest interest rate increase.
On the domestic front, investors are watching upcoming corporate updates, with Amcor scheduled to release its latest results and Rio Tinto set to hold its annual general meeting.
On the bond markets, Australian government yields were mixed, with the 10-year yield rising 0.3% to 4.971%, while the 2-year yield fell 0.4% to 4.668%.
