The Australian sharemarket is set to open higher on Thursday, snapping a three-day losing streak, after United States President Donald Trump dropped his tariff threats against Europe, triggering a sharp reversal in global markets and a relief rally on Wall Street.
Futures pointed higher after recovering from earlier double-digit losses, as risk appetite improved following Trump’s comments easing tensions over Greenland.
Bargain hunters returned to markets after Trump said ahead of his address at the World Economic Forum in Davos that he would not use force to take control of Greenland.
United States benchmarks extended gains later in the session after the president said a “framework” had been agreed upon for the Danish territory.
The Dow, S&P 500 and the Nasdaq Composite each advanced 1.2% apiece.
In Australia, attention also turned to fiscal policy after the Organisation for Economic Co-operation and Development (OECD) warned the nation’s debt burden is set to rise rapidly without significant budget repair.
In its 2026 Australian Economic Survey, the OECD said “spending pressures have been strong” across both federal and state budgets, warning that deficits are projected to persist for years. It said that, with rising costs linked to population ageing and the climate transition, there should be “a greater sense of urgency about improving the public finances”.
The OECD urged the federal government to implement its plan to steadily narrow the deficit in order to place the debt-to-GDP ratio on a stable or downward path, cautioning that failure to act would see the ratio move onto a “steep upward path”.
At the company level, Fortescue reported iron ore shipments of 50.5 million tonnes in the second quarter of FY26, setting a new first-half shipment record for the miner.
Wealth manager Insignia Financial added $1.5 billion to its funds under management and administration in the December quarter, despite recording net outflows of $73 million.
Chief executive Scott Hartley said the increase was supported by positive market movements and “encouraging” net inflows into the group’s wrap platforms business.
Hartley said master trust outflows “remain a challenge” and noted that a “significant program of work” is underway to align and uplift adviser service experience, strengthen the product proposition and enhance member engagement.
On the data front, the Australian Bureau of Statistics will release December labour force figures at 11:30 am AEDT (12:30 am GMT).
The Australian sharemarket finished x lower in the previous session. On bond markets, the 10-year and 2-year yields were down 0.4% and 0.2% at 4.725% and 4.047%, respectively.