A mixed session on Wall Street overnight has set the tone for local market action today, with Australian shares expected to rise.
ASX futures were up 26 points or 0.3% to 8,373 at 7:30am AEDT.
The benchmark S&P 500 index gained 0.5%, while the Dow Jones Industrial Average added 408 points, or 0.9%. The Nasdaq Composite rose 0.2%.
Healthcare and banking boost S&P
The S&P 500 climbed to a record high of 6,103 points overnight, led by healthcare and banking stocks.
Among corporate earnings, GE Aerospace surged 6.6% after raising its profit forecast for 2025, while American Airlines (NASDAQ:AAL) tumbled 8.7% on disappointing profit guidance.
Electronic Arts (NASDAQ:EA) plunged 16.7% after cutting its annual bookings forecast. The tech sector faced further pressure as South Korea’s SK Hynix provided a lacklustre outlook, sending global chipmakers lower.
The new US president has been making his presence felt, holding a virtual address at the World Economic Forum in Davos, Switzerland, in which he demanded that interest rates fall immediately – an interesting approach to intervening in an independently determined monetary policy.
He also voiced plans to pressure Saudi Arabia and OPEC to lower crude oil prices.
European markets closed higher, supported by gains in banking and real estate stocks. The pan-European FTSEurofirst 300 index added 0.4%, while the UK FTSE 100 index gained 0.2%.
Technology stocks weighed on the region, however, with ASML (AS:ASML) dropping 4.4% and Puma (OTC:PMMAF) plummeting 22.8% after missing profit expectations.
Currencies and commodities
In commodities, global oil prices slipped following Trump’s comments urging OPEC to reduce crude costs.
Brent crude fell 0.9% to US$78.29 per barrel, while West Texas Intermediate (WTI) dropped 1.1% to US$74.62 per barrel. Base metals showed mixed results, with copper rising 0.7% but aluminium slipping 0.2%.
In currency markets, the Australian dollar strengthened, trading at 62.80 US cents by the US close. Meanwhile, the US 10-year Treasury yield rose five basis points to 4.65%, reflecting ongoing uncertainty around US policy.
With rising global equities and a strong lead from Wall Street, Australian shares are expected to benefit today, particularly in sectors tied to commodities and financials.
Investors will be keeping a close eye on the evolving Trump 2.0 policies and their potential impact on global markets.