Global and domestic markets presented conflicting signals ahead of the Australian trading session, with futures pointing to a lower open while other indicators suggested potential gains. Investors are also awaiting the upcoming federal budget.
Market Indicators
- SPI futures indicate the ASX 200 is expected to open approximately 0.1% lower.
- A separate projection from another source suggested Australian shares would open higher, following the S&P 500’s record close.
US Market Performance
US markets delivered mixed results in the previous session:
- The Dow Jones Industrial Average rose 0.1%.
- The S&P 500 declined 0.15%, though it closed at a new all-time high driven by a rally in chipmaker stocks, despite most stocks within the index falling.
- The Nasdaq fell 0.7%.
Investors reacted to the latest consumer price index (CPI) data, which showed a 3.8% increase in the 12 months to April, the highest reading since May 2023.
Global Commodities
Oil prices increased following reports of further setbacks in efforts to resolve the US-Iran conflict. One report cited oil reaching $US110 per barrel. The ongoing situation in the Middle East continues to draw market attention regarding potential impacts on the Strait of Hormuz, fuel costs, and inflation.
Domestic Economy
The Australian federal budget is approaching, with investors awaiting announcements on potential tax changes.