Futures Point to Muted Start for ASX as Global Markets Diverge
Market Direction
The Australian share market is poised for a cautious open, with SPI futures suggesting the ASX 200 will begin the session flat to slightly lower. Forecasts point to a decline of around 0.1%. This follows a divergent session on Wall Street.
Wall Street Performance
The Dow Jones Industrial Average edged up 0.1%, while the broader S&P 500 fell 0.15% and the tech-heavy Nasdaq Composite dropped 0.7%.
Despite the mixed index results, the S&P 500 still managed to close at a record high, fueled by a rally in chipmaker stocks. This occurred even as a majority of stocks within the index declined. US markets are digesting the latest Consumer Price Index (CPI) data, which showed inflation rose 3.8% in the 12 months to April—the highest reading since May 2023.
"The S&P 500 closed at a record high, driven by a rally in chipmaker stocks."
Energy Market
Oil prices have surged to $US110 per barrel, according to one report. The rise is attributed to setbacks in efforts to resolve the US-Iran conflict, keeping market focus on concerns regarding the Strait of Hormuz, fuel costs, and inflation. The ongoing conflict in the Middle East was also cited as a key factor in the price increase.
Economic Outlook
With the Australian federal budget approaching, investors are closely watching for any announcements regarding potential tax changes.