Australian shares are tipped to open higher on Friday, despite a sharp sell-off in US technology stocks raising fresh questions about the returns from heavy AI spending.
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With quarterly reporting season wrapping up and commodity prices mostly weaker overnight, investors will be watching whether the local market can hold its recent recovery.
What to watch today
ASX 200 futures were up 32 points, or 0.35%, pointing to a higher open.
Wall Street saw a split session as investors rotated away from some of the biggest technology names and towards defensive sectors and smaller companies.
The Nasdaq fell 1.38%, while the S&P 500 slipped 0.30% and the Dow Jones lost 0.25%. The Russell 2000, which tracks smaller US companies, rose 1.01%.
Alphabet plunged 12.6% after its latest results reignited concerns about AI spending, weaker-than-expected search revenue and negative free cash flow. Software stocks also came under pressure, with Fortinet and ServiceNow each falling more than 20%.
The broader market held up better, with healthcare, real estate and financials among the stronger US sectors.
For the ASX, the question is whether that defensive rotation continues, or whether investors return to miners and technology stocks after their recent recovery.
Materials and technology had gained ground over the past few sessions, but weaker copper and gold prices could test the rebound in resources.
On the calendar
- 11:30am AEDT: Australian September-quarter Producer Price Index (PPI).
- Bank of Japan: Interest rate decision at 2pm AEDT.
- Quarterly reporting season: The final day brings a large volume of company updates, particularly among smaller listed companies.
The PPI release will provide another look at price pressures across the Australian economy, while investors continue to assess the outlook for interest rates.
A busy final day of quarterly reporting brings updates across resources, industrials, financial services and healthcare.
With hundreds of updates hitting the market, investors will be looking beyond headline revenue growth to margins, forward guidance and evidence that earnings momentum can continue.
Local market news
Civmec (ASX: CVL) had delivered record quarterly revenue of $324M;
Jacaranda Natural Resources (ASX: JRL) has kicked off drilling beneath historic Globe gold project;
Tusker Minerals (ASX: TSK) has received positive Central Rutile application recommendation;
Ardea Resources (ASX: ARL) planning to expand Kalgoorlie Nickel project studies; and
Indiana Resources (ASX: IDA) has intersected gold mineralisation with RC drilling at Company Well.
Buck and ore
Now – in forex, the Oz dollar is buying US$0.702,
Looking at commodities, all in the greenback,
Iron Ore was up 0.01% to $90.71 in Singapore today,
Brent Crude was up 0.28% to $115.640 per barrel,
Gold was selling at $4021.33,
US natgas futures were down 4.24% to $2.9034 per gigajoule.
That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.
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