ASX Market Wrap: Local Shares Climb as Wall Street Hits Records While Brent Crude Slips Below US$100

Key Highlights

• ASX 200 rebounds 0.62% despite weak futures pointing to a sharp morning fall
• Wall Street optimism lifts global sentiment after Dow closes above 50,500
• Brent crude drops more than 4% to trade below US$100 a barrel
• Materials and gold stocks lead gains as energy shares retreat sharply
• Guzman y Gomez extends rally after exiting underperforming US operations

Australian shares pushed higher on Monday, shrugging off early fears of a heavy sell-off as falling oil prices and fresh optimism from Wall Street helped steady market sentiment.

The benchmark S&P/ASX 200 climbed 0.62% to 8,710.9 points by midday after futures earlier signalled a decline of almost 0.7% at the open. The broader All Ordinaries index gained 0.61%, while the ASX 300 and ASX 100 also traded firmly in positive territory.

The local turnaround followed another record-setting finish on Wall Street, where the Dow Jones Industrial Average rose 0.58% to close above 50,579 points for the first time. The S&P 500 added 0.37%, extending its winning streak to eight straight weeks, its longest run since late 2023.

ASX Sector Snapshot | Source: MarketIndex 

Global markets appeared encouraged by signs of easing pressure in bond markets and expectations that the new leadership at the US Federal Reserve may take a more growth-friendly approach.

Kevin Warsh officially began his tenure as Federal Reserve Chair following a White House ceremony hosted by President Donald Trump, who reiterated his preference for lower borrowing costs to support economic expansion.

Asian markets followed the positive lead overnight.

Japan’s Nikkei 225 surged 2.68%, South Korea’s KOSPI gained 1.6%, while Hong Kong and Shanghai also finished stronger.

The biggest macro shift, however, came from energy markets.

Brent crude plunged 4.1% to US$99.29 a barrel, slipping below the psychologically important US$100 threshold for the first time in weeks. West Texas Intermediate also fell sharply to US$92.52.

The decline followed mounting speculation that tensions involving Iran may ease, potentially reopening shipping flows through the Strait of Hormuz, one of the world’s most important oil transit corridors.

That move sent Australian energy stocks lower, with the sector dropping 2.23%, making it the weakest performer on the market.

Companies exposed to oil and gas prices came under pressure, including Karoon Energy and Viva Energy.

Commodities | Source: MarketIndex 

At the same time, the federal government’s proposed east coast gas reservation scheme continued to ripple through the market. Under the policy, LNG exporters will be required to reserve 20% of gas production for domestic use from July 2027 onward.

Grattan Institute energy expert Tony Wood said the changes had unsettled the sector.

“The gas industry is reeling from the changes,” he said.

While energy weakened, mining and gold stocks drove the broader market higher.

The materials sector jumped 2.02%, helped by a 1% rise in gold prices to US$4,562 an ounce and renewed buying across coal and precious metals producers.

Coronado Global Resources led the ASX gainers board, soaring 18.61% after announcing the sale of its Logan Mining Complex. Traders appeared to welcome the balance-sheet reset and strategic reshaping of the company’s asset portfolio.

Meeka Metals climbed 15.22% after reporting it had intersected first development ore at the Judy North project, while Resolute Mining gained almost 9% alongside strength in bullion prices.

Coal producers also found buyers despite weaker oil markets, with Whitehaven Coal and Yancoal Australia both advancing strongly.

Meanwhile, Guzman y Gomez extended Friday’s rally, climbing another 7% after the fast-food chain announced it would shut down its struggling US operations and refocus entirely on the Australian market.

The market has interpreted the move as a disciplined capital allocation decision aimed at protecting earnings growth at home rather than continuing an expensive overseas expansion.

On the downside, Arafura Rare Earths dropped more than 10% after emerging from a trading halt tied to its heavily discounted A$350 million institutional capital raise linked to the Nolans rare earths project.

Catapult Sports also slid 9.52% after last week’s sharp rally following its record revenue announcement.

Technology stocks were mixed despite broader optimism surrounding global AI momentum. The ASX All Technology Index slipped 0.60%, weighed down by declines in Appen and Seek.

Outside equities, the Australian dollar strengthened to US71.67 cents, while silver prices jumped 3.3% and copper edged higher.

The ASX volatility index remained subdued at 12.7, indicating traders expect relatively calm market conditions over the coming month.

Ocean Park Asset Management chief investment officer James St. Aubin said recent economic and earnings data continued to support risk appetite globally.

“Earnings season looked really good and the economic data, save a few outliers, looked pretty solid so fundamentally the picture looks really solid,” he said.

“The bond market seems to be cooling off and yields are coming down from where they were starting to peak earlier this week, and I think that’s very encouraging too.”

For now, markets appear increasingly comfortable with the idea that easing inflation pressures, softer oil prices, and a more accommodative policy backdrop could keep equities supported even as global growth slows.