ASX Futures Point Lower as U.S.-Iran Tensions, Trump Tariffs and Oil Above $100 Weigh on Friday Open
Key Takeaways
- •Australian equities were set to decline 0.5% at the open, pressured by rising oil prices, renewed Middle East conflict, and fresh American trade tariffs.
- •New U.S. tariffs ranging from 10% to 12.5% covering roughly 60 countries were scheduled to take effect Friday afternoon AEST, with Australia subject to the highest rate.
- •Brent crude surpassed US$100 per barrel for the first time in several months after the Strait of Hormuz closure disrupted a waterway carrying approximately one-fifth of globally consumed oil.
- •Macquarie Group CEO Shemara Wikramanayake announced she would step down in November after leading the investment bank since late 2018, with Greg Ward named as her replacement.
- •Origin Energy reportedly reached a resolution with a hacker who had threatened to release customer data, with the individual confirming they would not proceed with the leak.
The Australian share market was set to open 0.5% lower on Friday morning, with ASX futures pointing to a weaker start as renewed U.S.-Iran tensions, Brent crude trading back above US$100 a barrel and Donald Trump's latest tariff measures weighed on the local session.
The new U.S. tariffs, ranging from 10% to 12.5% and applying to about 60 countries, are due to take effect at 2.01pm AEST today. The measures are currently being treated as temporary. Australia is included at the 12.5% rate.
Trump has been seeking to implement the original tariffs announced on “Liberation Day” in CY25, but the Supreme Court has been blocking those measures. In the interim, the administration has moved to apply the latest duties across a broad group of countries.
The renewed U.S.-Iran hostilities are also affecting energy markets, with Brent crude moving back above US$100 a barrel for the first time in several months. The market focus has intensified following the latest closure of the Strait of Hormuz, a narrow waterway through which roughly one-fifth of globally consumed oil transits daily. Early expectations suggest that peace is no longer being viewed as a viable option in the Middle East by Trump and his advisers.
S&P Global is also scheduled to release early June composite PMI figures today. The purchasing managers' index is widely tracked as a real-time gauge of business conditions, with readings above 50 indicating expansion and below 50 signalling contraction.
In company news, Origin Energy (ASX:ORG) has reportedly “settled everything” with the self-styled hacker who had been holding the electricity and gas retailer hostage. The alleged hacker told The Australian on Thursday that they would not proceed with a threat to leak customer data within 14 days. Origin shares were up 1.1% for the week.
Macquarie Group (ASX:MGQ) chief executive Shemara Wikramanayake has said she will step down from the top role in November. Wikramanayake has led Australia's largest investment bank since late 2018. She is set to be replaced by Greg Ward, the group's banking and financial services chief.
Mount Hope (ASX:MHM) reported “excellent” results from its maiden Phase 1 metallurgical testwork at the Mt Solitary prospect in the Cobar Basin. The company said early tests “returned coarse, visible free gold across all sizes.”
SaaS-for-insurance company Monvia is also scheduled to list today under the ticker “MNV.” The technology company is seeking to raise $17.5 million and is expected to begin trading at midday.
In other listing activity, Ceretas (ASX:CTS) recorded a 132% gain on its first day of trade.
In foreign exchange, the Australian dollar was buying US69.6c today.
Across commodities, priced in U.S. dollars, Brent crude was back above triple digits at US$100.85 a barrel. Iron ore rose 1% to US$98.10 a tonne in Singapore. Gold was trading at US$4,053 an ounce, while U.S. natural gas futures were lower at US$2.91 per gigajoule.
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