The ASX is expected to open lower today, following a 20.90-point (0.23%) decline in the S&P/ASX 200 to 9,188.50 in the previous session. The Australian market's divergence from the Wall Street rally reflects the index's heavier weighting toward materials and financials, sectors more sensitive to commodity price movements and regional trade dynamics than the technology shares that drove U.S. gains.

Wall Street posted a positive overnight session, with the S&P 500 setting another record high on the back of favorable inflation data and strong corporate earnings. The broad-based index rose approximately 0.6 per cent, while the tech-heavy Nasdaq Composite (IXIC) advanced 0.8 per cent. The Dow Jones Industrial Average (DJI) gained 0.1 per cent. The inflation readings feed into market expectations for the Federal Reserve's interest-rate trajectory, with softer price-pressure data typically strengthening the case for rate cuts.

Australian Prime Minister Anthony Albanese confirmed that he spoke overnight with U.S. President Donald Trump regarding the potential removal of the recently imposed 12.5 per cent tariff on Australian exports to the United States. The tariff has been a focal point for Australian exporters, given the two countries' extensive trade relationship under the Australia-U.S. Free Trade Agreement (AUSFTA), which has governed bilateral commerce since 2005.

Meanwhile, S&P Global has reported that Russia could seize EU-linked vessels in retaliation for the bloc's enforcement of sanctions against Russian oil trades. EU member states have agreed to a sanctions package granting each member the legal authority to confiscate Russian oil aboard sanctioned ships and sell the cargo.

"This amounts to nothing less than piracy and banditry," President Vladimir Putin said, according to S&P.

Crude oil prices declined as markets weighed the limited progress in talks to reopen the Strait of Hormuz, a critical transit route through which roughly a fifth of global daily oil consumption passes, alongside signs of rising oil flows.

Currency and Commodities

In foreign exchange markets, the Australian dollar is trading at US$0.705.

Key commodity movements:

• Iron Ore: down 0.04% to $95.05 per tonne
• Brent Crude: down 2.47% to $81.210 USD/Bbl
• Gold: $4,349.55 per ounce
• U.S. natural gas futures: down 2.52% to $2.7332 per USD/MMBtu

ASX Corporate Reporting

QBE Insurance Group reported a better-than-expected half-year result, with a return on equity (ROE) of 17.7 per cent, comfortably exceeding its medium-term outlook of 15 per cent or higher. Adjusted net profit after tax rose to $1,033 million, up from $997 million in the prior corresponding period.

The company's insurance operating result reached $691 million, representing an 8 per cent increase on the prior period. This was supported by premium growth and a stable combined operating ratio of 92.8 per cent, unchanged from the prior period. A combined operating ratio below 100 per cent indicates underwriting profitability, and QBE's consistency at this level reflects sustained premium-rate discipline across its underwriting portfolio.

Resources Sector Update

• Antares Metals (ASX:AM5): Maiden drilling has confirmed copper mineralisation at depth at the Conglomerate Creek project in Queensland.
• Cosmo Metals (ASX:CMO): A broad mineralised zone has been further identified at the Kanowna Gold Project in Western Australia.
• Capricorn Metals (ASX:CMM): Made a strategic acquisition of the Piastri project in Western Australia.
• Osmond Resources (ASX:OSM): Remains on target to complete a maiden Mineral Resource Estimate (MRE) for the Orion project in Spain.