ASX Set to Open Higher as Oil Prices Fall, SPI Futures Point to 37-Point Gain
Key Takeaways
- •SPI futures indicate the ASX will open about 37 points higher at 9,024, helped by positive corporate reporting and lower oil prices.
- •Wall Street closed mixed overnight, with the S&P 500 and Nasdaq slipping on technology concerns while the Dow Jones held strong.
- •President Donald Trump threatened to raise Canada auto tariffs to 50%, heightening trade friction that affects deeply integrated North American vehicle supply chains.
- •Wood Mackenzie says Australia may benefit from Strait of Hormuz disruption, as energy capital redirects toward Asia-Pacific LNG projects where Australia is the largest producer and exporter.
- •Monadelphous reported record revenue of $2.98 billion, up 31.5 per cent, while Cedar Woods posted record NPAT of $65.6 million, up 36 per cent.
The Australian Securities Exchange is forecast to open on a positive note today, shrugging off a mixed session on Wall Street overnight, with sentiment buoyed by the ongoing run of positive corporate reporting and lower oil prices. SPI futures have suggested an increase of around 37 points, to 9,024. SPI futures, which are traded against the S&P/ASX 200 index, are commonly watched as an early guide to the direction of the local market at the open.
Overseas, Wall Street closed mixed overnight, with the S&P 500 and the Nasdaq slipping slightly lower on technology sector concerns while the Dow Jones Industrial Average held strong. Leading AI-linked and semiconductor shares dropped heavily. Markets were also closely monitoring escalating trade friction between the United States and Canada, with President Donald Trump threatening to hike Canada auto tariffs to 50%. The US and Canadian automotive industries run deeply integrated cross-border supply chains, with vehicles and parts often crossing the border several times during production, which is why tariff changes are a recurring focal point for North American vehicle makers.
Oil prices finally fell after two weeks of gains as investors took profits. Crude swings are closely watched on the ASX, where oil and gas producers form a significant part of the energy sector, while cheaper fuel lowers input costs for airlines, logistics and other fuel-intensive businesses.
Meanwhile, Australia may benefit from disruption to energy flows through the Strait of Hormuz, according to Wood Mackenzie. The Strait of Hormuz is a key shipping route for Middle East oil and gas exports and one of the world's most important energy chokepoints. The research firm said some Asian NOCs (national oil companies) and IOCs (international oil companies) are directing capital back to the Asia-Pacific region due to the Middle East crisis. Wood Mackenzie's regional experts have suggested Asia-Pacific LNG projects are being reassessed as more attractive. Australia is the APAC region's largest producer and exporter of LNG, frequently ranking alongside Qatar and the United States as one of the top global LNG exporters.
Corporate news
On the corporate news front, several ASX-listed companies announced results and exploration updates. The flow of company news comes during the August reporting season, when ASX companies on a June 30 financial year-end release their full-year results.
Engineering company Monadelphous Group (ASX: MND) has reported a record revenue of $2.98 billion, an increase of 31.5 per cent on the previous period.
Cedar Woods Properties (ASX: CWP) achieved a record NPAT of $65.6 million for the 2026 financial year, up 36 per cent on the prior year and slightly above guidance.
Corazon Mining (ASX: CZN) has unveiled a maiden exploration target at Two Pools.
Galilee Energy (ASX: GLL) has sidetracked the Zydeco well to unlock seven oil and gas targets.
Yandal Resources (ASX: YRL) has confirmed a new high-grade domain at the Arrakis gold discovery.
Currency and commodities
In forex, the Australian dollar is buying US$0.714.
In commodities, all in US dollars, iron ore, Australia's most valuable goods export and a key earnings driver for the country's major miners, was up 0.14 per cent to $95.34 in Singapore today, Brent crude was down 3.63 per cent to $90.966 per barrel, gold is selling at $4,652.00, and US natural gas futures were down 1.05 per cent to $2.7439 per gigajoule.
This report is based on HotCopper's Market Open, presented by Colin Sandell-Hay, and originally published by The Market Online Australia.
