ASX Set for Volatile Start Amid Ongoing Iran Tensions
The Australian sharemarket is expected to start the week under pressure due to ongoing tensions in the Middle East. ASX 200 futures on Saturday pointed to a fall of 85 points, or 1%, but this may not be as negative after US President Donald Trump delayed further strikes on Iran.
Trump's announcement that he had cancelled further attacks on Iran to allow time for negotiations may ease supply concerns when markets reopen. This development may also ease some of the geopolitical concerns that have driven oil prices sharply higher and weighed on global risk sentiment.
The Australian sharemarket finished slightly higher on Friday as strong gains across the mining sector offset weakness in financial and technology stocks. Materials stocks led the advance, with BHP gaining 2% and Rio Tinto rising 1.3%, while Fortescue fell 1.9% after flagging a US$525 million impairment charge associated with its Iron Bridge project.
The Dow Jones Industrial Average closed 0.5% higher on Friday, driven by Amazon's strong quarterly result, which revived confidence in artificial intelligence-related stocks. Microsoft also gained another 3%, while Apple fell more than 7% after warning that component shortages would constrain growth.