Stocks
ASX Set to Rise Tuesday as Wall Street Hits Fresh Record
Australian shares are set to open higher on Tuesday after the S&P 500 hit a fresh record close overnight, driven by chipmakers. The ASX 200 fell 0.49 per cent Monday to 8,701.80, with CSL the biggest loser after its historic 15.96 per cent collapse. Oil rose again overnight on fresh US-Iran peace talk setbacks. The federal budget lands this week with capital gains tax and negative gearing changes expected. Property investors, landlords, and anyone holding investment assets should watch budget night closely for the confirmed detail on what changes and when they apply.
Australian shares are set for a higher Tuesday open after Wall Street made fresh record pushes overnight. The next few days are huge for Aussie investors.
Key Highlights
- S&P 500 hit another closing high as the chipmaker rally lifts the Nasdaq.
- The ASX 200 lost ground on Monday, sinking 42.60 points or 0.49% to finish at 8,701.80.
- Oil prices climbed overnight after fresh setbacks in US-Iran peace talks.
- Melbourne-based commentators assume that this week's Federal budget will focus on dramatic changes to capital gains tax and negative gearing.
ASX Set to Open Higher After S&P 500 Near Record Overnight
Australian shares are poised to climb at Tuesday’s open after Wall Street crept into record territory overnight. The S&P 500 hit another closing peak guided by a chipmaker rally, even as the bulk of stocks in the broad index actually finished negative for the day. Local performance on Monday was a different story, with the ASX 200 dropping 42.60 points or 0.49 per cent to 8,701.80, very sharply lower off resources heavyweight CSL after the healthcare giant’s historic 15.96 per cent dump which dramatically reduced forecasts by $5 billion in fresh write-downs this year and also flagging recurring losses
Overnight, Oil Rose After Iran Talks Fall at Another Roadblock
Oil prices rose overnight amid another false start on the road to peace in the US-Iran war, keeping concerns over the Strait of Hormuz and fuel costs front and centre for investors. The fragile truce is still cracking, with every hint of renewed tensions lifting crude more, straining households’ stretched budgets further and ensuring the RBA’s inflation woes remain front of mind ahead of next week’s meeting.
What Analysts and Investors are Monitoring
The biggest event on Australian investors' radar this week is the federal budget. Writing in the Australian Financial Review, they said the government would not apply a 50% capital gains tax discount or negative gearing on investments in existing property, with a one-year grace period before the full changes take effect from July 2027. Budget night is a critical test for property investors, landlords and anyone with an investment.
Later This Week: What to Keep an Eye On
Three things will move Australian markets this week: the federal budget, US-Iran oil prices, and Monday’s CSL crash on free looks for deals. Confirmation of a capital gains tax and a negative gearing overhaul could all skew against property-related shares and real estate investment trusts. Any ramp-up in the Middle East would propel oil upward and reinflate inflationary pressures. And with the RBA currently at 4.35 per cent and markets expecting more hikes, the government could move quickly to alter rate expectations if the budget surprise is great enough on spending.
FAQs
- Is the ASX rising or climbing today?
ASX is poised to open higher, following Wall Street’s overnight bounce after the S&P 500 set a fresh record close.
- Why is oil rising again?
Back off US-Iran peace talks overnight have kept supply fears in the Strait of Hormuz alive.
- What are the key budget revisions that investors are monitoring?
Confirmed: 50% CGT discount repeal and negative gearing changes, both expected this week.
Follow Inspirepreneur Magazine for daily global business news.