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Australian shares set to open higher following US-Iran deal
Australian shares are set to open higher after Donald Trump said a US-Iran deal was complete, boosting investor confidence. ASX futures gained 39 points following strong performances on Wall Street and European markets. Falling oil prices and plans to reopen the Strait of Hormuz are also drawing attention as investors assess the impact on the ASX 200 and Australian energy stocks.
Key Highlights
- ASX futures are up 39 points to 8,853 in the lead-up to Monday.
- All major US indices closed higher on Wall Street, with three of them posting gains on Friday.
- After an upbeat Nasdaq-listed debut, with shares up nearly 20%, SpaceX lifted investor sentiment.
- Oil’s price dropped as hopes mounted for the reopening of the Strait of Hormuz.
- Investors are also anticipating next week's Federal Reserve meeting.
Australian Shares Start Higher on US-Iran Deal
Australian shares are tipped to start the week on a higher note after US President Donald Trump said a complete deal between the United States and Iran was done. ASX futures rose 39 points to 8,853, indicating a positive start for the ASX 200 today as investors look for any sign that tensions in the Middle East are easing.
ASX 200 Today, Australian market follows world higher
Optimism over a US-Iran peace deal and SpaceX's long-awaited market debut propelled Wall Street sharply higher on Friday.
Both West Texas Intermediate and Brent fell as markets digested reports that a temporary deal may allow the Strait of Hormuz, an important global energy transit route, to reopen.
Brent crude lost 2.28% to US$82.94 a barrel, and US West Texas Intermediate decreased 3.37%. Local investors will be watching the potential impact of oil prices on ASX energy stocks, particularly Santos and Woodside shares.
ASX Outlook and What Investors are Focusing on Strait of Hormuz
On Sunday, Trump claimed that a deal with Iran had been reached and said the Strait of Hormuz would be opened again as well as the US naval blockade removed.
Investors have also shifted focus to next week's US Federal Reserve meeting, with markets looking for signals on interest rates. Commonwealth Bank will release its household spending insights for May after the bell, providing new insight into how Aussie consumers are spending.
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