The Morning Catch-Up: ASX set to open flat after record Wall Street lead as geopolitical uncertainty lingers Proactive uses images sourced from Shutterstock
ASX 200 futures are pointing to a flat open near 9018 points following a record-setting session on Wall Street.
The S&P/ASX 200 Index closed up 7.9 points, or 0.1%, at 8978.70 — its highest level since early March, though well below the intraday high of 9015.40. The benchmark remains shy of the 9200.90 record reached on March 2.
Early gains were driven by optimism around renewed US–Iran negotiations, with reports suggesting a second round of talks could take place ahead of a ceasefire deadline next week. However, the rally lost momentum as weakness in banking stocks weighed on the index into the close.
UBS executive director of global markets Owen Johnston said market positioning was shifting as geopolitical risk evolves.
“As we get more news flow around an off-ramp to the conflict, the market is rotating out of defensive names into beta and cyclical exposure,” he said.
However, Johnston noted the late-session pullback suggested limited conviction, with flows appearing “piecemeal rather than decisive”.
US markets were mixed, with the S&P 500 closing at a fresh record high as investors balanced earnings optimism against geopolitical uncertainty.
The Dow Jones Industrial Average fell 0.2%, while the S&P 500 rose 0.8% and the Nasdaq gained 1.6%, supported by a continued rally in technology stocks.
The tech sector climbed 2%, offsetting broader weakness, with seven of the 11 S&P sectors ending lower. Materials led declines, falling 1.3%.
Financials were firmer, rising 0.8%, as major banks reported solid first-quarter earnings. Bank of America gained 1.6%, while Morgan Stanley jumped 4.3% after reporting profit growth.
Corporate activity also remained supportive, with Broadcom up 3.7% after extending a custom chip deal with Meta. Snap rose 7.5% on plans to cut around 1000 jobs, while Allbirds surged sharply after outlining a pivot toward AI infrastructure.
Banks signalled US consumers remain resilient, with dealmaking and IPO pipelines expected to stay active unless Middle East tensions escalate further.
European markets closed weaker as investors remained cautious amid ongoing Middle East developments and digested corporate earnings.
The pan-European FTSEurofirst 300 index fell 0.5%, with the UK’s FTSE 100 also down 0.5%.
Luxury stocks led the declines, dropping 2.5% and remaining the worst-performing sector year-to-date. Hermes slumped 8.2% after reporting weaker first-quarter sales linked to the Iran conflict, while Kering fell 9.2% as Gucci sales declined 8%.