Australian Shares Set to Rise as US Markets React to Trump’s Treasury Pick

Australian Market Update

Australian shares are expected to rise, following positive trends in the US market. ASX futures increased by 26 points or 0.3% around 7:10 AM AEDT, indicating the potential for a third consecutive record close for the Australian Stock Exchange (ASX).

US Market Overview

US stocks opened higher and then recovered after an initial dip. The Dow Jones rose by 1%, the S&P 500 increased by 0.3%, and the Nasdaq gained 0.1%. US Treasury yields decreased significantly, with the yield on the 10-year note falling by 13 basis points to 4.27%. This drop reflects confidence that Donald Trump’s Treasury secretary pick, Scott Bessent, will help manage the president-elect’s tax and tariff policies.

Commodity Movements

Iron ore prices rose by 2% to $US102.55 per tonne due to speculation of more support from Chinese authorities for their economy. In contrast, oil prices fell, with US crude below $US69 per barrel and Brent crude at $US73. Gold prices also declined, dropping more than 3% at the start of the week.

Global Developments

Reports suggest a potential ceasefire between Israel and Hezbollah that could last for 60 days. The Israeli cabinet is expected to discuss this deal in an upcoming meeting.

Stocks to Watch

• Brickworks and Ramsay Health Care will hold their annual general meetings.
• Newmont will begin ex-dividend trading.
• Webjet reported a drop in bookings after spinning off its Web Travel business earlier this year.
• ASX Ltd plans to complete its settlement system upgrade by 2029.