ASX set to rise as Wall Street rallies in face of conflict; Oil prices tumble; Tesla surges
US stocks rallied, and the price of oil tumbled on hopes that Iran will not disrupt the global flow of crude, something that would hurt economies worldwide but also its own, following the United States' bunker-busting entry into its war with Israel.
The S&P 500 climbed 1 per cent, coming off a week where stock prices had jumped up and down on worries about the conflict potentially escalating. The Dow Jones added 374 points, or 0.9 per cent, and the Nasdaq composite gained 0.9 per cent.
The Australian sharemarket is set to advance, with futures at 6.09am AEST pointing to a gain of 62 points or 0.7 per cent, at the open. The ASX lost 0.4 per cent on Monday. The Australian dollar is 0.1 per cent higher at 64.56 US cents at 5.10am.
The price of oil initially jumped 6 per cent after trading began Sunday night, a signal of rising worries as investors got their first chance to react to the US bombings. But it quickly erased all those gains and swung to a sharp loss as the focus shifted from what the US military did to how Iran would react.
By late Monday, the price of a barrel of benchmark US oil had dropped 7.2 per cent to settle at $US68.51 after briefly topping $US78. That brought it nearly all the way back to where it was before the fighting began over a week ago, when it was sitting just above $US68.
Loading
The losses accelerated sharply after Iran announced a missile attack on Al Udeid Air Base in Qatar, which the US military uses. Iran said it matched the number of bombs dropped by the United States on Iranian nuclear sites this past weekend, which could be a signal of a desire to deescalate the conflict.
Perhaps most importantly for financial markets, Iran's retaliation did not seem to target the flow of oil. The fear throughout the Israel-Iran war has been that it could squeeze the world's supply of oil, which would pump up prices for it, gasoline and other products refined from crude.
Iran is a major producer of crude, and it could also try to block the Strait of Hormuz off its coast, through which 20 per cent of the world's daily oil needs passes on ships.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
33 minutes ago
- The Age
Virgin Australia shares take off, rising 7.9 per cent in ASX return
Virgin Australia saw its shares lift off and rise 7.9 per cent as the airline returned to the Australian sharemarket after more than four years' absence, luring investors with new management and a more streamlined business plan. The nation's second-largest airline traded at $3.13 as of 12.20pm AEST on Tuesday, shortly after the stock resumed trading on the ASX at midday. Virgin has sold $685 million worth of stock to fund managers and retail investors in an initial public offering this month, floating about 30.2 per cent of its shares on issue to trade on the local sharemarket. Investors had paid $2.90 for the stock in the IPO, implying a market capitalisation of $2.3 billion for the Brisbane-based airline. Virgin is trading under the sharemarket ticker VGN. Demand from investors had outstripped the number of shares on offer in the IPO, according to Virgin CEO Dave Emerson - which explains the rise in the share price after the stock started trading on the market. 'We were very pleased with the demand, and we definitely can say that the offer was oversubscribed,' Emerson said before the trading debut. Loading An overall positive market would've also boosted the stock, with the S&P/ASX 200 up 0.9 per cent after US President Donald Trump's announcement of a ceasefire between Israel and Iran. Some Iranian figures have since disputed Trump's account of events. Shares of Virgin's bigger rival Qantas Airways were also up strongly, gaining 3.4 per cent at lunchtime. Virgin had been delisted from the ASX in 2020 amid mounting debts and losses. Having entered administration, it was bought by US-based Bain Capital, the private equity firm Emerson worked for before joining Virgin's management in 2021.
Sydney Morning Herald
33 minutes ago
- Sydney Morning Herald
Virgin Australia shares take off, rising 7.9 per cent in ASX return
Virgin Australia saw its shares lift off and rise 7.9 per cent as the airline returned to the Australian sharemarket after more than four years' absence, luring investors with new management and a more streamlined business plan. The nation's second-largest airline traded at $3.13 as of 12.20pm AEST on Tuesday, shortly after the stock resumed trading on the ASX at midday. Virgin has sold $685 million worth of stock to fund managers and retail investors in an initial public offering this month, floating about 30.2 per cent of its shares on issue to trade on the local sharemarket. Investors had paid $2.90 for the stock in the IPO, implying a market capitalisation of $2.3 billion for the Brisbane-based airline. Virgin is trading under the sharemarket ticker VGN. Demand from investors had outstripped the number of shares on offer in the IPO, according to Virgin CEO Dave Emerson - which explains the rise in the share price after the stock started trading on the market. 'We were very pleased with the demand, and we definitely can say that the offer was oversubscribed,' Emerson said before the trading debut. Loading An overall positive market would've also boosted the stock, with the S&P/ASX 200 up 0.9 per cent after US President Donald Trump's announcement of a ceasefire between Israel and Iran. Some Iranian figures have since disputed Trump's account of events. Shares of Virgin's bigger rival Qantas Airways were also up strongly, gaining 3.4 per cent at lunchtime. Virgin had been delisted from the ASX in 2020 amid mounting debts and losses. Having entered administration, it was bought by US-based Bain Capital, the private equity firm Emerson worked for before joining Virgin's management in 2021.
Perth Now
38 minutes ago
- Perth Now
Housing, TAFE, arts budget boosts as state growth slows
THE FIGURES NSW state economy - $880 billion Growth in 2025/26 - 1.75 per cent (stable) Revenue - $124.2b (up 5.1 per cent) Expenses - $127.6b (up 3.0) Budget result - $3.4b deficit Gross debt - $178.8 billion Unemployment rate - 4.25 per cent (up from 4.0 per cent) BUDGET ANNOUNCEMENTS HOUSING * An Australian-first $1 billion pre-sale fund to help get 15,000 low- and medium-density homes off the ground * $145 million across four years for the state's Building Commission to hire more prosecutors, investigators and inspectors to weed out dodgy residential builds * $30.4 million crisis intervention package for homelessness services * Extension of build-to-rent tax concessions beyond slated 2039 end date COMMUNITIES * $1.2 billion on child protection, including substantial boost for foster carer allowances * $110 million to maintain public spaces, including the repair of heritage-listed Pyrmont Bridge and maintenance of fire trails * Commonwealth Veteran Card holders will receive free vehicle entry to all NSW National Parks * $25.8 million to support community sport * $6 million for animal rehoming organisations ARTS * Establishment of a $100 million fund to find a suitable location for a second major film studio in Sydney * $280.6 million in rebates for the screen and digital games sector * $40.6 million for 24-hour Commissioner and Sound NSW TRANSPORT: * $452 million to increase bus services, including 50 new "bendy" buses and more regular school bus services in outer Sydney and regional areas * Road upgrades and new signage around Western Sydney Airport and $250 million to finish the widening of Mona Vale Rd, a critical artery in north Sydney. * Major road upgrades in Dapto and Queanbeyan and repairs in flood-affected Hunter and Northern Rivers EDUCATION: * $9 billion across four years for public school infrastructure, largely focused on growing suburban communities * $3.4 billion towards TAFE and upskilling, including $40 million to enable 23,000 construction students to complete their apprenticeships for free HEALTH: * Another $700 million towards construction of the $2 billion Bankstown Hospital and relocation of Bankstown TAFE * A statewide pathology hub to be established at Westmead, with the $492 million investment to include an upgrade to a high-security lab researching dangerous pathogens such as Ebola and measles * $23 million to cut down the overdue surgery list by 3500 * $83 million to bolster maternity care ABORIGINAL AFFAIRS * $202 million for Closing the Gap projects, including $23 million towards community-led suicide prevention programs LAW AND ORDER: * $125.8 million for cybersecurity and hardware upgrades to NSW Police * $227 million across five years to help victims of violent crime access counselling * About $100 million to upgrade the state's busiest courthouse and employ more prosecutors, solicitors and witness assistance officers INNOVATION AND BUSINESS: * $80 million in innovation funding, including $38.5 million to boost technology hub TechCentral * A four-person Investment Delivery Authority to fast-track planning approvals for billion-dollar projects
