The Australian sharemarket is poised to rally in line with gains on Wall Street after Iran’s missile attacks on two US bases in the Middle East eased concerned about a more aggressive response from the Islamic republic. Oil dropped nearly 9 per cent.
Oil is expected to continue its decline after President Donald Trump posted on social media after the close of US trading that there would be a ceasefire between Israel and Iran. Trump said the ceasefire would begin in about six hours and then the war would be “considered ended”.
Futures for the ASX were up 62 points, or 0.7 per cent by the close of US trading as investors piled back into the US sharemarket but the rally is expected to gather steam. The S&P 500 climbed 1 per cent while the tech-heavy Nasdaq gained 0.9 per cent.
US crude oil briefly tumbled $US68 a barrel after the missile attacks on US bases in Qatar and Iraq suggested that Iran’s ability to widen the war may be limited. For Israel’s part, it has hit more targets in Tehran including the gates to Evin Prison, the primary facility where Iran holds political dissidents.
“History suggests most geopolitically led sell-offs are short-lived [and] modest,” Morgan Stanley strategists led by Michael Wilson wrote in a note. “Oil prices will determine whether volatility persists.”
Source: https://www.afr.com/markets/equity-markets/asx-to-rise-wall-st-gains-oil-drops-20250624-p5m9qi