Australian markets set to open higher as Wall Street rotation weighs on tech and the Australian dollar slides

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Australian markets set to open higher

Highlights

Australian equities set to open higher after Wall Street gains, while the Australian dollar fell 1.1 percent to its lowest since July following weak jobs data.
BHP initiates $8.6 million legal action against the Spence copper mine workers' union in Chile over alleged illegal work stoppages during June and July.
The International Energy Agency will release over 20 million barrels of diesel after record price surges, as markets face supply disruptions from Middle East and Russia-Ukraine conflicts.

Market moves and currency pressure

As reported by ABC News, Australian equities are expected to open higher after Wall Street ended its session in positive territory, despite a rotation out of major technology and AI stocks.

The Australian dollar fell as much as 1.1 per cent overnight to its lowest level since early July before recovering some ground. The move follows weaker-than-expected jobs figures, with unemployment rising to 4.7 per cent in September, its highest level in five years, prompting markets to scale back expectations of a Reserve Bank rate hike on Melbourne Cup day.

Corporate and energy market pressures

BHP has launched legal action against a workers' union at its Spence copper mine in Chile, seeking about $8.6 million in compensation. The miner alleges two work stoppages in June and July were illegal because they took place outside scheduled contract negotiations and caused significant disruption to operations, while the union had been pushing for a special bonus of about $5,100 per worker.

In energy markets, the International Energy Agency agrees on Thursday to release more than 20 million barrels of diesel to the market as quickly as possible, along with any oil remaining from the record emergency reserves release pledged in March. Diesel prices have surged to record highs across many markets because of supply disruptions linked to the war in the Middle East and the Russia-Ukraine conflict, while U.S. President Donald Trump has pressed European Union countries to draw down reserves or face a potential U.S. diesel export ban ahead of the November 3 midterm elections.

In our earlier article on the surge in oil shipping costs, we explained how conflict-related risks around key routes such as the Strait of Hormuz and the Red Sea pushed tanker and insurance rates sharply higher, making freight a much larger share of the delivered oil price. We also noted that these higher transport costs can feed through from crude and refined products into broader consumer inflation, while unevenly affecting import-dependent countries, refiners, and tanker owners.

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