The Australian Securities Exchange (ASX) has continued its run up in early trade today (2 May) after US equities markets were buoyed overnight by solid tech earnings and less of a slowdown in US manufacturing than expected.
The S&P/ASX200 rose 30.7 points, or 0.38%, to 8,176.3 points by 10.30am (AEST).
The index has rallied 2.61% over the past week and continues to reset its recent highs.
However, more sectors were lower than higher. Industrials fell 0.47%, materials slid 0.34% and utilities edged back 0.05%. The financial sector was the top performing in early trade advanced 0.13% and energy was up 0.05%.
Commodities, meanwhile, headed into the end of the week on a more positive note.
The headline ANZ China Commodity Index lifted 0.2%, buoyed by rises in industrial metals and energy.
Crude oil prices found their way back up on concerns around further sanctions on Iran that could tighten the supply pipeline.
Mahjabeen Zaman, head of FX Research at ANZ, says this follows threats by US President Donald Trump that any country buying oil or petrochemicals from Iran will be subject to secondary sanctions.
“This ratcheted up pressure on Tehran as nuclear talks with Washington hit a snag. Russian supply is also on the radar of US officials,” she says.
“Senator Lindsey Graham said he had the commitment of 72 colleagues for a bill that would enact ‘bone crushing’ sanctions on Russia and tariffs on countries taking its oil, if Putin didn’t engage in serious talks to end the war in Ukraine.”
Copper also received a boost on signs of progress between the US and its trading partners on potential trade deals.
Additionally, supply was impacted by community protests at two major copper mines in Peru – BHP (ASX:BHP) and Glencore’s (LSE:GLEN) Antamina and MMG’s (HKG:1208) Las Bambas.
“National Economic Council Director, Kevin Hassett, said the Trump administration is making progress in tariff talks and expects news within days. Supply side issues also provided some support,” Zaman says.
Copper futures steadied at just under US$4.60 a pound early (AEST) this morning (2 May).
Capstone Copper (ASX:CSC) was an early advancer after announcing record sulphide copper production from its Mantoverde and Mantos Blancos which resulted in record revenues and earnings before interest, taxes, depreciation and amortisation (EBITDA) for the March quarter.
Quarterly consolidated total copper production reached 53,796 tonnes, while sulphide copper production was 45,950 tonnes — up from 30,841 tonnes in the March quarter of 2024.
Record adjusted EBITDA more than doubled to $179.9 million for the quarter, up from $80.1 million in the same quarter of 2024, primarily due to increased sulphide copper production and a higher realised copper price.
Capstone’s share price lifted 2.29% to $7.81 on the news.
Uranium miner Boss Energy (ASX:BOE) was also again among the top movers, adding a further 4.12% to trade at $3.54. Pilbara Minerals (ASX:PLS), however, slid 2.91% to $1.42.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
