US sharemarkets finished mixed as investors rotated out of mega-cap technology and into more traditional sectors. The Dow rose 270 points, or 0.55%, while the Nasdaq fell 0.44% and the S&P 500 was effectively flat. The selling was concentrated in technology, with the sector down more than 1%, signalling a shift in market leadership rather than a broader risk-off move.
Large tech and AI-linked stocks led the declines, including Nvidia, Oracle and Apple, while memory-chip names were hit harder still. In contrast, defence stocks rallied after President Donald Trump called for a sharply higher US defence budget in 2027, and oil prices rebounded around 3% following the prior session’s Venezuela-driven sell-off. Australian shares are set to open higher, with SPI futures pointing to a 0.5% gain ahead of China inflation data and the US non-farm payrolls report.
Rio Tinto (ASX:RIO) — preliminary talks with Glencore on possible merger
Rio Tinto has confirmed it is in preliminary discussions with Glencore regarding a potential combination of some or all of their businesses, which could include an all-share merger implemented via a court-approved scheme of arrangement. The company stressed there is no certainty that an offer will be made, nor any indication of terms, and emphasised that this is not a firm intention to make an offer under UK takeover rules. Under the UK Takeover Code, Rio Tinto has until 5 February 2026 to either announce a firm offer or walk away, unless the deadline is extended by the Takeover Panel.
Codan (ASX:CDA) — strong first-half FY26 trading update
Codan expects first-half FY26 revenue of about $394m, up 29% on the prior corresponding period, with underlying net profit after tax expected to be at least $70m, up roughly 52%. Growth was driven by strong demand in the metal detection business — particularly gold detectors in Africa — and continued solid performance in communications, which grew in line with management’s stated targets. The update is unaudited but signals a materially stronger earnings trajectory ahead of the company’s formal half-year results in February.
WA1 Resources (ASX:WA1) — high-grade niobium drilling extends Luni mineralisation
WA1 Resources reported further high-grade niobium drill results from its 100%-owned Luni Niobium Project, including multiple thick, high-grade infill intersections and extensions beyond the current mineral resource estimate envelope. Drilling in 2025 totalled 35,000m, with results supporting continuity of high-grade zones and extending mineralisation more than 400m to the east of the existing resource. The company said the data will feed into an updated mineral resource estimate planned for 2026, while site activities have resumed to support development studies, permitting and approvals.
