Global shares climb, ASX set to open lower

Global sharemarkets ended the week on a positive note, with European equities extending their rally after Wall Street finished mixed ahead of the US Independence Day holiday.

US markets were closed on Friday, following Thursday’s session in which the Dow Jones Industrial Average reached another record high. European markets built on that momentum, with the pan-European Stoxx 600 rising 0.69% to a fresh 52-week high, marking its fourth consecutive weekly gain. Utilities led the advance as investors favoured more defensive sectors.

On Wall Street, the Dow climbed 594.83 points, or 1.14%, to a record close of 52,900.07 after softer-than-expected June jobs data strengthened expectations that the Federal Reserve could keep interest rates on hold. The S&P 500 finished little changed at 7,483.24, while the Nasdaq Composite fell 0.8% to 25,832.67.

Technology stocks remained under pressure as semiconductor shares extended their recent pullback. The VanEck Semiconductor ETF dropped 4.5%, with Teradyne falling 13.6% and KLA losing 11.5%. Nvidia declined 1.4%, while Micron Technology fell 5.5%, continuing a rotation out of AI-related stocks after their strong gains earlier this year.

Australian shares are expected to open lower after last week’s strong rally, with investors turning their attention to the Federal Reserve minutes and comments from policymakers for further guidance on global interest rates.

S&P/ASX 200 futures were down 0.2%.

The local market ended last week with a gain of almost 1%, led by gold miners after softer US jobs data reduced expectations of further US rate hikes.

It is expected to be a relatively quiet week for domestic economic data. Investors will instead focus on a speech from Reserve Bank of Australia Chief Economist Sarah Hunter on Wednesday, while globally the release of the Federal Reserve minutes is likely to be the key event for financial markets.