Market outlook

The Australian share market is set to open lower on Thursday, following a mixed session on Wall Street where technology and artificial intelligence stocks weighed on the Nasdaq Composite.

ASX futures pointed to a decline of 0.6% to 8,706 points, according to ABC Australia reporting. The Australian dollar was slightly weaker, trading at 69.26 US cents.

Overnight, US markets finished mixed, with the Dow Jones down 1.1%, the S&P 500 off 0.3%, and the Nasdaq Composite slipping 0.1%, as reported by ABC Australia's market snapshot.

European markets also closed lower, with the FTSE down 0.7%, the Stoxx 600 off 0.3%, and Germany's DAX falling 2.2%.

Oil prices surge on Middle East tensions

Oil prices have surged, with Brent crude rising 6.4% to US$76.56 a barrel, after the US confirmed it launched strikes on Iran. The move follows attacks on three commercial ships near the Strait of Hormuz, ABC Australia reported.

In its coverage of the day's trading, ABC Australia also noted that oil prices were hovering near a one-month high as hopes for US-Iran negotiations were offset by threats from Yemen's Houthis to impose a naval blockade on Saudi Arabia. Brent futures were up 1% to US$88.97 a barrel in earlier trading, with WTI up 0.7% to US$83.06.

Key market figures

ABC Australia's market snapshot for Thursday morning showed:

  • ASX 200 futures: -0.6% to 8,706 points
  • Australian dollar: -0.03% to 69.26 US cents
  • Wall Street: Dow Jones (-1.1%), S&P 500 (-0.3%), Nasdaq Composite (-0.1%)
  • European markets: FTSE (-0.7%), Stoxx 600 (-0.3%), DAX (-2.2%)
  • Spot gold: -0.7% to US$4,076 an ounce
  • Brent crude: +6.4% to US$79.40 a barrel
  • Iron ore: +1.4% to US$99.25 a tonne
  • Bitcoin: +0.02% to US$63,758
Prices were current around 7:30am AEST.

Telstra outage ongoing

A Telstra network outage that disrupted services on Wednesday continues to affect customers, ABC Australia reported. Public transport in Canberra, regional NSW and regional Victoria has been impacted, and customers of mobile providers operating on Telstra's network, including Boost, Aldi, Tangerine, and Belong, have reported issues.

According to Telstra's website, the company said the issue that caused the outage had been restored, but a secondary problem was still affecting some services as of 6:30am Thursday.

"While we've restored the issue that caused today's outage, we are still working on a secondary issue impacting some calls including Triple Zero," Telstra said in a statement. In such cases, callers receive an error message and their phone will attempt to connect via an alternative network.

Taxis and other payment systems have also been disrupted, with customers of mobile providers operating on Telstra's network — including Boost, Aldi, Tangerine, Belong and Everyday Mobile — reporting outages, ABC Australia reported.

US-Iran tensions escalate

Oil prices have risen sharply after US President Donald Trump declared the ceasefire with Iran was over and launched another wave of strikes on the country, according to ABC Australia. The strikes follow attacks on three commercial ships near the Strait of Hormuz.

In a separate ABC Australia report from earlier in the week, oil prices were noted as remaining near a one-month high amid expectations of renewed US-Iran negotiations, tempered by threats from Yemen's Houthis to impose a blockade on Saudi Arabia.

AI stocks under pressure

The tech-heavy Nasdaq Composite fell 0.1% on Wall Street, pressured by a sell-off in technology and AI-related stocks, ABC Australia reported. The decline comes ahead of earnings reports from major US tech companies, including Alphabet, Tesla and Intel, due later this week.

In Australia, investors are also watching developments in the AI sector after Chinese startup Moonshot released a new model, the Kimi K3, which reportedly rivals or outperforms flagship models from Anthropic and OpenAI at a significantly lower cost. According to ABC Australia, the new model could spark a price war in AI services and threaten the valuation of US tech giants that have invested heavily in AI development. Moonshot is expected to release an even larger version of its platform next week.

Telstra outage affects transport and payments

Separately, a widespread Telstra network outage has disrupted services for customers across several providers, ABC Australia reported. Public transport in Canberra, regional NSW and regional Victoria has been affected, and taxi passengers have reported being unable to complete payments.

Customers of Telstra-owned brands including Boost, Aldi, Tangerine and Belong, as well as Everyday Mobile, have also reported outages. Telstra said the issue was "almost resolved" as of 6:30am, but a secondary problem was still being addressed, with some calls to Triple Zero affected. The telco said calls to emergency services would be redirected to alternative networks.

Key figures

In early trading indicators, ASX futures were down 0.6% to 8,706 points, the Australian dollar was at 69.26 US cents, and Brent crude was up 6.4% to US$79.40 a barrel. Gold fell 0.7% to US$4,076 an ounce. The Dow Jones was down 1.1%, the S&P 500 off 0.3% and the Nasdaq Composite down 0.1% on Wall Street.