Australian equity futures are pointing to a positive open on Thursday, with the S&P/ASX 200 expected to rise by approximately 0.2% as the market enters the final week of the financial year.
Traders are betting that the seasonal influx of liquidity from end-of-financial-year (EOFY) tax-loss selling and portfolio rebalancing will outweigh lingering geopolitical anxieties.
The incident has kept shipping routes exposed and added a risk premium to crude prices, though the immediate impact on Australian equities appears muted by domestic seasonal flows.
The optimistic sentiment comes despite renewed volatility in energy markets.
Oil traders are bracing for further disruption after a container ship was reportedly hit in the Strait of Hormuz, raising fears of additional US military strikes in the region.
The incident has kept shipping routes exposed and added a risk premium to crude prices, though the immediate impact on Australian equities appears muted by domestic seasonal flows.
In the US, investor attention is also fixed on technology stocks.