Australian equity markets are poised for a positive start to the new financial year, with investors targeting a rebound in energy stocks and rare earth miners that faced heavy selling pressure in June.
The shift in sentiment comes as traders look to capitalize on a rotation into sectors that were previously weighed down by geopolitical risk premiums.
Arafura Rare Earths, the mining company backed by billionaire Gina Rinehart, is among the names highlighted for potential upside.
The stock has been in focus amid broader trade tensions over critical minerals, including China’s recent decision to place US producer MP Materials on its export control list.
This development has underscored the strategic importance of non-Chinese rare earth supply chains, adding a layer of fundamental support to Australian producers.
The broader market context is supportive, with Australian equity futures pointing to a positive open for the S&P/ASX 200.