Australian shares are poised to open higher on Thursday, driven by a sudden de-escalation in geopolitical tensions after US President Donald Trump called off plans for further military strikes on Iran.
The reversal has triggered a broad rebound in global risk appetite, with investors quickly rotating out of safe-haven assets and back into equities.
The S&P 500 rallied approximately 1% in the session, providing additional tailwinds for Australian markets.
This development marks a significant shift from the heightened uncertainty that had weighed on markets in recent sessions.
The S&P/ASX 200 index is expected to continue its upward trajectory, buoyed by the improved sentiment and a strong finish for US technology stocks.
The S&P 500 rallied approximately 1% in the session, providing additional tailwinds for Australian markets.
The cancellation of the strikes removes a key overhang on global trade and energy supply chains, allowing investors to refocus on corporate earnings and macroeconomic data rather than geopolitical risk.