Australian shares are expected to open with a mild pullback on Thursday, as US services sector data showed a contraction in May for the first time in nearly a year, driven by trade tensions and slower hiring, sparking recession concerns.

US President Donald Trump has doubled steel and aluminum tariffs to 50%, effective from Wednesday, citing national security concerns aimed at boosting import taxes to support American manufacturers.

Overnight, the S&P 500 and the Nasdaq Composite rose 0.01% and 0.3%, respectively, while the Dow Jones Industrial Average fell 0.2%.

In macroeconomy, the international trade in goods and monthly household spending indicators are due at 11:30 am Sydney time.

In corporate news, Star Entertainment Group (ASX:SGR) is facing a potential AU$400 million penalty after the Australian Transaction Reports and Analysis Centre accused it of facilitating billions in suspected money laundering through high-roller junket operations at its casinos, multiple media outlets reported Wednesday.

Spartan Resources (ASX:SPR) said the Supreme Court of Western Australia ordered that a meeting of its shareholders be held to decide on the company's proposed acquisition by Ramelius Resources (ASX:RMS) through a scheme of arrangement for AU$0.25 in cash and 0.6957 new Ramelius shares for each Spartan share, according to a Wednesday filing with the Australian bourse.

Australia's benchmark index rose 0.9% or 75.1 points, to close at 8,541.80 on Wednesday.