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Tuesday Morning Market Wrap
As of 8:30 AM AEST, the ASX 200 futures have dropped by 47 points, equating to a decline of 0.55%.
Key Highlights:
- The S&P 500 and Nasdaq experienced a downturn from their record highs following President Trump’s announcement of new tariff threats on major trading partners.
- Countries including Japan, South Korea, Malaysia, and Kazakhstan are set to face a 25% tariff on their exports to the US starting August 1.
- The Reserve Bank of Australia (RBA) is anticipated to announce a 25 basis points interest rate cut at 2:30 PM today.
Market Overview
On Tuesday, July 8, 2025:
| Major Indices Performance: | Index | Value | Change |
|---|---|---|---|
| S&P 500 | 6,230 | -0.79% | |
| Dow Jones | 44,406 | -0.94% | |
| NASDAQ | 20,413 | -0.92% | |
| Russell 2000 | 2,214 | -1.55% |
| Global Indices Update: | Country | Index Value | Change |
|---|---|---|---|
| Canada | 27,020 | -0.06% | |
| China | 3,473 | +0.02% | |
| Germany | 24,074 | +1.20% | |
| Hong Kong | 23,888 | -0.12% | |
| India | 83,443 | +0.01% | |
| Japan | 39,588 | -0.56% | |
| UK | 8,807 | -0.19% |
| Commodities Overview (USD): | Commodity | Price | Change |
|---|---|---|---|
| Gold | 3,343.45 | +0.25% | |
| Copper | 4.9664 | -1.02% | |
| WTI Oil | 67.92 | +2.12% |
Currency Update:
- AUD/USD: 0.6495 (+0.05%)
| Cryptocurrency Snapshot: | Currency | Value | Change |
|---|---|---|---|
| Bitcoin (USD) | 107,998 | -1.26% | |
| Ethereum (AUD) | 3,899 | -2.61% |
Overnight Summary:
- Major US stock indices ended lower, though they rebounded slightly from the day’s worst points.
- Trump has initiated new tariffs which may shake market confidence and influence trading strategies.
- The latest Bank of America Flow Show indicated that the Bull & Bear indicator hit a six-year high, indicating a surge in investments into high-yield and emerging market bonds along with robust market sentiments.
Stock Highlights:
- Tesla shares plunged after Elon Musk announced intentions to form a political party, escalating tensions with Trump.
- Apple initiated an appeal against a €500 million fine imposed by the EU regarding App Store practices.
- Mercedes-Benz reported a significant drop in Q2 vehicle sales, attributed to ongoing trade tensions.
- Amazon and Walmart engaged in competitive online sales events, intensifying the discount battle.
- Coreweave has decided to acquire Core Scientific to bolster AI infrastructure.
Central Banks:
- The Reserve Bank of Australia is poised for its first consecutive interest rate decrease in six years, with a majority predicting a cut to 3.60%.
Geopolitical Developments:
- President Trump has raised the stakes by issuing threats of increased tariffs on countries including Japan and South Korea.
- China has been actively securing nickel reserves to strengthen its position amidst the tariffs war.
Market Trends:
- Investors are likely to respond to tariff-related jitters today.
- Gold and silver have shown resilience, likely benefiting as safe-haven assets.
Brokerage Updates:
- Domino’s Pizza upgraded to ‘Buy’ status despite a target price reduction.
- Northern Star Resources had mixed updates from different brokerages concerning stock ratings.
Key Events to Watch Today:
- RBA’s interest rate decision and NAB Business Confidence figures are on the agenda.
Overall, today’s market reflects a complex interplay of economic data, currency fluctuations, and ongoing geopolitical tensions, particularly concerning tariffs which have significant implications for global trade dynamics.
