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ASX Morning Update: Snapshot of Overnight Market Activity
As of 8:30 AM AEST, ASX 200 futures have seen a positive start, climbing by 40 points or 0.46%. Here’s a brief overview of the overnight developments across global markets.
Market Summary
- S&P 500 reached another all-time high.
- NASDAQ experienced a decline, breaking a six-day winning streak, primarily due to a sell-off in tech stocks.
- Investors showed a preference for value sectors, particularly in Healthcare, Real Estate, and Utilities.
Key Financial Metrics
Major Indices
| Index | Value | Change |
|---|---|---|
| S&P 500 | 6,310 | +0.06% |
| Dow Jones | 44,502 | +0.40% |
| NASDAQ Comp | 20,893 | -0.39% |
| Russell 2000 | 2,249 | +0.79% |
Country Indices
| Country | Value | Change |
|---|---|---|
| Canada | 27,364 | +0.17% |
| China | 3,582 | +0.62% |
| Germany | 24,042 | -1.09% |
| Hong Kong | 25,130 | +0.54% |
| India | 82,187 | -0.02% |
| Japan | 39,775 | -0.11% |
| United Kingdom | 9,024 | +0.12% |
Commodity Insights
Prices (USD)
- Gold: $3,430.14 (+0.92%)
- Copper: $5.732 (+2.40%)
- WTI Oil: $65.45 (-0.66%)
Currency Rate
- AUD/USD: 0.6552 (+0.00%)
Cryptocurrency Market
- Bitcoin: $119,716 (+2.10%)
- Ethereum: $5,677 (-0.93%)
Key Market Drivers
US Sector Performance
The equity market saw a move from growth towards value investing, with sectors such as Healthcare (+1.90%), Real Estate (+1.78%), and Utilities (+1.29%) performing well. In contrast, Information Technology fell by 1.08%, reflecting the shifting investor sentiment.
Central Bank Comments
Recent commentary from Treasury Secretary Bessent indicated no need for Federal Reserve Chair Powell to step down, amidst critiques from former President Trump.
Trade and Tariffs
There is speculation about extending trade deadlines with China, as the U.S. grapples with ongoing tariff implications. Recent announcements included trade deals with the Philippines and rising copper shipments as tariffs come into play.
Market Trends to Watch
- Value Sectors: Local markets may experience similar trends observed overnight, with increased investor interest in value sectors.
- Lithium: The rise in lithium carbonate prices and shifts in trader behaviours in related stocks is noteworthy.
- Gold and Copper Miners: Continued gains in gold and copper prices are expected to positively influence local mining stock performance.
ASX Highlights and Upcoming Events
- Amotiv has provided guidance for FY25 EBITDA around $192 million.
- Perpetual’s wealth management unit is projected to draw bids between $450-550 million.
- Telix reported Q2 revenues slightly below consensus and reaffirmed its guidance.
Key Economic Releases Today (AEST)
- 9:00 AM: Australia Manufacturing and Services PMI (July)
- 5:30 PM: Germany and UK Manufacturing and Services PMI (July)
- 10:15 PM: ECB Interest Rate Decision
- 11:45 PM: US Manufacturing and Services PMI (July)
Broker Movements
- Greatland Resources upgraded to Buy (Citi).
- Insurance Australia Group upgraded to Buy and its target increased.
- Meteoric Resources downgraded to Hold with a lower target price.
In conclusion, the ASX appears to be poised for a robust session following positive cues from international markets, particularly in value sectors and commodities. Investors should remain vigilant regarding economic indicators and geopolitical developments impacting market dynamics.
