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Morning Market Wrap-Up – 29 July 2025
As of 8:30 AM AEST, the ASX 200 futures have declined by 60 points (-0.69%). Here’s a concise overview of the latest market movements:
Key Highlights:
- The S&P 500 and Nasdaq have reached new record highs.
- Overall market breadth was negative, despite the strength of large-cap stocks propelling the indices upwards.
- The anticipated EU trade agreement did not yield a significant rally, but stocks in the AI and semiconductor sectors continued to perform well.
Overnight Summary
Tuesday, 29 July 2025
Major Indices Performance:
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,390 | +0.02% |
| Dow Jones | 44,838 | -0.14% |
| NASDAQ Comp | 21,179 | +0.33% |
| Russell 2000 | 2,257 | -0.19% |
Commodities (USD):
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,312.15 | -0.76% |
| Copper | 5.6024 | -3.14% |
| WTI Oil | 66.98 | +2.80% |
Currency Overview:
| Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6524 | +0.02% |
Cryptocurrency Values:
| Cryptocurrency | Value (USD) | % Change |
|---|---|---|
| Bitcoin | 118,174 | -1.14% |
| Ethereum | 5,816 | -1.27% |
US Sector Performance
The following indicates sector performances as of this morning:
| Sector | % Change |
|---|---|
| Energy | +1.15% |
| Information Technology | +0.77% |
| Consumer Discretionary | +0.69% |
| Communication Services | -0.18% |
| Industrials | -0.29% |
| Financials | -0.67% |
| Health Care | -0.83% |
| Consumer Staples | -0.89% |
| Utilities | -1.05% |
| Materials | -1.44% |
| Real Estate | -1.75% |
Market Insights
- The S&P 500 and Nasdaq recorded gains, marking six consecutive days of increases. However, the breadth of market performance was disappointing as evidenced by the Equal-weight S&P 500, which fell significantly.
- Key elements influencing the market include headline volatility relating to US-EU trade discussions, extended tariffs between the US and China, a lacklustre five-year Treasury auction, and expectations surrounding upcoming earnings reports from major technology firms.
- Oppenheimer has revised its S&P 500 year-end target to 7,100, anticipating robust earnings and easing of trade tensions. Meanwhile, Wall Street braces for pivotal Federal Reserve meetings and significant tech earnings announcements.
Noteworthy Stock Movements
- Tesla has finalised a $16.5 billion semiconductor agreement with Samsung, reflecting strong commitments to AI chip production.
- Figma has raised its IPO price target as investor interest in technology stocks escalates.
- In contrast, Audi has downgraded its revenue forecast due to US tariffs and restructuring pressures, while Heineken sees positives in the new EU-US trade deal.
Central Bank Developments
- As the Fed meeting approaches, there are calls from the White House for interest rate cuts. The Fed is anticipated to maintain current rates, while the ECB signals a reluctance to cut rates in the immediate future unless there is significant economic deterioration.
Trade Insights
- A new trade agreement between the US and EU has been established to avert escalated tariffs.
- The French government expresses discontent regarding the deal, urging the EU to consider retaliatory tariffs.
- Discussions continue surrounding a potential US-China trade deal, amid ongoing high-level talks and executive visits to China.
Australian Market Outlook
For today, the ASX market anticipates further pullbacks with indications of weak market breadth. A series of company announcements are likely ahead of the fiscal year-end results.
Economic Calendar
Currently, there are no major economic reports scheduled for release.
This summary provides a comprehensive overview of market performance and key developments, assisting investors in navigating today’s financial landscape.
