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Friday Morning Market Wrap Up: August 1, 2025
ASX Outlook:
As of 8:30 AM AEST, ASX 200 futures are down by 64 points, equating to a drop of 0.74%.
Key Highlights:
- US Market Performance: Major US indices opened strongly but closed lower, unable to maintain their initial gains.
- Earnings Report: Meta and Microsoft reported solid earnings but could not mitigate widespread tech sector losses.
- Figma’s Stock Debut: The design platform saw its shares close at $115, significantly surpassing its IPO price of $33.
Overnight Market Summary
Market Close (AEST):
- S&P 500: 6,339 (-0.37%)
- Dow Jones: 44,131 (-0.74%)
- NASDAQ Composite: 21,122 (-0.03%)
- Russell 2000: 2,212 (-0.93%)
International Indices:
- Canada: 27,260 (-0.40%)
- China: 3,573 (-1.18%)
- Germany: 24,065 (-0.81%)
- Hong Kong: 24,773 (-1.60%)
- India: 81,186 (-0.36%)
- Japan: 41,070 (+1.02%)
- UK: 9,133 (-0.05%)
Commodity Prices (in USD):
- Gold: 3,291.15 (+0.50%)
- Copper: 4.4081 (-4.45%)
- WTI Oil: 69.36 (-0.83%)
Currency:
- AUD/USD: 0.6423 (-0.04%)
Cryptocurrency:
- Bitcoin (USD): 116,357 (-0.81%)
- Ethereum (AUD): 5,794 (-1.13%)
US Sector Performance
Change in Sector Performance:
- Communications Services: +2.08%
- Utilities: +0.59%
- Energy: -0.60%
- Financials: -0.62%
- Health Care: -2.79%
Market Analysis
US Market Dynamics:
- US stocks began positively but the S&P 500 and NASDAQ ended with marginal losses after initially spiking over 1%.
- Despite strong earnings from companies like Meta (+11.2%) and Microsoft (+3.9%), broader tech sector weaknesses, including losses from Tesla (-3.3%) and Alphabet (-2.3%), dampened enthusiasm.
Key Earnings Reports:
- Meta and Microsoft pleased investors with promising guidance, attributed to growing demand for AI-driven advertising.
- Conversely, companies like Qualcomm suffered a notable share decline due to concerns over potential Apple contracts.
Figma’s Debut:
Figma’s NYSE debut saw shares soar to $115, highlighting investor enthusiasm in the tech space despite overall cautious sentiment.
Economic Update
- The US Core PCE Price Index rose 0.3% month-on-month, pointing to inflation pressures.
- China’s manufacturing PMI unexpectedly softened, suggesting a slowdown amid export difficulties.
- Taiwan’s robust GDP growth was bolstered by booming exports, reflecting growing global AI demand.
ASX Expectations for Today
What’s Ahead in the ASX:
- Despite recent share declines, local firms like Beach Energy are eyeing acquisitions.
- Market participants await extensive economic updates, including Australia’s Q2 Producer Price Index and China’s manufacturing data.
Dividends and Corporate Actions:
- Notable dividend payments include Pengana Global Private Credit Trust and La Trobe Private Credit Fund.
- Earnings announcements today will include ResMed reporting significant quarterly growth.
Market Sentiment:
The ASX has shown resilience against declines in the broader indexes, but future movements may be affected by trade negotiations and overarching economic conditions.
Conclusion
As markets digest recent performances and prepare for upcoming economic data, investors should remain alert to potential volatility caused by evolving geopolitical dynamics and economic shifts. The local market’s ability to sustain its footing amidst these challenges remains to be seen.
