Tuesday Morning Financial Wrap-Up
ASX 200 Futures: Declining Trends
As of 8:30 am AEST, ASX 200 futures fell by 13 points or 0.14%. The markets are observing a cautious atmosphere ahead of an anticipated inflation report, which is expected to have significant implications for monetary policy moving forward.
Key Overnight Observations:
- Major US stock indices experienced some volatility, initially surging before settling at minor gains.
- The trading night was relatively subdued as investors awaited critical economic data.
- The earnings season is building momentum, with reports expected from notable companies such as SGH, Seven West Media, and Life360.
Market Summary (As at Tuesday, August 12, 2025)
| Major Indices | Value | % Change |
|---|---|---|
| S&P 500 | 6,373 | -0.25% |
| Dow Jones | 43,975 | -0.45% |
| NASDAQ Comp | 21,385 | -0.30% |
| Russell 2000 | 2,217 | -0.09% |
Country Indices:
- Canada: 27,775 (+0.06%)
- China: 3,648 (+0.34%)
- Germany: 24,081 (-0.34%)
- Hong Kong: 24,907 (+0.19%)
- India: 80,604 (+0.93%)
- Japan: 41,820 (+1.85%)
- UK: 9,130 (+0.37%)
Commodity Prices (in USD):
- Gold: 3,344.95 (-1.59%)
- Copper: 4.4319 (-0.70%)
- WTI Oil: 64.00 (+0.26%)
Currency Rates:
- AUD/USD: 0.6513
Cryptocurrency Valuations:
- Bitcoin (USD): 118,615 (-0.09%)
- Ethereum (AUD): 6,470 (-0.10%)
US Market Dynamics:
In the US market, benchmarks faded early gains, closing near session lows. Notably, gold fell sharply after President Trump confirmed that the metal would not face tariffs, alleviating pressure on its price.
Earnings and Market Trends:
- A recent Bank of America survey revealed a record number of fund managers perceiving US equities as overvalued while viewing emerging markets as undervalued.
- Corporations are gearing up for record stock repurchases in 2025, particularly within the technology and banking sectors, supported by stronger-than-anticipated Q2 earnings.
Key Developments:
- Ford announced a $2 billion investment in Kentucky focused on producing affordable electric vehicles.
- Paramount secured a $7.7 billion agreement to become the exclusive US broadcaster for the Ultimate Fighting Championship.
- The lithium sector surged following news of CATL halting operations at a Chinese mine, boosting investor confidence.
Central Banks Outlook:
The Federal Reserve maintains a hawkish stance, with Vice Chair Bowman projecting three rate cuts by year-end. Meanwhile, the Reserve Bank of Australia is expected to announce a rate cut today at 2:30 pm AEST.
Economic Indicators:
- China’s Consumer Price Index indicates decreasing inflation amid weak demand and trade uncertainties.
- UK manufacturing confidence has surged, prompted by improved tariff agreements with the US.
ASX Highlights for Today:
- Noteworthy announcements from Life360 include appointing COO Lauren Antonoff as CEO while co-founder Chris Hulls transitions to Executive Chairman.
- Seven West Media reported a FY25 NPAT of $57 million, slightly beating estimates, and aims for earnings above $161 million for FY26.
- Southern Cross Electrical Engineering has secured contracts exceeding $110 million.
Upcoming Events:
- Focus will shift to the RBA’s interest rate decision and US inflation data.
- The reporting period continues, with significant insights expected from major companies.
Conclusion:
Today’s financial landscape reflects cautious optimism with major indices fluctuating and critical economic indicators on the horizon. The market’s dynamics are likely to remain influenced by earnings reports and central bank decisions, both of which could lead to increased volatility. Investors should stay tuned for real-time updates as the day unfolds.
Key Economic Calendar (AEST):
- 11:30 am: NAB Business Confidence (July)
- 2:30 pm: RBA Interest Rate Decision (Expected 25 bp cut to 3.60%)
- 10:30 pm: US Inflation (July)
