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Table of Contents
Thursday Morning Wrap: Market Insights
ASX 200 futures are up 31 points (+0.35%) as of 8:30 am AEST.
Overview
- Record Highs: The S&P 500 and the Nasdaq reached new all-time highs.
- Market Strength: Positive movement in small caps and a shift toward defensives/value stocks was evident.
- Earnings Day: A significant day lies ahead with several high-profile companies reporting.
Overnight Summary
Date: Thu 14 Aug 25, 8:22 am AEST
Major Indices Performance
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,467 | +0.32% |
| Dow Jones | 44,922 | +1.04% |
| NASDAQ Comp | 21,713 | +0.14% |
| Russell 2000 | 2,328 | +1.98% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 27,993 | +0.26% |
| China | 3,683 | +0.48% |
| Germany | 24,186 | +0.67% |
| Hong Kong | 25,614 | +2.58% |
| India | 80,540 | +0.38% |
| Japan | 43,275 | +1.30% |
| United Kingdom | 9,165 | +0.19% |
Commodities Performance (USD)
| Commodity | Price | % Change |
|---|---|---|
| Gold | 3,356.98 | +0.27% |
| Copper | 4.4834 | -0.08% |
| WTI Oil | 62.74 | -0.69% |
Currency Performance
| Currency | Value | % Change |
|---|---|---|
| AUD/USD | 0.6544 | -0.02% |
Cryptocurrency Performance
| Cryptocurrency | Price (USD) | % Change |
|---|---|---|
| Bitcoin | 122,796 | +2.51% |
| Ethereum (AUD) | 7,210 | +3.18% |
US Market Overview
The major US indices showed robust performance overnight:
- S&P 500 and Nasdaq: Both achieved all-time highs.
- Market Trends: The equal-weighted S&P 500 rose 1.43%, experiencing its best day since May, with increasing activity from the Russell 2000, which gained 5% over the last two days.
- General Sentiment: The rally was supported by growing expectations of Federal Reserve easing, excellent Q2 earnings, and low volatility.
Key Company Updates
- Apple: Plans significant advancements in AI, including new devices.
- Oracle: Job cuts in its cloud division to manage costs amid heavy AI investments.
- Crypto Exchange Bullish: Saw a significant price surge following its IPO.
- CoreWeave: Operating profits fell short of expectations owing to increased capital expenditure.
- Tencent: Reported a 15% rise in quarterly revenue driven by successful AI investments and gaming.
Insights on Tariffs and Trade
- China Relations: There’s a focus on upcoming negotiations, with recent comments downplaying tariff relief’s impact on Chinese investments in the US.
- India and China’s Diplomatic Moves: Both countries are seeking improved relations amid ongoing trade discussions.
Economic Indicators
- Central Banks: An anticipated 50 basis points rate cut is being signalled ahead of the Fed meeting next month.
- Australian Economy: The RBA has noted elevated wage inflation, influenced by a tight labour market.
Today’s Focus on ASX
Today presents a critical opportunity for corporate earnings, including major results from ASX, Bell Financial Group, and Origin Energy, among others. Markets are generally buoyed by positive sentiment from the US, despite concerns about potential market volatility.
Broker Movements
- APA Group: Downgraded to Sell; target increased to $7.50.
- Bravura Solutions: Downgraded to Neutral; target cut to $2.03.
- Coronado Global: Downgraded to Sell; target upped to $0.26.
- Treasury Wine Estates: Downgraded to Equal-weight; target reduced to $8.70.
Key Economic Events
Economic Calendar (AEST):
- 11:30 am: Australia Unemployment Rate (Jul)
- 4:00 pm: UK Q2 GDP
- 10:30 pm: US PPI (Jul)
As the trading day unfolds, investors are encouraged to monitor corporate performances and economic updates closely.
