ASX Morning Wrap: Key Updates for 21 August 2025
Market Outlook:
As of 8:30 am AEST, ASX 200 futures have risen by 23 points (+0.25%), indicating a potentially positive opening for the Australian market.
Quick Summary:
- The S&P 500 has declined for the fourth consecutive session, with leading tech stocks, dubbed the "Mag-7," and growth-related companies experiencing a pullback.
- Retail earnings across the US largely surpassed expectations, although traffic and comparable store sales showed weakness.
- Today marks a significant day for corporate earnings on the ASX; keep an eye on our Live Blog for updates on crucial results.
Overnight Market Insights:
Data as of Thu, 21 August 2025, 8:23 am AEST
Major Indices Performance:
| Name | Value | % Change |
|---|---|---|
| S&P 500 | 6,396 | -0.24% |
| Dow Jones | 44,938 | +0.04% |
| NASDAQ Comp | 21,173 | -0.67% |
| Russell 2000 | 2,269 | -0.32% |
Commodities Prices:
| Name | Value | % Change |
|---|---|---|
| Gold | 3,350.95 | +1.02% |
| Copper | 4.4185 | +0.01% |
| WTI Oil | 62.84 | +1.84% |
Currency Exchange Rates:
| Currency | Value | % Change |
|---|---|---|
| AUD/USD | 0.6435 | +0.02% |
Cryptocurrency Market:
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 114,372 | +0.95% |
| Ethereum (AUD) | 6,759 | +5.11% |
US Sectors Overview:
Performance by Sector (% Change):
| Sector | % Change |
|---|---|
| Energy | +0.86% |
| Consumer Staples | +0.80% |
| Health Care | +0.60% |
| Financials | +0.51% |
| Real Estate | +0.34% |
| Materials | +0.19% |
| Utilities | +0.12% |
| Industrials | -0.09% |
| Communication Services | -0.56% |
| Information Technology | -0.77% |
| Consumer Discretionary | -1.18% |
Market Sentiment:
The major US indices faced pressure as investors digested mixed retail earnings reports, primarily affected by concerns regarding valuations, competition, and future market trends. Palantir, in particular, saw its shares plunge 20% amid ongoing negative performance streaks.
Tariff Developments:
- India has suspended its cotton import duty, signalling potential relief for its garment industry.
- China’s exports of rare earth metals to the US have reportedly surged by 76% since July.
Central Banks Update:
Global central banks are feeling government pressure to lower interest rates amid ongoing economic challenges. New rate cuts have been recorded in nations such as New Zealand and Indonesia, while the European Central Bank anticipates slowing growth despite easing trade concerns.
UK Economic Data:
UK inflation rose to 3.8% year-on-year in July, nudging closer to projected increases for September.
Industry Focus:
Noteworthy Earnings Reports:
Investors should look out for results from significant companies including BHP, Rio Tinto, and others reporting today. On the ASX, sector movements have shown volatility; notable instances include Hansen Technologies, showing dramatic fluctuations in its stock prices.
Broker Recommendations:
- Audinate: Upgraded to Buy, target reduced to $7.10.
- HMC Capital: Downgraded to Hold, target lowered to $3.60.
- James Hardie: Downgraded to Neutral, target set at $36.
- Transurban: Upgraded to Buy with a target increase to $16.10.
Upcoming Economic Data:
- Australian S&P Manufacturing and Services PMI Flash to be released at 9:00 am.
- Key indices from Germany, the UK, and the US to follow later in the day.
In conclusion, as markets brace for a crucial earnings day and digest a sweep of economic indicators, investors need to stay alert to both local and global developments impacting stock performance and broader economic conditions.
