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ASX Live Updates – Friday, July 4
Welcome to our live coverage of the ASX for Friday, July 4. We’re excited to trial this new format, providing you with a continuous stream of updates. Be sure to refresh the page manually for the latest information and please share your feedback on our improvements!
Bell Potter Updates: Market Ratings
[9:04 am] Bell Potter has announced several updates regarding stock ratings this morning:
- Hub24: Rating retained at Buy; target price increased to $100 from $75.
- Jumbo Interactive: Rating maintained at Hold; target price adjusted down to $11.00 from $11.10.
- Lynas Rare Earths: Rating stayed at Sell; target price decreased to $6.05 from $6.25.
- Pro Medicus: Downgraded from Buy to Hold; target price raised to $320 from $280, reflecting a change in valuation perspective.
US Services PMI Insights
[9:02 am] The June ISM Services Index for the US reported a reading of 50.0, slightly up from 49.9 in May, but below the expected 51.0. Key takeaways from the report include:
- New Orders Index: Improved to 51.3, signalling recovery in demand.
- Employment Index: Declined to 47.2, indicating contraction in employment for three out of the last four months.
- Prices Index: Dipped to 67.5 from 68.7, yet remains one of the highest since November 2022.
- Business Activity Index: Increased to 54.2, showcasing stronger activity amidst ongoing economic concerns.
- Sentiment Issues: Some respondents highlighted slow growth and economic uncertainties impacting sales.
- Factory Orders: Recorded an 8.2% rise in May, rebounding from April’s 3.9% decline.
- Durable Goods: New orders for manufactured durable goods saw improvements, reaching levels not seen since July 2014.
US Jobs Data Exceeds Expectations
[8:59 am] The recent US jobs report revealed unexpectedly robust figures:
- Payroll Growth: Nonfarm payrolls surged by 147,000, significantly higher than projections.
- Unemployment Rate: Dropped to 4.1% from 4.2%, contrary to predictions, largely due to workforce reductions.
- Government Hiring: The government sector saw an addition of 73,000 jobs, primarily influenced by state and local employment despite ongoing federal job declines.
- Private Sector: Private sector growth was modest, adding only 74,000 jobs, which is the slowest pace since last October.
Stock Market Drivers
[8:55 am] On Wall Street, both the S&P 500 and Nasdaq recorded significant gains, closing up 0.83% and 1.02%, respectively, during a shortened trading session due to Independence Day tomorrow. Notable market influences include:
- A surge in bond yields following the strong job data, with the 10-year yield rising by 6.5 basis points to 4.34%.
- President Trump’s tax bill, designed to extend provisions of the 2017 tax cuts, passed through the House, progressing before the holiday deadline.
- Concerns about trade negotiations surfaced, with warnings of potential tariff increases and China’s expressed readiness to retaliate if US deals impact its interests adversely.
Market Opening
[8:45 am] Good morning! The S&P/ASX 200 futures climbed by 27 points (+0.31%), indicating a likely positive opening at record highs following a successful Wall Street session.
For those new to our updates, ensure you catch up with today’s summary in our Morning Wrap.
