ASX 200 Live Updates – Wednesday, 16th July

Live Coverage: ASX Update – Wednesday, July 16

Welcome to our live ASX coverage for Wednesday, July 16. We are pleased to debut this new format with a focus on timely updates. Ensure to refresh the page to receive the latest information, and we appreciate any feedback on how to enhance your experience.

US Inflation Shows Signs of Softening, Yet Tariffs Impact Consumers

[9:00 am] Recent US inflation data revealed a cooler-than-expected rate for the fifth consecutive month, although concerns arise regarding companies possibly transferring tariff-related expenses onto consumers.

• June Core CPI: Increased by 0.2% month-on-month, compared to the 0.3% predicted.
• Annualised Core CPI: Climbed 2.9%, slightly below the consensus of 3.0%, up from 2.8% in May.
• Headline CPI: Rose by 0.3% month-on-month, aligning with expectations.
• Annualised Headline CPI: Stood at 2.7%, matching projections but a rise from 2.4% in May.
• Shelter Index: Grew by 0.2% month-on-month, contributing significantly to the overall inflation increase.
• Core Goods: Recorded a 0.2% month-on-month rise, reflecting heightened tariff impacts, in contrast to a flat reading in May.

News Corp Announces $1 Billion Share Buyback

[8:55 am] News Corp revealed a substantial $1 billion share repurchase scheme. This adds to its existing buyback total of $1.3 billion, following a prior $1 billion programme initiated in September 2021, which currently has around $303 million left.

The company plans to commence these buybacks following its FY25 earnings announcement scheduled for early August. Key comments from management include:

• "We believe our stock is trading at a significant discount to its intrinsic value. We expect a significant increase in the pace of repurchases from the current rate."
• "Our balance sheet is impeccable, and our cash flow has been revitalised over the past decade. We are confident in our potential for strong growth, and we believe that extending our buyback programme will increase shareholder value."

BofA Fund Manager Survey Reflects Caution in Markets

[8:50 am] The latest Global Fund Manager Survey from Bank of America highlighted a number of bearish market indicators, though it does not foresee an immediate downturn.

• Investor Sentiment: Bullish sentiment has surged to its highest level since February 2025, indicating increased risk appetite over the last three months.
• Cash Levels: Dropped 0.3 percentage points to 3.9%, often a sign of market peaks.
• US Exposure: Experienced the largest rise since December 2024, with significant increases in technology allocations, marking the largest three-month spike since March 2009.
• Recession Expectations: Have decreased for three consecutive months.
• Short US Dollar Trade: Became the most crowded position for the first time ever.

ASX Market Outlook

[8:40 am] ASX 200 futures are down by 66 points (-0.77%) following a disappointing overnight session, where over 90% of S&P 500 stocks closed lower.

This evening’s session was rich in catalysts, including US inflation data, earnings reports from major banks, and the monthly BofA FMS survey, which will be explored further in the updates ahead.

For those new to our coverage, we encourage you to catch up with today’s Morning Wrap to stay informed.

Stay tuned for more updates as we continue to monitor the evolving market landscape.