Table of Contents
Morning Market Wrap (16 July 2025)
ASX 200 Futures: Down 66pts (-0.77%) as of 8:30 am AEST
Key Highlights:
- Major US indices ended mostly lower, buoyed primarily by Nvidia, which climbed 4.0%.
- US inflation figures were slightly below expectations, raising concerns over inflation in core goods and the impact of tariffs.
- This morning features quarterly reports from prominent miners, including Rio Tinto and Evolution Mining.
Overnight Market Overview:
Date & Time: Wed 16 July 2025, 8:34 am AEST
Major Indices:
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,244 | -0.40% |
| Dow Jones | 44,023 | -0.98% |
| NASDAQ Comp | 20,678 | +0.18% |
| Russell 2000 | 2,205 | -1.99% |
Country Indices:
| Country | Value | % Change |
|---|---|---|
| Canada | 27,054 | -0.53% |
| China | 3,505 | -0.42% |
| Germany | 24,060 | -0.42% |
| Hong Kong | 24,590 | +1.60% |
| India | 82,571 | +0.39% |
| Japan | 39,678 | +0.55% |
| United Kingdom | 8,938 | -0.66% |
Commodities (USD):
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,326.46 | -0.49% |
| Copper | 5.4938 | +0.03% |
| WTI Oil | 66.75 | -0.21% |
Cryptocurrency:
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 117,356 | -2.18% |
| Ethereum (AUD) | 4,716 | +2.24% |
US Market Insights:
- US market performance was mixed with the S&P 500 reaching a record above 6,300 before losing ground, indicating weakness among numerous constituents.
- A significant portion of S&P 500 stocks, over 90%, observed declines, particularly emphasised by a 99 basis points underperformance of the equal-weight index.
- Nvidia’s increase was attributed to a resumption of AI chip sales to China, providing some uplift.
Concerns Ahead:
US inflation data showed core CPI rising 0.2% month-over-month against expectations of 0.3%, leading to questions on future Federal Reserve rate cuts.
US Bank Earnings:
- Major banks like JPMorgan, Citi, and Wells Fargo reported robust Q2 earnings, though their forward guidance was inconsistent across the board.
Survey Insights:
A recent Bank of America Fund Manager Survey noted an increase in bullish sentiment, the highest since February. Cash reserves among managers fell, signalling increased investment risk appetite.
Key Stock Movements:
- Nvidia: Resumption of H20 AI chip sales in China buoyed shares.
- Citigroup: Reached its highest stock value since 2008 after announcing strong profits.
- Google: Announced a $25 billion investment in infrastructure.
- Apple: Planned a $500 million investment in a rare earth mine in the U.S.
ASX Today:
- Evolution Mining: Reporting FY25 production guidance on the higher end but also noting increased costs.
- Newscorp: Has authorised a new $1 billion buyback program.
- Rio Tinto: Reported Q2 production above market expectations, maintaining prior guidance.
- Spartan Resources: Set to be removed from the ASX.
What to Watch Today:
Expect a potential pullback in the market due to a downtrend seen in the previous overnight session and rising yields.
Key Events:
Ex-Dividend Stocks:
- Wed 16 Jul: None
- Thu 17 Jul: WAM Global (WGB) – $0.04
Economic Calendar (AEST):
- 4:00 pm: UK Inflation (June)
- 10:30 pm: US PPI (June)
With the current economic climate and fluctuating market dynamics, investors are advised to stay informed and watch for further developments today.
