ASX Morning Wrap – July 2, 2025
Market Overview
The ASX 200 futures saw a modest increase of 18 points (+0.21%) this morning at 8:30 am AEST. The S&P 500 and Nasdaq experienced slight declines following a series of record highs, indicating a rotation within the market favoring the equal-weight S&P 500 over the standard index. The Dow and Russell 2000 closed positively in the overnight session. In political news, Trump’s substantial $3.3 trillion tax and spending plan successfully passed the Senate, whilst US trade discussions with India are gaining momentum.
Overnight Snapshot
As of July 2, 2025, here’s a summarised overview of significant market indices and commodities:
| Market Indices | Value | Change |
|---|---|---|
| S&P 500 | 6,198 | -0.11% |
| Dow Jones | 44,495 | +0.91% |
| NASDAQ Composite | 20,203 | -0.82% |
| Russell 2000 | 2,198 | +1.03% |
| Commodity Prices (USD) | Value | Change |
|---|---|---|
| Gold | $3,338.81 | +1.08% |
| Copper | $5.0462 | -0.20% |
| WTI Oil | $65.53 | +0.56% |
| Cryptocurrency | Value | Change |
|---|---|---|
| Bitcoin | $105,909 | -1.30% |
| Ethereum | $3,660 | -3.41% |
US Sectors Performance
The US sectors displayed mixed outcomes overnight, reflecting a swing towards value stocks and small caps:
| Sector | Change |
|---|---|
| Materials | +2.28% |
| Health Care | +1.39% |
| Consumer Staples | +0.76% |
| Information Technology | -1.13% |
Market Highlights
- Major US benchmarks showed divergence with a substantial rally in the equal-weight S&P 500, outperforming the traditional index significantly.
- Investor sentiment remains cautious; retail investors are increasingly nervous about the sustainability of market rebounds.
- The US dollar is facing a downturn, marking its poor start to the year since 1973.
Key Stocks to Watch
- Apple: Considering alternatives to enhance Siri’s capabilities through partnerships.
- Amazon: Approaching a robot-to-human worker ratio in its warehouses.
- Tesla: Q2 vehicle sales projected to decrease.
- Ford: Notable drop in EV sales, while hybrid sales increase.
- Hershey: Planning to eliminate synthetic dyes in response to health concerns.
Central Banks and Economic Developments
- Trump has put pressure on the Federal Reserve for aggressive rate reductions, citing economic strain.
- Goldman Sachs predicts three Fed rate cuts for this year, reflecting labour market weaknesses.
- The latest ISM Manufacturing index for June indicates a slight contraction in activity, while employment openings have risen significantly, suggesting areas of strength in the job market.
Australia’s Market Today
Today’s highlights include:
- Alcoa Corp has finalised the sale of its stake in the Ma’aden joint venture, expecting a $780 million gain.
- James Hardie completed a significant acquisition of Azek for $8.75 billion.
- The Reject Shop has been suspended from trading.
What’s Ahead?
Expect broader market movements as the ASX 200 aims to recover after a stable close on Tuesday, particularly as investor focus shifts towards smaller and more defensively positioned stocks.
Broker Updates
- Medibank has been downgraded to Neutral.
- Platinum Asset Management sees an upgrade to Neutral despite a target reduction.
- QBE Insurance Group has been downgraded to Neutral status.
Key Economic Calendar
- 9:00 am: Australia’s Ai Group Industry Index (June)
- 11:30 am: Australia’s Building Permits (May)
- 11:30 am: Australia’s Retail Sales (May)
Stay tuned for updates and analysis on company announcements, market movements, and broader economic indicators throughout the day.
