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Monday Morning Wrap: Market Insights and Key Developments
ASX 200 futures opened slightly down by 5 points (-0.05%) as of 8:30 am AEST.
Key Highlights:
- Major US indices closed positively, with the S&P 500 and Nasdaq both rising over 1.0% last week.
- A significant trade agreement between the US and EU was reached; the EU is expected to procure up to US$750 billion in American energy products and invest $600 billion in the US.
- Corporate earnings report week has arrived, with around 38% of the S&P 500 set to release their results, including Pilbara Minerals on Wednesday.
Overnight Market Summary
As of Mon 28 July 2025, 8:24 am (AEST), major US stock indices reflected the following:
| Name | Value | % Change |
|---|---|---|
| S&P 500 | 6,389 | +0.40% |
| Dow Jones | 44,902 | +0.47% |
| NASDAQ Composite | 21,108 | +0.24% |
| Russell 2000 | 2,261 | +0.40% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 27,494 | +0.45% |
| China | 3,594 | -0.33% |
| Germany | 24,218 | -0.32% |
| Hong Kong | 25,388 | -1.09% |
| India | 81,463 | -0.88% |
| Japan | 41,456 | -0.88% |
| United Kingdom | 9,120 | -0.20% |
Commodities Overview (USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,336.98 | -0.13% |
| Copper | 5.8123 | +0.49% |
| WTI Oil | 65.07 | +0.33% |
Currency Status
| Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6573 | +0.10% |
Cryptocurrency Highlights
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 119,542 | +1.21% |
| Ethereum (AUD) | 5,843 | +2.25% |
Major US Sector Performance
| Sector | % Change |
|---|---|
| Materials | +1.17% |
| Industrials | +0.98% |
| Consumer Discretionary | +0.78% |
| Financials | +0.72% |
| Health Care | +0.50% |
| Utilities | +0.25% |
| Technology | +0.24% |
| Consumer Staples | +0.14% |
| Real Estate | +0.01% |
| Communication | -0.19% |
| Energy | -0.40% |
Market Insights
- US stock performance ended the session positively, with the S&P 500 and Nasdaq achieving fresh record highs, driven by robust corporate profits.
- The S&P 500 futures rose approximately 0.3% following the announcement of the US-EU trade agreement.
- Corporate earnings are trending significantly, with about 83% of companies outperforming analyst expectations.
- Concerns about over-valued tech shares have led to a resurgence in value investing.
- There are indications from Goldman Sachs regarding an increase in speculative investing, which could pose risks for broader market stability.
- Gold prices: Money managers have increased their bullish positions to the highest levels since April.
Notable Stocks and Economic Developments
- Intel shares dropped by 8.5% after disappointing earnings and future expense guidance.
- The luxury goods sector is facing challenges, with flat sales reported after a poor 2024.
- Puma has indicated a potential full-year loss which affected their stock drastically.
- Volkswagen announced a downturn in profits due to new tariffs impacting their margins.
Central Bank Moves
- The Bank of Japan is considering a potential rate hike due to the recent US-Japan trade developments.
- China’s central bank injected US$84 billion into the market to stabilise the economy amidst ongoing international tension.
- Economists are predicting the Bank of England will reduce rates in the upcoming months if growth remains stable.
Tariffs & Geopolitical Factors
- A new tariff deal between the US and EU promises to increase trade with 0% tariffs on specific goods, addressing previous trade tensions.
- A 90-day extension of the trade truce between the US and China is being anticipated.
ASX Today
- The S&P/ASX 200 closed down 1.0% last week, with notable declines from banks due to less than stellar quarterly earnings.
- Highlights include Clarity Pharmaceuticals gearing up for a significant capital raise, while Lendlease is exploring potential sale options for its retirement village stake.
Broker Recommendations
- EVT retained a ‘Buy’ rating, increasing the target price to $18.15.
- Fortescue downgraded to ‘Sell’ but with an adjusted target of $17.40.
- Whitehaven Coal faced multiple downgrades, reflecting cautious optimism on future performance.
Key Events to Watch
- With trade developments impacting market sentiment, stocks may see a rise today. Analysts remain vigilant as the week commences, with a relatively quiet start overall.
Stay tuned for the latest coverage and updates through our Live Blog as market dynamics continue to shift.
