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Friday Morning Market Wrap: July 18, 2025
Market Overview:
ASX 200 futures have increased by 32 points (+0.37%) this morning.
Key Highlights:
- Both the S&P 500 and Nasdaq have achieved new all-time highs.
- There have been no significant shifts in the Federal Reserve’s outlook or tariff discussions.
- Investors should monitor lithium and graphite stocks closely.
Overnight Summary
As of July 18, 2025, major US indices demonstrated strong performance, with the S&P 500 and Nasdaq both reaching unprecedented levels.
| Major Indices | Value | % Change |
|---|---|---|
| S&P 500 | 6,297 | +0.54% |
| Dow Jones | 44,484 | +0.52% |
| NASDAQ Comp | 20,886 | +0.75% |
| Russell 2000 | 2,254 | +1.20% |
| Country Indices | Country | Value | % Change |
|---|---|---|---|
| Canada | 27,387 | +0.86% | |
| China | 3,517 | +0.37% | |
| Germany | 24,371 | +1.51% | |
| Japan | 39,901 | +0.60% | |
| United Kingdom | 8,973 | +0.52% | |
| Hong Kong | 24,499 | -0.08% | |
| India | 82,259 | -0.45% |
| Commodities (USD) | Commodity | Value | % Change |
|---|---|---|---|
| Gold | 3,339.27 | -0.23% | |
| WTI Oil | 67.62 | +1.80% |
| Currency | Pair | Value | % Change |
|---|---|---|---|
| AUD/USD | 0.6491 | +0.04% |
| Cryptocurrency | Currency | Value | % Change |
|---|---|---|---|
| Bitcoin (USD) | 120,413 | +0.84% | |
| Ethereum (AUD) | 5,357 | +2.83% |
US Market Highlights
- Major US indices closed higher, with solid breadth observed, particularly in specific sectors like technology and consumer staples.
- Key drivers included better-than-expected retail sales and positive earnings from companies like PepsiCo and United Airlines.
- Concerns remain regarding trade tariffs, influenced by former President Trump’s interactions with the Federal Reserve, which have stirred uncertainty among market participants.
Stock Movements
- Amazon: Job cuts announced in its AWS division.
- Uber: Invested $300 million in Lucid to develop a robotaxi fleet.
- PepsiCo: Earnings exceeded forecasts, with shares increasing by 7.4%.
- Netflix: Shares rose by 1.9% following strong Q2 earnings.
Central Banking Insights
- Fed officials have expressed differing opinions on interest rates. Suggestions for maintaining rates were noted, along with the need for potential cuts given economic conditions.
Tariff Developments
- The US plans to impose a significant tariff on Chinese graphite, impacting essential battery supplies.
Economic Indicators
- US retail sales increased notably, indicating broad consumer spending strength, while unemployment figures in Australia have risen, amplifying expectations for a rate cut.
Industry Performance
ETFs Snapshot
Investors are paying special attention to sectors like lithium, with the Lithium & Battery Tech ETF gaining 4.25%.
| Sector ETF | Value | % Change |
|---|---|---|
| Lithium & Battery Tech | 41.42 | +4.25% |
| Strategic Metals | 49.24 | +3.68% |
| Electric Vehicles | 24.72 | +2.19% |
ASX Outlook for Today
- Insignia Financial is set to receive a binding offer from CC Capital, with valuations anticipated above $4.00 per share.
- Graphite and lithium sectors are under scrutiny due to recent tariffs and production restrictions, potentially benefitting local players like Syrah Resources.
Key Economic Events
- Australia’s unemployment rate is now at 4.3%, and market watch is focused on forthcoming economic indicators including Japan Inflation and US housing data.
Conclusion
Today’s market environment reflects a mix of optimism due to strong earnings and economic resilience, albeit with Tariff implications stirring uncertainty. Investors should remain vigilant on sector-specific movements, especially in lithium and graphite, as these could signal broader market trends.
