Table of Contents
ASX Morning Brief – August 6, 2025
Market Overview:
As of 8:30 AM AEST, ASX 200 futures are up by 11 points, reflecting a modest rise of 0.12%.
Key Highlights:
- Major US stock indices initially gained but most ended lower, closing near their session lows.
- The ISM Manufacturing PMI for July in the US fell significantly short of expectations, with concerning signals in new orders and a rising prices index.
- Upcoming financial results are expected from Pinnacle Investment Management, BWP Trust, and REA Group, among others.
Overnight Summary
Market Close Reports:
- US Major Indices:
- S&P 500: 6,299 (-0.49%)
- Dow Jones: 44,112 (-0.14%)
- NASDAQ Comp: 20,917 (-0.65%)
- Russell 2000: 2,226 (+0.60%)
Country Indices Performance:
- Canada: +2.03%
- China: +0.96%
- Germany: +0.37%
- India: -0.38%
- Japan: +0.64%
- United Kingdom: +0.16%
Commodities Prices (USD):
- Gold: $3,379.53 (+0.16%)
- Copper: $4.36 (-1.67%)
- WTI Oil: $65.17 (-1.71%)
Currency Highlights:
- AUD/USD: 0.6469 (-0.01%)
Cryptocurrency Updates:
- Bitcoin (USD): $113,380 (-1.53%)
- Ethereum (AUD): $5,490 (-4.45%)
US Market Sectors
Performance by Sector:
- Materials: +0.80%
- Consumer Discretionary: +0.29%
- Utilities: -1.05%
- Consumer Staples: -0.16%
- Health Care: -0.39%
Market Sentiment:
The sentiment remains mixed, with materials and consumer discretionary sectors performing well while health care and utilities lagged behind.
Overnight Market Dynamics
- US indices generally closed lower despite an initial upward trend.
- The ISM Services Index showed unexpected softness, which points to challenges ahead in the economy, particularly in new orders and pricing pressures.
- Concerns around M&A activity are rising, with more companies using cash for buyouts instead of incurring debt due to high borrowing costs.
Stock Movements:
- Palantir: Outperformed earnings expectations, citing AI as a key growth driver.
- BP: Announced a portfolio review following strong quarterly earnings.
- Hims & Hers: Shares plunged after failing to meet revenue forecasts.
Tariff Developments
Negotiations continue between the EU and the US regarding a 15% trade agreement, particularly focusing on steel volumes.
Central Bank Insights
Federal Reserve’s Daly indicated that discussions around potential rate cuts may soon gain traction, emphasising the need to approach future policy meetings with flexibility.
Economic Trends
- US ISM Services PMI: Recorded at 50.1 compared to a forecast of 51.4, signalling expansion but with declining new orders.
- China’s Services PMI: Accelerated unexpectedly to 52.6, suggesting robust growth.
ASX Today Highlights
Corporate Announcements:
- News Corp: Reported Q4 revenue of $2.11 billion, aligning with expectations.
- Pinnacle Investment Management: Reported slight earnings beat at $134.4 million for FY25, amid trading pressures.
Broker Updates
- Block: Downgraded from Overweight to Equal-weight with a price target of US$73.
Key Upcoming Corporate Actions
Stocks trading ex-dividend today include:
- Djerriwarrh Investments (DJW) – $0.083 (due on Aug 7)
- Amcil (AMH) – $0.055 (due on Aug 8)
- Argo Investments (ARG) – $0.20 (due on Aug 8)
Economic Calendar – Today (AEST):
- 9:00 AM: Australia AI Group Industry Index (July)
In summary, as we begin a new day in the markets, key indicators suggest a cautious approach amidst ongoing economic uncertainty and corporate earnings reports. The ASX is set for a slight upbeat opening, but it’s essential for investors to remain vigilant regarding the unfolding international and domestic economic landscape.
