Table of Contents
ASX Market Outlook and Global Economic Snapshot
Current Market Overview
As of 8:30 AM AEST, ASX 200 futures are down 25 points (-0.28%). This comes after major US markets experienced declines on Friday, contributing to an overall downward trend for the week, despite achieving solid monthly gains.
Key Highlights:
- The US benchmarks predominantly finished lower last Friday.
- Former President Trump plans to expand tariffs on steel, aluminium, and various other sectors in the upcoming months.
- The earnings reporting season has concluded, except for a few underperforming companies disclosing their results after the market closed on Friday.
Overnight Summary (Mon 01 Sep, 8:21 AM AEST)
Major Indices Performance
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,460 | -0.64% |
| Dow Jones | 45,545 | -0.20% |
| NASDAQ Comp | 21,456 | -1.15% |
| Russell 2000 | 2,366 | -0.50% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 28,564 | +0.46% |
| China | 3,858 | +0.37% |
| Germany | 23,902 | -0.57% |
| Hong Kong | 25,078 | +0.32% |
| India | 79,810 | -0.34% |
| Japan | 42,718 | -0.26% |
| United Kingdom | 9,187 | -0.32% |
Commodities (in USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,448.5 | -0.07% |
| Copper | 4.5101 | -0.09% |
| WTI Oil | 64.01 | -0.06% |
Currency
| Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6542 | +0.03% |
Cryptocurrency
| Coin | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 108,946 | +0.36% |
| Ethereum (AUD) | 6,814 | +2.62% |
US Sector Performance
| Sector | % Change |
|---|---|
| Health Care | +0.73% |
| Consumer Staples | +0.64% |
| Real Estate | +0.55% |
| Energy | +0.54% |
| Financials | +0.21% |
| Materials | +0.02% |
| Communication Services | -0.32% |
| Utilities | -0.36% |
| Industrials | -0.95% |
| Consumer Discretionary | -1.14% |
| Information Technology | -1.63% |
Market Analysis
The Overnight markets showed major US indices declining, attributed to disappointing earnings reports from companies like Dell and Gap. Meanwhile, gold is approaching unprecedented price levels, and there are concerns over the implications of new tariffs announced by the White House.
In a weekly recap:
- Russell 2000 increased by +0.19%.
- S&P 500 recorded a modest decline of -0.10%.
Sector Movement and Noteworthy Stocks
- Caterpillar anticipates significant tariff challenges.
- Marvell Technology’s stock fell 18% due to poor future expectations in data centre demands.
- Companies such as Dell and Gap faced pessimistic market reactions following disappointing quarterly results.
Tariff Developments
Trump plans to extend tariffs to various sectors, including steel and aluminium. The US has also initiated tariffs on goods valued under $800. Ongoing discussions with Canada indicate a shift in expectations regarding tariff exemptions.
ASX Today
Several companies reported their FY25 results after the market closed. Among these, several reported substantial losses – notably 4DS Memory, 5G Networks, and Botanix. Austal faces scrutiny regarding its major shareholder’s stake pending regulatory approval.
What to Watch:
- Gold and silver prices have surged, with miners reacting positively.
- Market corrections may occur as investors prepare for a historically softer September, with a trend toward value and defensives noted in overnight trading.
Broker Recommendations
- Upgraded to Outperform: FINEOS
- Upgraded to Buy: Harvey Norman, PEXA Group
- Downgraded to Neutral: Sandfire, South32
Dividends:
Several companies are trading ex-dividend today, including Aurizon Holdings and Fortescue Ltd.
Upcoming Economic Calendar (AEST):
- 11:30 AM: Australia Building Permits.
- 11:45 AM: China Caixin Manufacturing PMI.
This overview encapsulates crucial movements in markets and anticipates potential shifts in investor sentiment and corporate performance heading into the seasonally weaker month of September.
