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Table of Contents
Monday Morning Market Wrap-Up
ASX 200 futures are down 53 points (-0.59%) as of 8:30 am AEST.
Key Highlights:
- The S&P 500 and Nasdaq indices declined, while the Dow Jones slightly increased, momentarily reaching new record highs.
- Analysts from Goldman Sachs and Bank of America indicate a potential pullback for the US stock markets, citing rising investor complacency and forthcoming dovish cues from the Fed at the Jackson Hole symposium.
- Today’s trading session anticipates significant earnings reports including those from A2 Milk, Bluescope, and GPT Group.
Overnight Summary
Date: Mon 18 Aug 25, 8:22 am AEST
| Major Indices | Value | % Change |
|---|---|---|
| S&P 500 | 6,450 | -0.29% |
| Dow Jones | 44,946 | +0.08% |
| NASDAQ Comp | 21,623 | -0.40% |
| Russell 2000 | 2,287 | -0.55% |
| Country Indices | Value | % Change |
|---|---|---|
| Canada | 27,905 | -0.04% |
| China | 3,697 | +0.83% |
| Germany | 24,359 | -0.07% |
| Hong Kong | 25,270 | -0.98% |
| India | 80,598 | +0.07% |
| Japan | 43,378 | +1.71% |
| United Kingdom | 9,139 | -0.42% |
Commodities (USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,335.6 | -0.04% |
| Copper | 4.4716 | +0.01% |
| WTI Oil | 63.14 | -0.84% |
Currency
- AUD/USD: 0.6511 (+0.06%)
Cryptocurrency
- Bitcoin (USD): 117,843 (+0.39%)
- Ethereum (AUD): 6,885 (+1.60%)
Overnight Markets Review
- US equity markets closed moderately lower, concluding a subdued session amid positive retail sales data countered by elevated one-year inflation expectations and recent earnings disappointments.
- The Russell 2000 index saw the most significant weekly gain at +3.07%, with the Dow, S&P 500, and Nasdaq also in a positive range for the week.
- Market behaviour indicated a defensive trend, with investors favouring bonds and trimming profitable stocks amid signs of market complacency.
Stock Insights
- Applied Materials: Provided a disappointing guidance due to weak demand from China.
- Oracle and Alphabet: Announced a partnership to integrate AI models into Oracle cloud services.
- Berkshire Hathaway: Continued divesting from Apple and T-Mobile while increasing its position in UnitedHealth.
Key Areas of Focus
- Tariffs: President Trump has postponed imposing additional tariffs against China in light of ongoing discussions with Russia.
- Central Banks: Fed Chair Powell is poised to reveal a new policy framework at Jackson Hole, and Fed officials suggest potential rate cuts.
- Economic Indicators: US retail sales for July rose by 0.5% month-on-month, while China reported disappointing economic activity.
ASX Today
Major Earnings Day: The market is poised for a significant influx of corporate earnings reports. Key announcements from major companies like A2 Milk and GPT Group are set to drive investor sentiments today.
What to Watch
- A defensive posture among investors as S&P 500 healthcare stocks surged due to relative undervaluation, driving the sector up 1.65%.
- The bullish momentum in the healthcare sector is expected to influence market strategies.
Broker Moves
- Gemlife: Initiated with an overweight recommendation and a target price of $5.35.
- Mirvac: Upgraded to "Buy" from "Neutral," target increased to $2.60.
Key Events to Note
- Ex-Dividend Stocks: A listing of stocks trading ex-dividend is available for Monday, including Platinum Asia Investments.
- Corporate Actions Today: Significant earnings announcements are expected from companies across various sectors.
In conclusion, today’s trading will be greatly influenced by earnings reports, analyst sentiments regarding market movements, and broader economic factors. Investors will be monitoring developments closely as they navigate this volatile landscape.
