Table of Contents
Market Overview – ASX and Global Updates
The ASX 200 futures have noted an increase of 47 points (+0.52%) as of 8:30 am AEST today, indicating a positive start to the trading day.
Key Highlights:
-
US Market Activity: Major US indices have recorded gains despite turbulence attributed to former President Trump’s decision to dismiss Fed Governor Cook. This has stirred concerns over dollar stability and the independence of the Federal Reserve.
-
Bond Movements: Long-dated bonds in both the US and Europe are witnessing a surge, driven by renewed fears around inflation and government spending.
- Key Earnings Reports: A significant day awaits on the ASX with numerous FY25 results expected. Notable companies to observe include Flight Centre, Mineral Resources (MinRes), NextDC, Tabcorp, and Woolworths.
Overnight Market Summary (AEST)
Major Indices Performance:
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,466 | +0.41% |
| Dow Jones | 45,418 | +0.30% |
| NASDAQ Comp | 21,544 | +0.44% |
| Russell 2000 | 2,359 | +0.83% |
Commodities (USD):
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,388.95 | +0.65% |
| Copper | 4.4588 | +0.03% |
| WTI Oil | 63.31 | -2.20% |
Currency Exchange:
| Currency Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6495 | +0.01% |
Cryptocurrency:
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 111,753 | +1.48% |
| Ethereum (AUD) | 7,078 | +5.17% |
Sector Analysis – US Market
Most sectors in the US experienced positive movement overnight, particularly:
- Industrials: +1.03%
- Financials: +0.76%
- Health Care: +0.55%
Conversely, sectors such as Energy and Consumer Staples faced slight declines.
Key Developments
-
Trump’s Dismissal of Cook: Trump’s controversial firing of the Fed governor raises concerns about future fiscal policies and the potential for direct influence over Fed decisions.
- Investor Sentiment: Hedge funds have begun shorting the volatility index (VIX) at levels not seen since 2022, indicating rising concerns about market conditions.
Stocks to Watch
- Apple: Scheduled to unveil new products on September 9.
- Google: Launched new AI-enhancements in Google Translate.
- Eli Lilly: Progressing with a new obesity pill aimed at weight loss.
Tariffs & Trade Relations
- President Trump threatens to revamp tariffs, especially targeting nations imposing digital service taxes on US companies. This situation complicates US-EU relations as both negotiate over trade barriers.
- A trade delegation from China is set to visit the US, with agricultural discussions on the table.
Central Banks
- Federal Reserve: Speculations arise about a potential rate cut, spurred by evolving economic circumstances. The RBA is also contemplating its rate strategy based upon forthcoming data.
Economic Watch
- The US durable goods report indicates a smaller than anticipated decline, hinting at potential resilience in the manufacturing sector. In contrast, German industrial figures reveal substantial job losses, suggesting deeper issues within the Eurozone economy.
ASX Today
Today’s trading session will focus on key earnings reports. Investors should monitor performance in sectors like gold and uranium, which benefitted from a weakened US dollar.
Broker Insights
- There are notable upgrades and downgrades on various stocks, including:
- Codan downgraded to Neutral, target raised to $29.60.
- Coles upgraded to Buy with a new target of $24.30.
Key Economic Event Schedule (AEST)
- Upcoming reports include Australia’s Monthly CPI Indicator at 11:30 am, essential for gauging inflation trends.
The outlook remains optimistic as the ASX gears up for a substantial day in the market, with investor sentiment buoyed by global trends and domestic performance metrics.
This encapsulated market report provides a comprehensive snapshot for investors and analysts seeking to understand the dynamics at play within vital global and domestic markets.
