The ASX is set to fall, with ASX 200 futures down 0.8% to 8,217 points at the close of US trading.
Yesterday, the ASX200 closed 12 points higher (+0.14%) at 8,308, with Utilities (+3.24%), Financials (+1.89%) and Consumer Discretionary (+1.13%) leading the gains. Information Technology (-6.84%), Real Estate (-2.18%) and Materials (-1.41%) weighed on the index.
The week began in a similar fashion to the last, as a fresh wave of earnings shocks saw the ASX200 drop 80 points in early trade to a near six-week low of 8,216.
However, the market staged a strong recovery, driven by dip buyers — particularly in banking stocks — capitalising on a recent 9% decline in the Financials sector. Sentiment was also buoyed by relief that Germany’s election outcome was less extreme than anticipated.
“Leading the early smash-up derby WiseTech, which finished 20.09% lower at $97.25 after downgrading guidance for a second time and announcing four directors were leaving the company, citing intractable differences about the ongoing role of Richard White,” IG Markets analyst Tony Sycamore noted.
“Iress was poleaxed 14.48% to $7.68 after it downgraded its guidance. Reece dived 13.21% to $19.05 after its net profit for the 1H2025 fell 19.1% YoY to $180.9 million vs $223.6 million this time last year.
“Earnings season rolls on today with reports set to drop from companies including Johns Lyng, Nine Entertainment, Sims, Zip and Woodside. The rates market is pricing in a full 25bp RBA rate cut in July and another 25bp rate cut in November.”
Tech stocks push Nasdaq down
The S&P 500 and Nasdaq closed lower overnight as concerns over the outlook for technology stocks and a string of weaker US economic data raised fears of an economic slowdown.
Market attention now turns to the CB Consumer Confidence Index release, which is expected to show a decline to 102.5 in February from 104.1 previously, extending its retreat from November’s high of 111.7.
In equities, Palantir fell 10.59% to $90.68, marking a nearly 28% decline from last Wednesday’s high of $125.41, amid reports of potential US defence budget cuts under a possible Trump administration.
Microsoft slipped 1.03% to $404 as news emerged of the company cancelling leases on large data centres, raising concerns over excessive AI infrastructure spending by tech giants. Meanwhile, Nvidia declined 3.09% to $130.28 ahead of its earnings report due on Thursday.
Nvidia is set to release its fourth-quarter fiscal 2025 results on Thursday at 8:20 am, after market close. After a sharp decline in late January following the emergence of DeepSeek, the company’s share price has rebounded strongly, rising from a low of $113.01 to a high of $143.44 last
“Nvidia is expected to report earnings per share (EPS) of $0.84 on $38 billion in revenue, beating last quarter's figures. It has a strong record of beating expectations, and the company guidance around future demand and ability to meet that demand will be closely scrutinised, as will any commentary around DeepSeek,” Sycamore noted.
“Nvidia’s options suggest a 7.7% swing in either direction following the earnings results. Based on Friday's closing price of $134.43, this implies a move either towards $145 or $124 after its earnings are released.”
Around the grounds
Mixed results in Asia
Chinese markets closed mixed, with the Shanghai Composite Index slipping 0.2% to 3,373.03, while the Shenzhen Composite Index edged up 0.1% to 2,091.46.
- Hong Kong's Hang Seng Index declined 0.6% to 23,341.61.
- Japan's Nikkei 225 advanced 0.3% to 38,776.94.
- India's BSE SENSEX dropped 1.1% to 74,454.41.
Flat in Europe
In Europe, markets were mixed.
- The FTSE 100 Index in the United Kingdom ended flat at 8,658.98.
- Germany's DAX gained 0.6% to 22,425.93, while France's CAC 40 fell 0.8% to 8,090.99.
Bond yields hold, commodities rise
US 10-year bond yields settled near 4.39%, reflecting steady market conditions.
In commodities, oil prices are climbing, with Brent crude, the global benchmark, trading around US$74.33 per barrel, while US West Texas Intermediate (WTI) sits at US$70.70 per barrel. Gold futures have also strengthened, hovering near US$2,963.80 per ounce.
Iron ore prices on the Singapore Exchange closed at US$108.30 per tonne, while cryptocurrency leader Bitcoin is trading just above US$94,000.
Meanwhile, the Australian dollar is holding around US$0.6347. Later today, Reserve Bank of Australia (RBA) assistant governor Brad Jones is scheduled to participate in an online discussion on payment systems.
What about small caps?
The S&P/ASX Small Ordinaries closed lower yesterday, down 1.00% to 3,185.90. Over the last five days, the index has lost 2.10%.
It is a slow day so far for newsflow but you can read the following and more throughout the day.
- Yandal Resources Ltd has provided an exploration update on activities at the Ironstone Well-Barwidgee (IWB) Gold Project. The update includes developments at the Caladan target area, which encompasses the Arrakis Prospect within exploration licences E 53/1843, E 53/2304, E 53/2192, and E 53/1882. The IWB Gold Project is 60 kilometres south of Northern Star Resources Ltd’s Jundee mining complex and 18 kilometres north of the Siona discovery, within the Yandal Greenstone Belt.
- Dynamic Metals Ltd has been informed by its largest shareholder, Jindalee Lithium Ltd, that Jindalee has sold its entire stake in Dynamic. The transaction, facilitated by Argonaut Securities, involved the sale of shares to a group of sophisticated and high-net-worth investors.
- Great Boulder Resources Ltd has provided an update on exploration at the Side Well South Prospect, part of its flagship Side Well Gold Project near Meekatharra, Western Australia. Side Well hosts a mineral resource estimate (MRE) of 668,000 ounces at 2.8 g/t gold.