S&P/ASX 200 futures were up 53 points or 0.62% at 8:30 am AEST, suggesting a modest rebound after Wednesday’s sharp decline. The benchmark index closed 68.5 points lower, down 0.79% to 8,561.80 — its biggest single-day drop since early May — led by declines in major banks and resource stocks. Market sentiment soured following sticky US inflation data and renewed tariff rhetoric, which saw traders scale back expectations of a near-term rate cut.
Tony Sycamore of IG warned that a drop below 8,510 could trigger a deeper correction toward the 200-day moving average near 8,250. Materials were hit, though iron ore futures in Singapore gained 1.2% to US$100.10 per tonne on speculation of more Chinese property stimulus. Rio Tinto rose 0.2% after strong Q2 output data, while Iluka Resources advanced 4.3% amid rare earths optimism.
Looking ahead, the Australian Bureau of Statistics (ABS) is due to release the June employment report, with a 20,000 jobs gain and a steady 4.1% unemployment rate anticipated. Corporate updates are expected from Santos, Yancoal, Alcoa and Gold Road Resources.
Modest gains on Wall St
Wall Street posted modest gains after a volatile session dominated by inflation, trade tensions, and speculation around the Federal Reserve Chair’s future. The Dow Jones rose 231 points or 0.5%, the S&P 500 added 0.3%, and the Nasdaq gained 53 points or 0.3%.
Johnson & Johnson rallied 6.2% after an upbeat earnings report and guidance upgrade, while Goldman Sachs rose 0.9% on record trading revenue. Bank of America shares eased 0.26% despite better-than-expected earnings, with CEO Brian Moynihan stating he does not anticipate a rate cut until 2026.
Europe dips
European markets closed lower as trade concerns and a tech sell-off pressured sentiment.
The pan-European FTSEurofirst 300 dropped 0.6%, and the UK FTSE 100 fell 0.1%. ASML shares fell 11% despite beating earnings, as a cautious outlook weighed heavily. Renault plunged 18% after a profit warning and leadership change. UK inflation surprised to the upside at 3.6%, reducing the likelihood of an August Bank of England rate cut.
Currencies
The Australian dollar traded between US64.95 cents and US65.54 cents, settling near US65.29 cents. The Euro moved between US$1.1563 and US$1.1721, ending near US$1.1638. The Japanese yen firmed to JPY147.83 per US dollar.
Commodities
- Oil: Brent crude fell US$0.19 to US$68.52; WTI dropped US$0.14 to US$66.38.
- Gold: COMEX gold futures gained 0.7% to US$3,352 per ounce, with spot gold near US$3,346.
- Iron ore: Singapore futures rose US35 cents to US$97.06 per tonne.
- Base metals: Copper slid 0.9% and aluminium lost 0.6% on trade concerns and currency volatility.