ASX 200 futures are down 49pts (-0.56%) as of 8:30 am AEST.
The S&P/ASX 200 rallied 177 points or 2.06% last week to close at 8,757, notching up a record high. Gains were fuelled by a softer-than-expected labour report, increasing the likelihood of a 25 basis point rate cut from the Reserve Bank of Australia (RBA) on 12 August. The market has now priced in 65 basis points of RBA cuts by year-end. Technical momentum and seasonal strength also contributed to the index’s rally.
Leading sectors included Information Technology (+5.19%), Health Care (+4.80%), Real Estate (+2.84%) and Energy (+2.32%). Notable stock-level performers were Clarity Pharmaceuticals (+38.43%), Syrah Resources (+28.07%), DroneShield (+23.83%) and Life360 (+14.89%). Conversely, Imugene (-11.76%), South32 (-7.07%), Pacific Smiles (-6.80%) and Mayne Pharma (-5.43%) weighed on performance.
This week, attention turns to Tuesday’s RBA meeting minutes and Thursday’s address from RBA Governor Michele Bullock, following last week’s soft employment data.
US markets retreat on tariff concerns
Wall Street closed lower on Friday following reports that President Donald Trump is pushing for 15–20% tariffs on European Union imports. If enacted, the average US tariff rate would rise to 20–22%, potentially weighing on growth and confidence. Still, investors are watching for possible deadline extensions or new trade deals.
The Nasdaq 100 gained 1.25% over the week, while the S&P 500 rose 0.59%. The Dow Jones dipped 29 points or 0.07%.
In economic data, the University of Michigan consumer sentiment index rose to 61.8 in July, while one-year inflation expectations eased to 4.4%. Federal Reserve Governor Christopher Waller reiterated calls for a rate cut, though most policymakers appear cautious. Reports also suggest Treasury Secretary Scott Bessent advised against removing Fed Chair Jerome Powell.
Corporate updates saw Netflix fall 5.1% despite beating expectations, Charles Schwab rise 2.9%, and Tesla gain 3.21% ahead of earnings. More than 120 companies are scheduled to report this week, including General Motors, Alphabet, IBM, Intel and American Airlines.
The US rates market now prices in 16 basis points of cuts at the September FOMC meeting and a cumulative 43 basis points by year-end.
European markets mixed amid earnings and healthcare losses
Continental European equities edged lower on Friday as corporate earnings took centre stage. The pan-European FTSEurofirst 300 dipped 0.1% on the day and the week, with healthcare stocks down 0.6% after the US FDA advisory panel opposed approval of GSK’s blood cancer drug Blenrep.
In London, the FTSE 100 advanced 0.2% on Friday and closed the week 0.6% higher.
Currency markets strengthen against the US dollar
The Euro climbed from US$1.1612 to US$1.1666, settling near US$1.1625 at the US close. The Australian dollar moved from US64.97 cents to US65.38 cents, trading at around US65.10 cents late in the session. The Japanese yen strengthened from JPY148.81 to JPY148.18 per US dollar, then eased slightly to JPY148.80.
Commodities mixed as oil dips, metals rise
Oil prices fell on Friday amid concerns over US tariffs and mixed economic signals. Brent crude dropped US24 cents to US$69.28 per barrel, while West Texas Intermediate lost US20 cents to US$67.34. Both benchmarks declined around 2% over the week.
Base metals rallied, with copper futures up 1.7% and aluminium gaining 3.2% on Friday. Weekly gains stood at 0.3% and 0.6% respectively.
Gold rose US$13.00 to US$3,358.30 an ounce, supported by a weaker dollar and global uncertainty. Spot gold was near US$3,349 at the close but posted a 0.2% weekly decline.
Iron ore inched up to US$97.22 per tonne — its highest level in four and a half months — as optimism over Chinese demand drove a 0.5% weekly gain.