ASX 200 futures were up 40 points or 0.46% at 8:30 am AEST, pointing to a firmer open for local equities.
The S&P/ASX200 Index closed 9 points or 0.10% higher on Tuesday at 8,677, with gains in Materials (+2.37%), Health Care (+2.08%) and Energy (+0.77%) offsetting weakness in Financials (-1.65%), Telecommunications (-0.42%) and Consumer Discretionary (-0.40%).
The index opened strongly, climbing as much as 46 points (+0.53%) early in the session, before retreating into the red during the afternoon as selling pressure mounted across the major banks for a second consecutive day.
Several factors have been cited for the rotation out of the banking sector, including stretched valuations and profit-taking, alongside a possible shift into more attractively priced mining stocks. Some analysts have also pointed to global cues, noting investor reactions to Warren Buffett’s recent divestments in US bank shares amid heightened concerns around economic uncertainty, spurred by trade tensions and political interference in central bank policy.
Among the banks, Commonwealth Bank of Australia fell 3.1% to A$172.42, down over 10% from its record high in late June. National Australia Bank lost 2.7% to A$37.22, Westpac declined 1.27% to A$32.65, and ANZ slipped 0.77% to A$29.82.
Conversely, major miners were buoyed by rising iron ore prices, with the Singapore futures contract up 0.5% to US$104.05 per tonne. Rio Tinto gained 3.37% to A$118.32, Fortescue Metals rose 3.25% to A$17.81, and BHP climbed 2.60% to A$41.51, its strongest close since December 2024.
The Australian interest rate market now fully prices in a 25 basis point cut at the Reserve Bank of Australia’s next meeting on 12 August, with a total of 65 basis points of easing expected by year-end.
On the corporate front, quarterly reports are due today from Iluka Resources, Paladin Energy, Strike Energy, Westgold Resources and Woodside Energy. The Westpac-MI Leading Index is also scheduled for release.
Mixed markets in the US
US sharemarkets closed mixed on Tuesday as investors assessed quarterly earnings and developments in global trade. The Dow Jones Industrial Average rose 179 points or 0.4%, the S&P 500 edged up 0.1% to a record high, while the Nasdaq Composite slipped 81.5 points or 0.4%.
US Treasury Secretary Scott Bessent confirmed upcoming talks with his Chinese counterpart regarding an extension to the 12 August tariff deadline.
Meanwhile, General Motors shares slumped 8.1% after revealing a US$1 billion tariff-related hit to quarterly earnings, while Ford Motor dropped 1.1%. Tesla and Alphabet both gained ahead of results, up 1.1% and 0.7% respectively. Meta Platforms fell 1.1% and Microsoft dipped 0.9%. Lockheed Martin plunged 10.8% after an 80% fall in quarterly profit, while D.R. Horton jumped 17% on stronger-than-expected earnings.
Weak results in Europe
In Europe, the FTSEurofirst 300 index fell 0.4%, marking its third straight decline. Technology stocks were the weakest performers, with Sartorius Stedim Biotech tumbling 8.1%. The UK FTSE 100 index rose modestly by 0.1%.
Currencies and commodities
The Euro rose to US$1.1750, while the Australian dollar strengthened to US65.55 cents. The Japanese yen firmed to JPY146.65.
Oil prices fell for a third day on fading hopes of a US–EU trade deal. Brent dropped 0.9% to US$68.59 a barrel, while WTI fell 1.5% to US$66.21.
Base metals rallied, with copper up 1.5% and aluminium 1.3% higher. Gold rose US$37.30 or 1.1% to US$3,443.70 an ounce, its highest in five weeks. Iron ore climbed 0.3% to US$98.11 a tonne amid expectations of Chinese stimulus.