ASX 200 futures were down 39 points or 0.45% as at 8:30 am AEST, pointing to a weaker open after the local market retreated on Thursday.
The S&P/ASX 200 Index slipped 27.8 points or 0.3% to close at 8,709.4, with nine of 11 sectors in the red, led by energy, industrials and real estate. The pullback followed Wednesday’s rally, as investors booked profits and awaited clarity on a potential trade deal between the United States and European Union.
Reserve Bank of Australia Governor Michele Bullock cautioned that inflation may not fall as quickly as previously forecast, dampening hopes for a rate cut in August. While markets had nearly priced in a 25 basis point cut, Bullock’s comments saw about 5 basis points of expected cuts priced out by year-end.
Macquarie Group led declines, shedding 5.95% to A$213.84 after posting a softer first-quarter profit and announcing the departure of Chief Financial Officer Alex Harvey. Other major banks were mixed, with National Australia Bank gaining 1.24%, Westpac up 0.54% and Commonwealth Bank rising 0.1%.
The Health Care sector is on track for its best month since November 2023, up 8.38% in July. CSL rose 1.53% to A$269.56, Ansell lifted 1.43% to A$31.15 and Sonic Healthcare added 1.29%.
Fortescue climbed 4.34% to A$19.00 after beating shipment expectations in the June quarter. Shares are up 24.35% this month.
Wall Street ends mixed as AI strength offsets earnings drag
US markets were mixed on Thursday. The Nasdaq and S&P 500 hit fresh record highs, supported by strong results from Alphabet, while the Dow Jones slipped 316 points or 0.7%, dragged by IBM and American Airlines.
Alphabet rose 1% on better-than-expected earnings, which also lifted Microsoft, Nvidia and Amazon. Tesla plunged 8.2% after warning of weaker quarters ahead. UnitedHealth dropped 4.8% amid a federal investigation, and IBM lost 7.6% on disappointing software sales.
Strong US data reinforced the positive backdrop. Jobless claims fell to 217,000, marking a sixth straight weekly decline. The S&P Global US Composite PMI rose to 54.6, signalling the fastest expansion rate in 2025.
President Donald Trump made a surprise visit to Federal Reserve headquarters, urging Chair Jerome Powell to cut interest rates more aggressively. Markets are currently pricing in 17 basis points of cuts at the September Federal Open Market Committee meeting, with 43 basis points expected by year-end.
European shares edge higher on ECB hold, bank earnings
European sharemarkets closed higher after the European Central Bank held interest rates steady, as expected. The FTSEurofirst 300 gained 0.2%, while Germany’s Deutsche Bank jumped 9.1% following strong earnings. The UK FTSE 100 rose 0.9%.
Commodities mixed; Aussie dollar softens
The Australian dollar eased to US65.85 cents. The Euro firmed to US$1.1787. Oil prices rose more than 1% after reports that Chevron may resume operations in Venezuela. Brent crude settled at US$69.18 per barrel.
Gold fell US$24.10 or 0.7% to US$3,373.50 an ounce on easing trade tensions. Copper slipped 0.3% and aluminium dropped 0.1%. Iron ore rose 0.3% to US$98.58 per tonne, supported by a positive demand outlook from China.