The S&P/ASX 200 Index is set to open lower, with futures down 32 points or 0.37% at 8:30 am AEST. The index shed 5 points or 0.06% last week to close at 8,662, retreating from near-record highs following fresh tariffs announced by US President Donald Trump. While Australia escaped with a relatively modest 10% tariff, sector-specific duties on aluminium, steel, and pharmaceuticals remain a risk.
Sector performance was mixed: Consumer Discretionary (+2.56%), Financials (+1.45%), Industrials (+1.31%), and Consumer Staples (+0.74%) led gains. Materials (-3.92%) and Energy (-1.66%) were key drags. Top performers included DroneShield (+19.80%) and Betmakers (+16%), while Boss Energy (-49.85%) and Syrah Resources (-28.11%) posted sharp declines.
With limited local data scheduled, investor focus shifts to the Reserve Bank of Australia’s 12 August meeting. The market is fully priced for a 25 basis point rate cut, with 60 basis points of cuts expected by year-end. Earnings reports from AMP, QBE and Nick Scali are also due this week.
Wall St slumps
Wall Street slumped on Friday after a weak July jobs report and additional tariffs from Trump. The S&P 500 fell 2.36% for the week—its steepest weekly loss since March—while the Nasdaq dropped 2.19% and the Dow Jones lost 2.92%.
The US economy added just 73,000 jobs in July, well below expectations. Downward revisions to prior months and a rise in the unemployment rate to 4.2% further dented sentiment. Trump’s dismissal of the Bureau of Labor Statistics head raised concerns over data credibility. Markets responded by lifting the probability of a September Federal Reserve rate cut to 95%.
Second-quarter earnings season continues, with reports due from Palantir, Pfizer, Uber, McDonald’s, and Disney.
Europe’s worst session in months
European markets suffered their worst session since April on Friday, led lower by travel and banking stocks. The FTSEurofirst 300 dropped 1.9%, closing the week down 2.6%. The UK’s FTSE 100 declined 0.7% on the day and 0.6% for the week.
Currencies
The Euro rose from US$1.1389 to close near US$1.1585. The Australian dollar gained to US64.75 cents, and the Japanese yen strengthened from JPY150.63 to JPY147.35 against the US dollar.
Commodities
Oil prices retreated amid OPEC+ supply concerns and softer demand expectations following weak US data. Brent crude fell 2.8% to US$69.67 a barrel, though it gained nearly 6% for the week. US Nymex crude also dropped 2.8% to US$67.33 a barrel, up 6.3% for the week.
Base metals were mixed. Copper rose 1.9% on Friday but fell 23.4% for the week after Trump excluded refined metals from tariff hikes. Gold climbed 1.5% to US$3,399.80 an ounce, while iron ore dipped 0.3% to US$99.57 a tonne but rose 1% over the week.