ASX 200 futures were up 31 points, or 0.35%, at 8:30 am AEST. The ASX 200 closed 53 points, or 0.60%, lower yesterday at 8,827, with Utilities (-2.77%), Financials (-2.60%) and Energy (-0.97%) weighing on the index. Materials (+0.97%), Health Care (+0.95%) and Consumer Staples (+0.89%) led gains.
The session was dominated by Commonwealth Bank of Australia’s full-year results, which reported a A$10.25 billion annual cash profit, in line with forecasts. However, given CBA’s premium valuation (price-to-earnings ratio of 27x) and modest earnings growth outlook, analysts said it needed to exceed expectations to lift sentiment. CBA fell 5.41% to A$169.12, accounting for 48 of the index’s 53-point decline.
Other notable moves included AGL Energy dropping 13.11% to A$8.88 after a 21% fall in core profit on lower wholesale prices and higher costs. Tyro Payments jumped 11.47% to A$1.19 after receiving unsolicited takeover proposals from multiple parties.
Today’s earnings calendar features Suncorp, ASX Ltd, Origin Energy, Pro Medicus, Telstra, Temple & Webster and Articore. The July labour force report is also due, with markets expecting 25,000 jobs to be added and unemployment to ease to 4.2%. Interest rate futures are fully pricing a 25 basis point Reserve Bank of Australia cut in November, with another almost fully priced for February 2026.
Record run continues
US sharemarkets extended their record run on Wednesday, though gains were tempered by weakness in some technology stocks following the prior session’s rally on expectations that the United States Federal Reserve is nearing a resumption of monetary policy easing. Softer inflation data earlier in the week boosted speculation of a September rate cut, with some investors wagering on a larger-than-usual move.
Among the so-called Magnificent Seven stocks, Nvidia, Alphabet and Microsoft fell between 0.7% and 1.6%, while Advanced Micro Devices surged 5.4% and Apple gained 1.6%. Small-cap shares outperformed, with the Russell 2000 index rising 2%. S&P 500 materials stocks led sector gains, advancing 1.7%. Paramount Skydance jumped 36.7% after securing exclusive Ultimate Fighting Championship broadcast rights for seven years. The Dow Jones Industrial Average rose 464 points or 1%, the S&P 500 gained 0.3% and the Nasdaq added 31 points or 0.1%.
Europe near two-week highs
European equities touched near two-week highs, buoyed by strength in healthcare and technology. The healthcare sector rose 1.6%, with Genmab up 3.9% and Bayer 3.2% higher.
The FTSEurofirst 300 gained 0.6%, and London’s FTSE 100 added 0.2%.
Currencies
In currency trade, the Euro lifted to US$1.1705 at the close, the Australian dollar edged to US65.45 cents, and the yen strengthened to JPY147.35 per US dollar.
Commodities and base metals
Oil prices retreated to two-month lows after a surprise US crude inventory build.
- Brent crude slipped 0.7% to US$65.63 a barrel and US Nymex fell 0.8% to US$62.65.
- Gold gained 0.3% to US$3,408.30 an ounce, supported by a weaker US dollar and falling yields.
- Copper fell 0.6%.
- Aluminium rose 0.1%.
- Iron ore eased 0.4% to US$102.03 a tonne.
