Australian shares are poised to open little changed, with ASX 200 futures up 8 points (+0.09%) at 8:30 am AEST, after US stocks eked out a mixed finish. The S&P 500 managed another record close, but gains were marginal as hotter-than-expected US producer price data cooled the momentum from earlier in the week.
Locally, yesterday’s session saw the ASX 200 rise 46.7 points (+0.53%) to 8,873.8 — just shy of another record high — led by a rebound in financials, a strong showing from utilities, and results-driven gains in select large caps. A drop in iron ore prices and weakness in telcos capped the rally.
Wall Street edges higher despite inflation surprise
US markets were largely rangebound, with the S&P 500 closing up 0.03% at 6,469, the Dow slipping 0.02% to 44,911, and the Nasdaq easing 0.01% to 21,711. Market breadth was weak, with the equal-weighted S&P underperforming by more than 60 basis points.
July’s Producer Price Index jumped 0.9% month-on-month — the biggest increase in three years — lifting the annual rate to 3.3%. Core PPI also rose 0.9% for the month, well above expectations. The sharp rise in wholesale prices revived concerns that tariffs and capacity constraints are beginning to feed into broader inflation, even as CPI earlier in the week suggested consumer prices remain contained.
The data dampened speculation of a supersized Fed cut next month, with traders now all but ruling out 50 basis points and keeping September quarter-point cut odds above 90%.
Intel was a standout, surging more than 7% on reports the US government is considering taking a stake in the chipmaker. Oil prices climbed about 2% on geopolitical tensions ahead of today’s Trump–Putin meeting, while Bitcoin retreated from record highs.
ASX recap and corporate highlights
The ASX 200 touched a new intraday peak on Thursday before easing slightly into the close. Banking stocks led the advance, with Westpac jumping 6.3% after a well-received trading update, in contrast to Commonwealth Bank’s post-results dip the day before. Utilities surged 3.5%, and consumer discretionary and healthcare also outperformed.
On the earnings front, investor attention today turns to results from Cochlear, Mirvac, Baby Bunting, and several REITs. Early headlines include Ampol’s $1.1 billion agreement to acquire EG Australia, expected to lift adjusted EPS in the high single digits. Amcor shares fell in US trade after posting quarterly earnings below forecasts and guiding FY26 EPS slightly under consensus. Cochlear reported FY25 NPAT of $391.6 million, marginally missing estimates, with FY26 guidance also a touch softer than expected.
Commodities and currencies
Commodity markets were mixed, with gold sliding and oil gaining on geopolitical headlines.
- Gold: US$3,335.29 (-0.63%).
- Copper: US$4.4723/lb (-0.39%).
- WTI crude: US$63.93 (+1.96%); Brent: US$66.84 (+1.84%).
- Iron ore (futures): US$101.83 (-0.20%).
- AUD/USD: 0.650 (+0.07%).
- Bitcoin: US$117,758 (-4.13%).
Global backdrop
European equities closed at multi-month highs, supported by strong insurer earnings and hopes for progress in Ukraine talks. The Euro Stoxx 50 rose 0.86%, Germany’s DAX gained 0.79%, and the UK’s FTSE 100 added 0.13%.
In Asia, Japan’s Nikkei fell 1.45%, and Chinese markets were softer ahead of today’s data on retail sales, industrial production and fixed asset investment.
What’s ahead today
A quieter end to the week locally, with only a handful of major results due. Cochlear, Mirvac, and Baby Bunting headline the earnings list, alongside reports from Centuria Office REIT, HealthCo REIT, and Mirvac Group. Corporate news flow includes Ampol’s M&A update and broker rating changes.
In the region, focus will be on midday Chinese economic releases, which could influence local resource stocks. Offshore, US retail sales data will set the tone ahead of the weekend.