The local market is expected to open softer, with ASX 200 futures down 23 points (0.25%) at 8:30 am AEST, after US benchmarks finished little changed in a quiet session dominated by geopolitics and anticipation of Federal Reserve chair Jerome Powell’s speech at Jackson Hole, Wyoming, later this week.
Yesterday, the S&P/ASX 200 climbed 20.7 points (0.23%) to a record close at 8,959.3, its 17th intraday high this year. Gains were broad-based, led by telecoms, information technology, and financials, while weakness in energy, materials and industrials capped the upside.
Wall Street stalls, eyes on Powell
US stocks lacked direction on Monday, with the S&P 500 slipping 0.01% to 6,449, the Dow Jones Industrial Average easing 0.08% to 44,912, and the Nasdaq inching 0.03% higher to 21,630. Market moves were muted as investors awaited Powell’s keynote at the Jackson Hole summit on Friday, where he is expected to lean dovish but may stop short of signalling an imminent cut.
Intel slid 4% on reports the Trump administration is weighing a 10% equity stake in the chipmaker by converting some CHIPS and Science Act subsidies into shares. Analysts flagged uncertainty over whether such a move would mean support or government interference.
Oil rose around 1% after Trump met with Ukrainian President Zelenskiy in Washington and hinted at further talks with Putin, while traders remain alert to any signs of a ceasefire deal.
In Europe, shares were subdued ahead of geopolitical developments, with the Euro Stoxx 50 down 0.26% and Germany’s DAX off 0.18%. Japan’s Nikkei continued to climb, up 0.77%, buoyed by stronger data last week.
ASX recap and company moves
Eight of eleven local sectors finished higher yesterday. Communication services (+1.39%) led the way, lifted by a 4.4% surge in REA Group after naming former CAR Group CEO Cameron McIntyre as its next chief executive. IT (+0.82%) and financials (+0.70%) also gained, with banks continuing their steady recovery.
On the downside, materials (-0.75%) and energy (-0.49%) dragged, reflecting softer commodity prices. BHP and Rio Tinto both shed more than 1%, while Fortescue lost 0.6%. Critical minerals names bucked the trend, with Pilbara Minerals up 3.2%, Mineral Resources 1.3% higher, and Lynas adding 1.9%.
Commodities and currencies
Commodities were mixed overnight, with oil stabilising on geopolitics while base metals eased on a firmer US dollar.
- Gold: US$3,333 (-0.10%).
- Silver: US$38.02 (+0.03%).
- Copper: US$4.46/lb (-0.25%).
- Iron ore: US$101.62/t (+0.03%).
- WTI crude: US$63.28 (+0.70%); Brent: US$66.46 (+0.92%).
- AUD/USD: 0.6496 (+0.08%).
- Bitcoin: US$116,898 (-0.80%).
What’s on today
It is one of the busiest days of earnings season, with heavyweight results due from CSL, BHP, Woodside, Hub24, Judo Capital, Challenger, James Hardie and Seek, among others. Investors will also be watching consumer confidence data at 10:30 am AEST for signs of sentiment following last week’s RBA rate cut.
Globally, Canadian inflation data is due tonight, alongside US housing starts and building permits. The countdown to Powell’s Jackson Hole speech continues, with traders cautious on positioning until Friday’s update.