ASX 200 futures were up 20 points or 0.22% at 8:30 am AEST, pointing to a tentative rebound after a sharp sell-off on Tuesday. The benchmark S&P/ASX 200 shed 63 points (-0.70%) to close at 8,896, recording its worst single-day fall since early August. Health Care (-8.73%), Energy (-2.20%) and Industrials (-0.84%) led the declines, while Telecommunications (+0.72%), Information Technology (+0.57%) and Financials (+0.37%) outperformed.
The sharp drop came as heavyweight CSL slumped 16.89%, erasing A$22 billion in market capitalisation after flagging a demerger of CSL Seqirus and issuing softer-than-expected FY26 guidance. Reliance Worldwide also weighed, falling 6.74% after its FY25 earnings missed estimates, citing US tariff impacts.
BHP offered some support, rising 1.57% on strong dividend news despite lower revenue and profit.
Investors today will digest earnings from several high-profile names, including James Hardie, Santos, Iluka, and Transurban.
Wall Street mixed as tech stumbles
US markets were mixed overnight.
The Nasdaq and S&P 500 declined as investors rotated out of high-valuation tech stocks like Nvidia (-3.5%) and Palantir (-9.35%), while the Dow Jones added 0.55% as investors sought value. Intel rose 6.97% on a SoftBank investment, while Home Depot gained despite earnings misses.
Attention now turns to Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole address, with markets awaiting clarity on rate policy amid softer inflation and mixed growth signals.
Europe higher on Ukraine optimism
European markets advanced, with the FTSEurofirst 300 up 0.7% and the UK FTSE 100 gaining 0.3%, as optimism grew around potential progress in ending the war in Ukraine. Consumer discretionary led gains, buoyed by autos and food stocks.
Currency and commodity movements
The Australian dollar softened from US64.95 cents to US64.50 cents. The euro dipped to US$1.1645 and the Japanese yen firmed to JPY147.65.
Commodity prices declined across the board. Brent crude lost 1.2% to US$65.79 per barrel on ceasefire hopes. Base metals were weaker with copper down 1.1% and aluminium off 1.2%. Gold slid 0.6% to US$3,358.70 an ounce. Iron ore futures edged lower to US$101.57 per tonne on China demand concerns.
Looking ahead
The Reserve Bank of New Zealand is due to deliver its rate decision today, while key earnings from APA Group, Breville, Santos and Stockland are expected.
In the US, Target and Lowe’s will report before the market opens, and FOMC minutes will be closely analysed for future rate guidance.