The Australian sharemarket is poised for a stronger start this morning, with ASX 200 futures up 47 points (+0.52%) at 8:30 am AEST, pointing to a bounce after Tuesday’s losses. Wall Street managed modest gains overnight despite ongoing turmoil around the Federal Reserve, while investors brace for a flood of local earnings today.
Wall Street edges higher amid Fed turmoil
US markets closed higher, recouping most of Monday’s weakness. The S&P 500 gained 0.41% to 6,466, the Dow Jones added 0.30% and the Nasdaq rose 0.44%, finishing near session highs. Small caps also advanced, with the Russell 2000 up 0.8%.
The backdrop remained tense as President Trump’s move to fire Fed Governor Lisa Cook rattled investors. Cook has vowed to contest the dismissal, but the incident has heightened fears over the Fed’s independence. Strategists warned the episode could accelerate a steeper yield curve and weigh on the US dollar.
US 10-year yields slipped to 4.26%, while European and UK long-dated bonds also sold off amid mounting worries about inflation, fiscal spending and central bank credibility.
In equities, Apple announced a September 9 product launch, Google unveiled new AI-powered tools for Translate, and Eli Lilly reported progress on its obesity pill. Meanwhile, Nvidia’s results tonight loom as a key test for the AI-driven rally.
ASX yesterday: materials weigh, Coles lifts staples
The ASX 200 fell 36.8 points on Tuesday, down 0.41% to 8,935. Materials (-1.2%) and utilities (-1.0%) led the declines, dragging the index lower as sentiment weakened on Fed uncertainty.
Eight of 11 sectors finished in the red. Healthcare (-0.8%), communication services (-0.8%) and industrials (-0.7%) also lagged.
There were pockets of strength. Consumer staples jumped 3.2% after Coles delivered a stronger-than-expected earnings result, helping offset weakness in financials (-0.4%) and real estate (-0.3%). Energy (+1.1%) and IT (+0.6%) also managed gains.
The Small Ordinaries edged 0.1% higher, showing resilience against the broader selloff.
Commodities and currencies
Gold prices climbed 0.7% to US$3,389/oz, as investors sought safety amid the Fed uncertainty. Copper held steady at US$8,920/t. Oil, however, fell sharply — WTI crude down 2.2% to US$63.3 a barrel (bbl) and Brent off 2.3% at US$67.2/bbl — snapping a run of gains.
Iron ore eased slightly to US$101.50 per tonne, while nickel and zinc ticked higher. Lithium carbonate prices in China rose 1.2% to US$11,402 per tonne.
The Aussie dollar steadied near US$0.65, supported by softer US yields. Bitcoin rebounded 1.5% to US$111,800, while Ethereum surged more than 5%.
Earnings deluge
It’s another blockbuster day for reporting season, with results due from market heavyweights across sectors.
Large-cap highlights include:
- Woolworths (WOW)
- Mineral Resources (MIN)
- NextDC (NXT)
- Flight Centre (FLT)
- Tabcorp (TAH)
- WiseTech (WTC)
- Domino’s (DMP)
- Nine Entertainment (NEC)
Mid- and small-cap companies releasing results include Adairs, EML Payments, Duratec, ReadyTech, Paragon Care and Weebit Nano, among many others.
Investors will also be watching “day two” moves after Coles’ 8.5% rally yesterday, as well as follow-through in smaller names such as Integral Diagnostics, SKS Technologies and Symal, which all jumped on clean beats.
What’s on today
Locally, the July monthly CPI indicator is released at 11:30 am AEST alongside Q2 construction work data. Both could shape expectations around the Reserve Bank’s next move, with rate cuts already on the table.
In early small caps action this morning, Far East Gold Ltd (ASX:FEG) has reported new gold-bearing zones at the North Bermol prospect, about 1.5 kilometres from current drilling at Bermol within its Idenburg Project in Papua. The company said the results expand the high-grade potential of the project and open new targets for ongoing drilling.
Overseas, all eyes remain on Nvidia’s earnings due tonight US time — an event likely to set the tone for global tech sentiment.