ASX 200 futures are down 20 points (-0.22%) as of 8:30 am AEST. Yesterday, the S&P/ASX 200 gained 26 points or 0.31% to finish at 8,830, marking its first positive session of the week. Financials led the rally, rising 1.32%, supported by telecommunications and real estate, while materials (-1.70%), energy (-0.10%) and utilities (-0.22%) dragged.
The banks were the main drivers, with investors rewarding cost-cutting moves. NAB confirmed 410 job cuts following ANZ’s 3,500 earlier in the week, which the market interpreted as shareholder-friendly. Westpac rose 1.7% to $38.29, ANZ gained 1.5% to $33.37, Commonwealth Bank added 1.48% to $168.54 and NAB climbed 1.47% to $43.41.
Lithium stocks plunged after China’s CATL confirmed its Jianxiawo mine would restart much earlier than the expected three-month shutdown. Liontown tumbled 18.42% to $0.77, Pilbara fell 17.29% to $1.98 and Iluka shed 14.22% to $5.55. Large miners also weakened after news of the US$80 billion Anglo American–Teck merger, set to reshape global copper supply. Sandfire dropped 2.23% to $12.25, Rio Tinto 2.03% to $114.57 and BHP 1.24% to $40.46.
US: Inflation cools as Oracle surges
Wall Street finished mixed to higher as softer producer price inflation raised expectations of imminent Federal Reserve cuts. The headline PPI fell 0.1% in August, taking the annual rate down to 2.6%. Core PPI also declined 0.1%, with annual inflation easing to 2.8%. The data bolstered confidence that the Fed will cut rates next week. Markets have priced in a 25 basis point move, with a 10% chance of a larger 50bp cut.
Donald Trump renewed pressure on Chair Jerome Powell to “lower the RATE, BIG, right now,” while Fed personnel issues added political tension. A federal judge blocked Trump’s attempt to remove Governor Cook, while the Senate Banking Committee advanced Stephen Miran’s nomination to the FOMC.
On the corporate front, Oracle shares surged 35.95% to US$328.33 after reporting a 359% increase in remaining performance obligations, driven by massive AI-related cloud contracts, including a US$300 billion deal with OpenAI. Analysts cautioned on execution risk given Oracle’s need to double its data centres and heavy competition from AWS and Azure.
Europe: Retail gains offset by tech weakness
European markets ended lower as strength in retail was overshadowed by weakness in technology. Inditex jumped 6.5% after reporting stronger August and early September sales, buoying sentiment in consumer stocks. However, technology names fell 1.6%, snapping a five-day winning streak.
The continent-wide FTSEurofirst 300 closed slightly down, while the UK FTSE 100 lost 0.2%. Investor caution was evident ahead of today’s European Central Bank decision, with markets seeking clarity on whether policymakers will continue to ease monetary policy in the face of subdued growth.
Currencies: Mixed moves against the dollar
Currency markets showed mixed performance against the US dollar.
- The euro rose from US$1.1686 to US$1.1729 before settling near US$1.1695 at the US close.
- The Australian dollar lifted from US65.94 cents to US66.35 cents, before easing back to US66.10 cents.
- The Japanese yen weakened from ¥147.20 to ¥147.61 per US dollar and was trading at ¥147.45 by the close.
Commodities: Oil and copper edge higher, gold steady
Global oil prices gained 1.7% despite a surprise build in US crude inventories, supported by geopolitical tensions including Israeli strikes, Polish drone interceptions and US sanction threats on Russian buyers. Brent crude added US$1.10 to US$67.49 a barrel, while WTI rose US$1.04 to US$63.67.
Base metals advanced as the weaker US dollar lifted sentiment. Copper futures gained 1.1% and aluminium added 0.1%. Gold futures were steady at US$3,682 an ounce, while spot gold was near US$3,639, supported by expectations of Fed cuts. Iron ore eased 0.3% to US$105.80 a tonne on profit-taking and softer Chinese inflation data.
Looking ahead: Central banks and corporate updates
In Australia, the Commonwealth Bank’s Household Spending Insights report is due, while several stocks — including Austal, Breville, Kogan.com, Nine Entertainment and Perpetual — trade ex-dividend.
In Europe, the European Central Bank will deliver its policy decision.
In the United States, attention will focus on consumer price index (CPI) data and weekly jobless claims. Corporate earnings from Adobe and Kroger will also be closely watched.