Author Archives: Atchison

Soft Friday locks-in poor week for local market

The S&P/ASX 200 Index (ASX: XJO), the Australian sharemarket’s benchmark, gave up 42.5 points, or 0.5 per cent, to 8,666.9 on Friday, marking a 1 per cent slide for the week – its worst weekly performance since a 3.9 per cent decline in the first week of April. The broader All Ordinaries Index (ASX: XAO) retreated 45.1 points, or 0.5 per cent, to 8,934.3 on Friday, to be down 0.8 per cent for the week.

Hawkish comments from Reserve Bank of Australia governor Michele Bullock on Thursday led to a shift in interest-rate cut expectations, with the market appearing to price in two full 25 basis-point cuts this year, possibly in August and November.

Six of the ASX’s 11 sectors finished lower and two closed higher on Friday, with industrials, telecommunications and utilities all effectively flat.

Banks weak, Newmont and Woodside surge

The big four banks continued to lose ground, with Westpac Banking Corporation (ASX: WBC) falling 26 cents, or 0.8 per cent, to $33.03; Australia and New Zealand Banking Group Limited (ASX: ANZ) slipping 22 cents, or 0.7 per cent, to $30.22; Commonwealth Bank of Australia (ASX: CBA) receding 60 cents, or 0.4 per cent, to $172.87; and National Australia Bank Limited (ASX: NAB) walking back 15 cents, also 0.4 per cent, to $37.51.

The big miners were also disappointing, with BHP Group Limited (ASX: BHP) sliding 80 cents, or 1.9 per cent, to $40.80; Fortescue Ltd (ASX: FMG) giving up 65 cents, or 3.4 per cent, to $18.35; and Rio Tinto Limited (ASX: RIO) subsiding $1.00, or 0.8 per cent, to $118.86. The goldminers were also mostly lower, with the exception being heavyweight Newmont Corporation (NYSE: NEM), which rose $3.50, or 3.8 per cent, after a solid quarterly report. Energy did well, largely on the back of Woodside Energy Group Ltd (ASX: WDS), which rose 94 cents, or 3.7 per cent, to $26.20. Santos Limited (ASX: STO) moved 8 cents, or 0.5 per cent, higher to $7.78.

Yawn, another record close for the S&P 500, Nasdaq

In the US, the broad S&P 500 Index (INDEXSP: .INX) advanced 25.29 points, or 0.4 per cent, to notch its 14th record close of the year at 6,388.64, with Friday marking a fifth consecutive day of closing records for the S&P 500. The tech-heavy Nasdaq Composite Index (INDEXNASDAQ: .IXIC) went one better, gaining 50.36 points, or 0.2 per cent, ending at 21,108.32 for its 15th record close in 2025. Both indices also touched fresh new all-time intraday highs during the trading day. The 30-stock Dow Jones Industrial Average (INDEXDJX: .DJI) added 208.01 points, or 0.5 per cent, to close at 44,901.92, a smidgen away from its record close of 45,014.04, achieved on December 4 last year.

All three major gauges finished the week with gains: the S&P 500 Index (INDEXSP: .INX) gained about 1.5 per cent; the Dow Jones Industrial Average (INDEXDJX: .DJI) posted a 1.3 per cent advance; and the Nasdaq Composite Index (INDEXNASDAQ: .IXIC) rose 1 per cent.

The indices were helped by what has been a strong second-quarter earnings season so far, including Alphabet Inc. (NASDAQ: GOOGL)’s better-than-expected report. Verizon Communications Inc. (NYSE: VZ) shares also jumped after the telecommunications company’s results surpassed expectations. For the week, Alphabet Inc. (NASDAQ: GOOGL) lifted 4 per cent and Verizon Communications Inc. (NYSE: VZ) put on 5 per cent. More than 82 per cent of the 169 S&P 500 Index (INDEXSP: .INX) companies that have reported to date have beaten Wall Street’s expectations, according to FactSet Research Systems Inc. (NYSE: FDS) data.

Iron ore rally not enough to offset healthcare losses, All Ords falls on Friday, Block surges, QBE tanks on profit concerns

The local market finished the week with a weaker tone, falling 0.3 per cent as strength in the materials sector, up 1.4 per cent, was not enough to overcome broader weakness. Fortescue Metals Group Limited (ASX: FMG) was the first company to obtain a 3 billion dollar syndicated loan from China, with shares rallying 1.8 per cent on the news, alongside an improving iron ore price. The healthcare sector remains under pressure, as Pro Medicus Limited (ASX: PME) fell 3.6 per cent amid a broader rotation out of quality and into cyclical companies. Insurer QBE Insurance Group Limited (ASX: QBE) delivered a solid profit result, with management on track to hit 1.6 billion dollars for the full year; however, shares tanked by more than 8 per cent as analysts questioned the treatment of prior year’s reserves and their contribution to profit. Block Inc (ASX: SQ2), owner of Afterpay, gained 8.3 per cent as the company delivered record income for the quarter, with gross profit up 14 per cent on the prior quarter amid US growth in Afterpay. Fund manager GQG Partners Inc (ASX: GQG) suffered a near 15 per cent drop as the company flagged the loss of a 1 billion US dollar mandate, albeit on a pool exceeding 150 billion US dollars. Shares in XPLAN provider Iress Limited (ASX: IRE) also gained strongly, as the company benefited from a stalled takeover bid by private equity giant Blackstone Inc (NYSE: BX), with shares gaining 12 per cent on the news. The S&P/ASX 200 Index (ASX: XJO) managed a 1.7 per cent gain for the week, led by the materials and retailing sectors.

Nasdaq surges to record high, Apple has best week since 2020, Fannie Mae, Freddie Mac to issue shares

The technology sector continued to defy expectations, with the NASDAQ Composite Index (NASDAQ: IXIC)outperforming on Friday, gaining 1 per cent and taking the weekly gain to just under 4 per cent. Apple Inc (NASDAQ: AAPL) surged another 4 per cent on the back of its announcement of plans to spend 100 billion US dollars in domestic manufacturing capabilities — its best week since 2020. The S&P 500 Index (NYSE: SPX) and the Dow Jones Industrial Average (INDEXDJX: DJI) followed, adding 0.5 and 0.8 per cent respectively, but sentiment remains positive amid conversations between the US and Russia seeking to end the Ukraine–Russia war. Lending institutions Fannie Mae and Freddie Mac are set to issue shares once again as they continue their return post-GFC. Meta Platforms Inc (NASDAQ: META) has reportedly funded its 29 billion US dollar data centre expansion with the help of fixed income giant PIMCO and Blue Owl Capital Inc (NYSE: OBDC), while SoftBank Group Corp (TYO: 9984) is buying the Foxconn EV plant to convert it into its own Stargate data centre project. Expedia Group Inc (NASDAQ: EXPE) surged more than 4 per cent after flagging stronger than expected US bookings.

Australian indices move higher in tight embrace

The two main Australian indices tracked each other very closely on Wednesday. The benchmark S&P/ASX 200 Index (ASX: XJO) rose 60 points, or 0.7 per cent, to 8737.20, after touching a fresh intra-day high of 8,746.7; while the broader All Ordinaries Index (ASX: XAO) was elevated 59.9 points by the close, also 0.7 per cent, to 9,001.40. Ten of the 11 sectors finished in the green, with utilities the only laggard.

Materials led the market, up 1.2 per cent, with the major miners all higher on the back of Singapore iron ore futures rising 2.2 per cent to $US105.65 per tonne – the highest level for the commodity in five months, boosted by China’s reforms for the steel industry and plans for a massive dam project in Tibet. BHP Group Limited (ASX: BHP) advanced 34 cents, or 0.8 per cent, to $41.85; Rio Tinto Group (ASX: RIO) gained $1.15, or 1 per cent, to $119.47; and Fortescue Ltd (ASX: FMG) firmed 40 cents, or 2.2 per cent, to $18.21. In oil and gas, Woodside Energy Group Ltd (ASX: WDS) rose 36 cents, or 1.5 per cent, to $25.21, after beating expectations with its second-quarter revenue, however, the energy heavyweight downplayed its 2025 outlook.

Paladin Energy Limited (ASX: PDN), a Namibia-based uranium producer, slumped 92 cents, or 11.3 per cent, to $7.25, despite its Langer Heinrich mine enjoying a 33 per cent jump in quarterly production, hitting record crusher throughput. But full-year production guidance fell short of expectations, and the company flagged higher costs than what analysts were expecting. In coal, Whitehaven Coal Limited (ASX: WHC) rose 44 cents, or 6.5 per cent, to $7.18; Yancoal Australia Ltd (ASX: YAL) lifted 18 cents, or 2.8 per cent, to $6.58; and New Hope Corporation Limited (ASX: NHC) added 9 cents, or 2.1 per cent, to $4.38.

In gold, Ramelius Resources Limited (ASX: RMS) jumped 12 cents, or 4.5 per cent, to $2.78; Newmont Corporation (NYSE: NEM) was up $1.70, or 1.9 per cent, to $93.70; Genesis Minerals Limited (ASX: GMD) gained 5 cents, or 1.2 per cent, to $4.12; and Northern Star Resources Ltd (ASX: NST) finished 18 cents, or 1.1 per cent, to the good, at $16.67. Mineral sands miner Iluka Resources Limited (ASX: ILU) advanced 21 cents, or 4 per cent, to $5.39.

SEC blindsides Telix

On the industrial screens, cancer imaging company Telix Pharmaceuticals Limited (ASX: TLX) was pounded after announcing that it had been subpoenaed by the US Securities and Exchange Commission (SEC) over disclosures relating to the development of its prostate cancer therapeutic candidates. Telix lost $3.80, or 15.1 per cent, to $21.32, taking the stock back to where it was in November. Telix said it is fully cooperating with the US regulator and is in the process of responding; at this stage, the matter is a “fact-finding” request. Biotech heavyweight CSL Limited (ASX: CSL) gained $1.55, or 0.6 per cent, to $265.50.

Most of the major banks rose, with Australia and New Zealand Banking Group Limited (ASX: ANZ) up 75 cents, or 2.5 per cent, to $30.57; Westpac Banking Corporation (ASX: WBC) gained 46 cents, or 1.4 per cent, to $33.11; and Commonwealth Bank of Australia (ASX: CBA) turning early-day weakness into a rise of 88 cents, or 0.5 per cent, to $173.30. But National Australia Bank Limited (ASX: NAB) softened 2 cents, to $37.20.

Boldly going where no tech index has gone before

In the United States, the highlight of the Wednesday session was the tech-heavy Nasdaq Composite Index (NASDAQ: IXIC) closing above the 21,000 level for the first time. The tech gauge put on 127.33 points, or 0.6 per cent, and closed at 21,020.02. The benchmark S&P 500 Index (NYSE: SPX) added 49.29 points, or 0.8 per cent, to hit its 12th record close of the year, at 6,358.91. The 30-stock Dow Jones Industrial Average (NYSE: DJI) lifted 507.85 points, or 1.1 per cent, to 45,010.29, just four points away from a new record close.

The impetus for the indices came from positive developments on the trade front this week. The United States and Japan have reached a trade deal, with 15 per cent “reciprocal” tariffs on goods from the nation, below the US’ initial gambit of 25 per cent. Reports also came in that the United States and the European Union were making progress toward a similar deal.

After the close, megacap stocks Alphabet Inc. (NASDAQ: GOOGL) and Tesla Inc. (NASDAQ: TSLA) reported their second-quarter earnings. Alphabet beat both revenue and earnings expectations, and the stock rose 2 per cent in after-hours trading; Tesla disappointed investors with a fall in automobile revenue for the second consecutive quarter, and after-hours trading initially saw the stock slip 3 per cent.

CBA slides but local market quietly pushes higher

It was a positive session for the Australian share market on Tuesday, but not exactly a roaring bull. The benchmark S&P/ASX 200 Index (ASX: XJO) eked out a gain of 9 points, or 0.1 per cent, to 8,677, while the broader All Ordinaries Index (ASX: XAO) did slightly better, accruing 15.3 points, or 0.2 per cent, to 8,941. The benchmark index was affected by heavyweight Commonwealth Bank of Australia (ASX: CBA) sliding $5.45, or 3.1 per cent, to $172.42: Commonwealth Bank of Australia (ASX: CBA) is still up 12.5 per cent for the year, but has dropped 10.2 per cent since hitting a record high last month.

The other big four banks also retreated, with National Australia Bank Limited (ASX: NAB) easing $1.03, or 2.7 per cent to $37.22; Westpac Banking Corporation (ASX: WBC) losing 42 cents, or 1.3 per cent, to $32.65; and Australia and New Zealand Banking Group Limited (ASX: ANZ) ceding 23 cents, or 0.8 per cent, to $29.82.

Elsewhere in the financial sector, Insignia Financial Limited (ASX: IFL) soared 48 cents, or 12.2 per cent, to $4.41 after the former IOOF Holdings Limited agreed to be bought by a US-based private equity firm for $3.2 billion.

Biotech heavyweight CSL Limited (ASX: CSL) lifted $8.64, or 3.4 per cent, to $263.95, and has now gained 9.6 per cent in the past month. However, CSL Limited (ASX: CSL) is down 14.6 per cent in the last 12 months.

Resources lead market

The financial sector was the worst-performing sub-index, dropping 1.7 per cent, while the materials/mining sector topped the table, rising 2.4 per cent. BHP Group Limited (ASX: BHP) gained $1.05, or 2.6 per cent, to $41.51; Fortescue Ltd (ASX: FMG) strengthened 56 cents, or 3.3 per cent, to $17.81; and Rio Tinto Limited (ASX: RIO)put on $3.86, or 3.4 per cent, to $118.32.

Goldminers were also keenly sought, led by West African Resources Limited (ASX: WAF), which jumped 19 cents, or 8.6 per cent, to $2.40. Spartan Resources Limited (ASX: SPR) rose 16.5 cents, or 8.4 per cent, to $2.13 on its last day of trading on the ASX before it is taken over by fellow gold producer Ramelius Resources Limited (ASX: RMS) in a $2.4 billion cash-and-scrip transaction.

For its part, Ramelius Resources Limited (ASX: RMS) gained 20 cents, or 8.1 per cent, to $2.66; while Genesis Minerals Limited (ASX: GMD) lifted 20 cents, or 5.2 per cent, to $4.07; Westgold Resources Limited (ASX: WGX)spiked 13 cents, or 4.8 per cent, to $2.86; Capricorn Metals Ltd (ASX: CMM) leapt 42 cents, or 4.6 per cent, to $9.61; and Perseus Mining Limited (ASX: PRU) gained 14 cents, or 4 per cent, to $3.67.

Lithium producer Pilbara Minerals Limited (ASX: PLS) advanced 9.5 cents, or 5.3 per cent, to $1.88; and IGO Limited (ASX: IGO), which mines nickel and lithium, gained 25 cents, or 5 per cent, to $5.03. But after a strong day yesterday, lithium producer Liontown Resources Limited (ASX: LTR) lost 6.5 cents, or 6.3 per cent, to 97 cents.

Yancoal Australia Ltd (ASX: YAL) was up 32 cents, or 5.3 per cent, to $6.40, while Whitehaven Coal Limited (ASX: WHC) added 32 cents, or 5 per cent, to $6.74. Canadian-based Champion Iron Limited (ASX: CIA) firmed 25 cents, or 5.2 per cent, to $5.07 after it signed an agreement with Nippon Steel Corporation (TYO: 5401) and Sojitz Corporation (TYO: 2768) to form a partnership for the development of its Kami iron ore project in Canada.

Second-quarter tech earnings poised to flow

In the US, the broad S&P 500 Index (NYSEARCA: SPY) notched its second consecutive record-high close, inching ahead by 4.02 points to 6,309.62, rounding-up (barely) to 0.1 per cent. This was the 11th closing record of 2025 for the benchmark index.

The tech-heavy Nasdaq Composite Index (NASDAQ: IXIC), which recorded a record close in the Monday session, couldn’t follow suit, retreating 81.49 points, or 0.4 per cent, to 20,892.69, while the blue-chip Dow Jones Industrial Average (INDEXDJX: DJI) climbed 179.37 points, or 0.4 per cent, to 44,502.44.

The second-quarter earnings season is well under way, but tonight in the US the closely watched tech earnings start to flow, with results from Alphabet Inc. (NASDAQ: GOOGL) and Tesla Inc. (NASDAQ: TSLA), followed by Meta Platforms Inc. (NASDAQ: META), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) next week.

President Trump’s tariffs and AI spending were the big topics last quarter and remain top of mind for investors. The tariff effect was shown overnight by General Motors Company (NYSE: GM), which reported a 35.4 per cent slide in second-quarter profit to US$1.9 billion, with the fall being exacerbated by a US$1.1 billion hit from the tariffs. Notwithstanding the tariff impact, General Motors Company (NYSE: GM) reaffirmed its full-year profit forecast and cited strong sales of its trucks and “sports” utility vehicles. Even with the impact of the tariffs, General Motors Company (NYSE: GM) still managed to beat analysts’ forecasts handily.

Worst day for three months takes Australian benchmark lower

It was the dirtiest day in three months for the Australian share market on Monday, with the benchmark S&P/ASX 200 Index (ASX: XJO) sinking 89 points, or 1 per cent, to 8,668.2, while the broader All Ordinaries Index (ASX: XAO)lost 80.6 points, or 0.9 per cent, to 8,926.2.

Nine of the Australian Securities Exchange’s (ASX) 11 sectors lost ground, with the leading lights being energy, which gained 1.2 per cent, and materials, which added up 0.3 per cent, helped by more positive sentiment around China. Energy was led by coal heavyweight Whitehaven Coal Limited (ASX: WHC), which surged 25 cents, or 4 per cent, to $6.42; in the same cohort, New Hope Corporation Limited (ASX: NHC) added 10 cents, or 2.5 per cent, to $4.16; Yancoal Australia Limited (ASX: YAL) gained 24 cents, or 4.1 per cent, to $6.08; and Stanmore Resources Limited (ASX: SMR) ended up 8 cents, or 3.7 per cent, to $2.25. Woodside Energy Group Limited (ASX: WDS)also played a part, putting on 35 cents, or 1.4 per cent, to $24.75; and Brazilian-based oil and gas producer Karoon Energy Limited (ASX: KAR) gained 3.5 cents, or 1.8 per cent, to $1.965.

Materials was helped by its leaders, with BHP Group Limited (ASX: BHP) lifting 17 cents, or 0.4 per cent, to $40.46; Rio Tinto Limited (ASX: RIO) firming $1.35, or 1.2 per cent, to $114.46; Fortescue Limited (ASX: FMG) adding 25 cents, or 1.5 per cent, to $17.25; and South32 Limited (ASX: S32) gaining 13 cents, or 4.5 per cent, to $3.02. Lithium stock Liontown Resources Limited (ASX: LTR) provided a resources highlight, spiking 10.5 cents, or 11.3 per cent, to $1.03, while Mineral Resources Limited (ASX: MIN), which mines lithium and iron ore, moved 91 cents, or 3.1 per cent, higher to $29.99.

Every AMP has its day

The financial sector was the lead in the market’s saddlebags, retreating 2.3 per cent as the big retail banks came off. Westpac Banking Corporation (ASX: WBC) led them lower, softening $1.24, or 3.6 per cent, to $33.07; while Australia and New Zealand Banking Group Limited (ASX: ANZ) lost 77 cents, or 2.5 per cent, to $30.05; Commonwealth Bank of Australia (ASX: CBA) retreated $4.59, or 2.5 per cent, to $177.87; and National Australia Bank Limited (ASX: NAB) slipped 94 cents, or 2.4 per cent, to $38.25.

But AMP Limited (ASX: AMP) spiked 15 cents, or 9.8 per cent, to a five-month high of $1.685 after reporting its first quarter of positive cashflows into its superannuation business since the second quarter of 2017, at the height of the share price turmoil resulting from the company’s mauling by the financial services Royal Commission.

Two out of three record highs ain’t bad

In the US, the broad S&P 500 Index (NYSE: SPX) advanced 8.81 points, or 0.1 per cent, to 6,305.6, and the tech-laden Nasdaq Composite Index (NASDAQ: IXIC) lifted 78.52 points, or 0.4 per cent, to 20,974.17, with both indices closing at record highs. But the 30-stock Dow Jones Industrial Average (NYSE: DJI) receded 19.12 points, to 44,323.07.

Investors are dialling-in to a big week for second-quarter financial results. So far, more than 60 S&P 500 Index (NYSE: SPX) companies have reported, with more than 85 per cent of those beating analysts’ estimates, according to FactSet Research Systems Inc. (NYSE: FDS).

ASX extends record streak with strongest weekly rise since May

The Australian sharemarket capped a strong week with the S&P/ASX 200 Index (ASX: XJO) surging 118.2 points, or 1.4 per cent, to close at 8757.20 on Friday. This marked its best single-day gain since April 10, and third record close of the week, bolstered by a rally in CSL Limited (ASX: CSL), and commodity optimism from BHP Group Limited (ASX: BHP). For the week, the index advanced 2.1 per cent. BHP’s share price rose 3 per cent to $40.29 following strong production figures, including record copper output and steady performance in iron ore despite earlier weather setbacks.

Healthcare leads as CSL shines and sentiment remains strong

Investor sentiment remained buoyant with all 11 sectors finishing in positive territory. Healthcare stood out, led by CSL Limited (ASX: CSL), which jumped 3.6 per cent to $257.38, and gained 7 per cent over the week after UBS Group AG (SWX: UBSG) reaffirmed its buy rating and $310 price target. Mesoblast Limited (ASX: MSB) soared 34.7 per cent following early commercial success of its Ryoncil therapy. Meanwhile, Virgin Australia Group Limited (ASX: VAH) rose 1.9 per cent after receiving a buy rating from UBS, and Atlas Arteria Group (ASX: ALX) dipped slightly following a legal setback in the United States.

Global outlook remains cautious amid ECB uncertainty

Globally, investor focus remained on central bank policy, particularly in Europe. A Bloomberg survey indicated that the European Central Bank (ECB) may delay its final interest rate cut to December, with economists split on the timing amid trade-related uncertainties. ECB officials including Christine Lagarde and Isabel Schnabel expressed cautious optimism, though inflation concerns persist. The S&P 500 Index (NYSE: SPX) slipped marginally on Friday. The modest decline came amid mixed corporate earnings and renewed trade concerns, particularly over fresh tariffs on European imports, which added to market caution. While strong results from financial firms such as Charles Schwab Corporation (NYSE: SCHW) and Regions Financial Corporation (NYSE: RF) lent some support, declines in major consumer and industrial names, including American Express Company (NYSE: AXP) and 3M Company (NYSE: MMM), pressured broader sentiment. A sell-off in Netflix Inc. (NASDAQ: NFLX) shares, which fell around 5 per cent despite beating expectations, further dampened the market. Overall, the session reflected a balancing act between positive economic indicators and corporate updates, against a backdrop of geopolitical and trade-related uncertainty.

ASX surges to record on rate cut hopes

The Australian sharemarket rallied to a fresh all-time high as a surprise uptick in the unemployment rate to 4.3 per cent fuelled expectations of a potential interest rate cut by the Reserve Bank of Australia next month. The S&P/ASX 200 Index (ASX: XJO) jumped 0.9 per cent to close at a new peak of 8639, recovering from Wednesday’s sharp loss and surpassing Tuesday’s record. All 11 sectors rose, led by strong performances from property and financial stocks, which are typically sensitive to interest rate changes. The All Ordinaries Index (ASX: XAO) also added 0.8 per cent.

Financials, property, and technology rally

Market optimism grew as bond traders increased the probability of a rate cut at the Reserve Bank’s August 12 meeting to 94 per cent. The three-year government bond yield dropped 5 basis points to 3.45 per cent, while the Australian dollar declined to US64.83¢. Major banks, which had lagged on Wednesday, led gains with Commonwealth Bank of Australia (ASX: CBA) climbing 1.8 per cent, and Westpac Banking Corporation (ASX: WBC), Australia and New Zealand Banking Group Limited (ASX: ANZ), and National Australia Bank Limited (ASX: NAB) each rising over 1 per cent. Property stocks including Mirvac Group (ASX: MGR) and Scentre Group (ASX: SCG) also rallied. Tech names such as Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO)performed strongly, while lithium producers like Pilbara Minerals Limited (ASX: PLS) also posted solid gains.

Global markets lift on economic data and tech strength

On Wall Street, both the S&P 500 Index (NYSE: SPX) and Nasdaq Composite Index (NASDAQ: IXIC) reached new record highs, driven by robust retail sales and falling jobless claims. Tech stocks led the rally after Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) issued a positive outlook that bolstered sentiment in AI-related investments. Comments from San Francisco Federal Reserve President Mary Daly indicated potential for two rate cuts this year, while Federal Reserve Governor Adriana Kugler urged caution due to inflation concerns. Meanwhile, President Donald Trump moved to impose new tariffs ranging from 20 to 40 per cent on over 20 trade partners. In corporate developments, United Airlines Holdings Inc (NASDAQ: UAL)forecast a more predictable second half of 2025, and Chevron Corporation (NYSE: CVX) signalled increased cash flow as it nears peak production in the Permian Basin.

ASX retreats as banks and materials weigh on sentiment
The Australian share market experienced its steepest one-day drop since May, as investor sentiment soured on the back of persistent US inflation and renewed tariff concerns. The S&P/ASX 200 Index (ASX: XJO) declined by 0.8 per cent to close at 8561.80, retreating from record highs. Market analyst Tony Sycamore from IG Group Holdings plc (LON: IGG)cautioned that a further slip below the 8530–8510 range could trigger a deeper correction toward the 200-day moving average near 8250. Banks led the downturn, with National Australia Bank Limited (ASX: NAB) sliding 3.4 per cent despite internal board support for its CEO. Westpac Banking Corporation (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group Limited (ASX: ANZ) also posted losses.

Materials and healthcare sectors under pressure
Market sentiment extended into the materials and healthcare sectors. Analysts from Citigroup Inc. (NYSE: C) advised caution on iron ore gains, suggesting speculative Chinese demand rather than strong fundamentals. Despite this, iron ore futures edged higher in Singapore, helping Rio Tinto Limited (ASX: RIO) close 0.2 per cent higher following robust Q2 production data. BHP Group Limited (ASX: BHP) fell 0.7 per cent, while CSL Limited (ASX: CSL) dropped 1.3 per cent amid renewed tariff threats on pharmaceuticals. Among individual movers, Megaport Limited (ASX: MP1) surged 6.3 per cent after a Macquarie upgrade. Iluka Resources Limited (ASX: ILU) added 4.3 per cent, boosted by a bullish outlook and industry developments. On the downside, Newmont Corporation (NYSE: NEM) fell 5.7 per cent after a leadership change and asset sales, while South32 Limited (ASX: S32) and Evolution Mining Limited (ASX: EVN) also posted notable declines.

Global markets remain cautious amid mixed signals
US markets showed caution as traders digested remarks from President Donald Trump and the latest Beige Book report highlighting persistent economic uncertainty. US producer prices were flat in June, while annual wholesale inflation eased to 2.3 per cent – its lowest since September. In corporate news, Tesla Inc. (NASDAQ: TSLA) is set to launch a six-seat version of its Model Y in China to regain competitive edge, and Johnson & Johnson (NYSE: JNJ) beat earnings expectations and raised its guidance despite industry headwinds. Meanwhile, ASML Holding N.V. (NASDAQ: ASML) CEO Christophe Fouquet trimmed sales growth projections for 2026 due to ongoing trade tensions and geopolitical uncertainties.

Tech and healthcare lead ASX to fresh highs

The Australian sharemarket climbed to a new record on Tuesday, driven by strong performances in the technology and healthcare sectors. The S&P/ASX 200 Index (ASX: XJO) gained 59.9 points, or 0.7 per cent, to close at 8630.3, with ten of the eleven sectors in positive territory. A strong GDP reading from China and optimism around trade talks helped fuel investor confidence. The tech sector followed gains in US Nasdaq futures, buoyed by NVIDIA Corporation (NASDAQ: NVDA)‘s announcement to resume AI chip sales to China. Standout performers included WiseTech Global Limited (ASX: WTC), Xero Limited (ASX: XRO), Life360 Inc. (ASX: 360), and Appen Limited (ASX: APX).

Iron ore slide hits miners despite broader rally

Healthcare names added momentum to the rally, with CSL Limited (ASX: CSL) and Pro Medicus Limited (ASX: PME) both posting notable gains. The major banks, including Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Limited (ASX: MQG), also saw gains. However, the materials sector lagged, pressured by a decline in iron ore prices after Chinese housing data revealed a continued slide in new home prices. This weighed on mining heavyweights BHP Group Limited (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). In corporate news, Hub24 Limited (ASX: HUB) jumped following strong fund inflow data, while Tyro Payments Limited (ASX: TYR) slumped on news of upcoming regulatory changes.

Global markets react to inflation and earnings

International markets closed mixed as investors weighed hotter-than-expected US inflation data and corporate earnings. The S&P 500 Index (NYSE: SPX) fell 0.4 per cent, the Dow Jones Industrial Average (NYSE: DJI) dropped 436 points or 1 per cent, while the Nasdaq 100 Index (NASDAQ: NDX) edged up 0.1 per cent near record levels, boosted by a 4 per cent jump in NVIDIA Corporation (NASDAQ: NVDA). The US Consumer Price Index rose 0.3 per cent month-on-month and 2.7 per cent year-on-year, intensifying concerns over potential inflationary pressures from proposed tariffs by President Trump. Among major banks, Wells Fargo & Co. (NYSE: WFC) and JPMorgan Chase & Co. (NYSE: JPM) declined after mixed results, while Citigroup Inc. (NYSE: C) advanced on strong earnings and a share buyback announcement.

ASX dips slightly as banks drag index

The Australian sharemarket edged lower on Monday, with the S&P/ASX 200 Index (ASX: XJO) slipping 9.7 points or 0.1 per cent to 8570.4, while the All Ordinaries Index (ASX: XAO) also eased 0.1 per cent to 8815.3. The decline was led by losses in the industrials and banking sectors, with Commonwealth Bank of Australia (ASX: CBA) down 0.4 per cent, while Westpac Banking Corporation (ASX: WBC)and Australia and New Zealand Banking Group Limited (ASX: ANZ) also ended the day lower. Tech stocks followed suit, with Zip Co Limited (ASX: ZIP) falling 2.8 per cent, Appen Limited (ASX: APX)down 3.2 per cent, and Block Inc (ASX: SQ2) dropping 5.3 per cent.

Gold and mining stocks lift amid tariff tensions

Gold miners on the ASX rallied in response to renewed tariff threats from US President Trump, which boosted demand for gold. Northern Star Resources Limited (ASX: NST) rose 1.7 per cent, Evolution Mining Limited (ASX: EVN) climbed 1.9 per cent, and Newmont Corporation (ASX: NEM) added 1.7 per cent. Rising iron ore prices also benefited mining heavyweights, with BHP Group Limited (ASX: BHP) up 0.9 per cent, Rio Tinto Limited (ASX: RIO) gaining 0.6 per cent, and Mineral Resources Limited (ASX: MIN) firming 1.5 per cent. Notable corporate moves included DroneShield Limited (ASX: DRO) surging 17 per cent on expansion plans, Abacus Storage King (ASX: ASK) jumping 5.8 per cent on a takeover offer, and Hansen Technologies Limited (ASX: HSN) rising 10.9 per cent on upgraded earnings guidance.

Global markets steady as tariffs loom

US markets closed slightly higher on Monday despite fresh tariff announcements from President Trump, who plans to implement 30 per cent duties on goods from the EU and Mexico starting August 1. The S&P 500 Index (NYSEARCA: SPY) edged up 0.1 per cent, the Dow Jones Industrial Average (INDEXDJX: DJI) rose by 88 points, and the Nasdaq Composite Index (NASDAQ: IXIC) gained 0.3 per cent, supported by strength in tech giants such as Meta Platforms Inc (NASDAQ: META) and Netflix Inc (NASDAQ: NFLX). Investors are awaiting key second-quarter earnings reports from banks like JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Company (NYSE: WFC), alongside the upcoming US CPI data for June. Among mega-cap names, Tesla Inc (NASDAQ: TSLA) rose 1 per cent after Elon Musk announced a shareholder vote on the company’s investment in xAI.