Good morning. Wall Street fell overnight as investors stepped back from the artificial intelligence and chip trade. The S&P 500 closed down 0.5 per cent at 7,534 and the Nasdaq lost 1.5 per cent to 25,882, with the Dow off 0.2 per cent at 52,553. Semiconductors led the retreat even after Taiwan Semiconductor beat expectations and lifted its outlook, and Alphabet fell more than 4 per cent on a report that its Gemini 3.5 Pro model has been delayed. Netflix slid about 9 per cent after its results as it trimmed its full-year margin guidance. The VIX rose 6.8 per cent to 16.73. The 10-year Treasury yield rose 2 basis points to 4.57 per cent and the US dollar firmed after weekly jobless claims fell to 208,000 and June retail sales rose 0.2 per cent. Dallas Federal Reserve president Lorie Logan argued for modestly higher rates. Gold fell 1.6 per cent to US$3,980, back below US$4,000, while Brent held at US$84.86 a barrel.
Locally, the ASX 200 finished the prior session unchanged at 8,841, up 0.9 per cent over five days, with the banks higher and the miners lower. BHP fell as it flagged a softer copper outlook and faced the first strike at its Port Hedland iron ore hub since 2000, with about 200 electrical and maintenance workers walking off over pay parity. AMP was the standout, rising close to 10 per cent after upgrading its first-half profit guidance. The Australian dollar eased 0.2 per cent to US69.97 cents and the 10-year government bond yield rose 6 basis points to 4.89 per cent.
The day's corporate news ran through technology and industry. Taiwan Semiconductor added US$100bn to its US investment plan, GE Aerospace and several US banks reported strong quarters, and the United Kingdom took British Steel into public ownership. The standoff over the Strait of Hormuz stayed in the background of the oil market, with Iran rejecting a proposed US toll on cargo passing through the strait.
The ASX 200 closed the prior session unchanged at 8,841, up 0.9 per cent over five days. Financials rose about 0.9 per cent while materials fell about 1.6 per cent, with BHP weighed by a softer copper outlook, and energy lost around 1.5 per cent. The Australian dollar eased 0.2 per cent to US69.97 cents and the 10-year government bond yield rose 6 basis points to 4.89 per cent, up 63 basis points over the past year. Iron ore held at US$98.88 a tonne.
The S&P 500 fell 0.5 per cent to 7,534 and the Nasdaq 1.5 per cent to 25,882, with the Dow down 0.2 per cent at 52,553, as semiconductors sold off despite a strong Taiwan Semiconductor result. The 10-year Treasury yield rose 2 basis points to 4.57 per cent while the 2-year fell 5 basis points to 4.13 per cent, and the US dollar index gained 0.2 per cent to 100.73 after jobless claims fell to 208,000. Gold dropped 1.6 per cent to US$3,980 and the VIX rose 6.8 per cent to 16.73.
The Stoxx 600 edged up 0.2 per cent to 644 and the FTSE 100 rose 0.5 per cent to 10,572, while the DAX slipped 0.3 per cent to 24,915. The United Kingdom took British Steel into public ownership to protect about 33,000 jobs, and official data showed the UK economy grew 0.1 per cent in May.
The Nikkei 225 fell 2.8 per cent to 66,836, led lower by technology names, while the Hang Seng rose 1.3 per cent to 25,009 and the Shanghai Composite fell 1.8 per cent to 3,882. The yen was weaker, with the US dollar buying 162.34 yen.
The Australian dollar eased 0.2 per cent to US69.97 cents on the day, though it remains 0.8 per cent higher over five sessions and 7.2 per cent higher over the past year.
Every birth cohort since the mid-1950s has entered each age bracket with lower ownership than the one before, with 25 to 29 year-olds now around 18 percentage points below the post-war generation.
The cash rate is 50 basis points higher than a year ago; the next RBA board meeting is scheduled for 11 August.
The pick-up came as the ASX 200 closed the session unchanged at 8,841.
The index held above 8,800 and is up 0.9 per cent over five sessions and 3.3 per cent over the past year.
The price is up 2.5 per cent over the past year and was little changed over the past five sessions.
The changes reduce the value of loyalty schemes as issuers reset their economics before the surcharge rules take effect.
Retail sales slowed from an upwardly revised 1.0 per cent in May, and the resilient labour data supported a firmer US dollar, the DXY up 0.2 per cent to 100.73.
Logan cited a solid labour market, with unemployment averaging 4.3 per cent in the first half and job gains of about 92,000 a month; Fed chair Kevin Warsh told Congress this week the central bank has no tolerance for persistently elevated inflation.
The average 30-year fixed mortgage rate rose to 6.55 per cent, the highest since August 2025.
Brent crude was little changed at US$84.86 a barrel, holding an 11.2 per cent gain over five sessions, while West Texas Intermediate eased 0.9 per cent to US$78.89 and copper slipped 0.2 per cent to US$13,852 a tonne.
The Stoxx 600 rose 0.2 per cent to 644 and the FTSE 100 gained 0.5 per cent to 10,572, while the DAX slipped 0.3 per cent to 24,915.
Google objected on privacy grounds; the order applies in the European Union, not the United States.
The global financial-crime watchdog made the assessment in its latest review of virtual assets and illicit finance.
The measures aim to limit retail exposure to leveraged and complex products.
The rise adds to fuel-cost pressure that risks feeding back into inflation.
The gauge remains 2.5 per cent lower than a year ago despite the day's move.
The pullback points to more cautious discretionary spending even as headline retail sales rose 0.2 per cent in June.
The Combined BHP Ports Unions coalition is pressing for pay parity, citing a gap of up to A$40,000 a year for identical roles after six months of failed bargaining. Port Hedland ships around A$150m of iron ore a day.
The new range compares with A$131m in the prior corresponding half, an increase of about 30 to 37 per cent at the midpoint.
More than 600 emergency calls failed during the outage, which the company traced to a faulty software update; penalties of up to A$30m have been flagged.
The sale marks a fresh write-down for lower-grade city office assets, four years after the building last changed hands.
The move extended a monthly decline of roughly 6 per cent, with materials the weakest ASX 200 sector at around minus 1.6 per cent.
Cochlear shares are down about 52 per cent so far in 2026 after the company cut its full-year profit guidance earlier in the year.
Two committed developments, a 280MW solar plant near Whyalla and a 100MW battery near Port Augusta, failed to reach financing before the company entered administration.
The company said the work would contribute revenue across the 2027 and 2028 financial years, with pre-mobilisation starting immediately.
The 2,169-bed facility is the region's largest transient worker village, and Fleetwood estimated it would add A$10m to A$20m of annualised earnings before interest and tax.
The orders cover 67 conversions and lift the company's US order book to 87 conversions, though most remain conditional on Californian incentive grants.
The tranche completes the capital raising the company first announced to fund exploration and working capital.
The action follows a series of protests targeting the energy producer's Western Australian operations.
The increase adds to cost pressure on households already facing higher streaming and pay-television bills.
The operating margin was 33.4 per cent in the quarter, down from 34.1 per cent a year earlier, and the company said it would provide fewer engagement updates.
The company reported second-quarter net profit up 77 per cent to about T$707bn, raised its full-year revenue-growth guidance to more than 40 per cent, and lifted 2026 capital spending to between US$60bn and US$64bn.
The report said the model had fallen short of internal goals, particularly on coding, adding to pressure on the AI and chip trade that dragged the Nasdaq down 1.5 per cent.
Operating profit grew 18 per cent and earnings per share 22 per cent, with the company reporting a total backlog of more than US$210bn.
Revenue grew 10.1 per cent, the return on tangible common equity was 18.7 per cent, and the bank completed its acquisition of broker BTIG, which added about US$98m of fee revenue in June.
The company expects its 2026 Medicare medical-cost trend to come in below its earlier estimate of around 10 per cent, while commercial cost trends are running modestly above 11 per cent.
The deal is the market maker's first outside investment in a crypto exchange.
The deal would extend the French software group further into life-sciences and healthcare applications.
Adjusted earnings of US$2.12 a share were up about 51 per cent on the prior quarter; the Wall Street Journal reported the company cut its full-year alumina production guidance.
The government said the move protects about 33,000 direct jobs and keeps the company's blast furnaces running.
The result adds to signs of steadier demand across the Indian IT-services sector.
The plan is one of several pipeline projects aimed at reducing Gulf exporters' reliance on the contested strait.
The results follow record or near-record revenue reported this week by several of the biggest US lenders.
A listing would be among the biggest tests yet of investor appetite for a pure-play AI developer.
The move adds to competition in large language models as Western developers race to release upgrades.
“Better modest restriction now than severe restriction later. If inflation is not heading all the way to 2 per cent on its own, then at least some policy restriction is needed to help get it there.”
“Commercial costs are stubbornly high, rising above expectations, with medical cost trends modestly above the 11 per cent level we previously saw.”
“AI is a force multiplier for FLIGHT DECK. Using AI to automate the process, we cut the number of demand signals in half and reduced processing time by nearly 90 per cent across 190 parts.”
“Key credit quality metrics improved both sequentially and year over year, reflecting a stable economic backdrop and the continued fortitude of our clients.”
“20 per cent is of course too much. We will be fair.”
“Aftermarket demand has been resilient, and we expect a gradual return to modest departures growth in the second half. The LEAP installed base is expected to more than double between now and 2030.”
For wholesale clients only. Prepared by Arc Point OCIO Pty Ltd (ACN 693 569 765), Corporate Authorised Representative (CAR 1319046) of Capella Advisory (AFSL 550125), for wholesale clients within the meaning of the Corporations Act 2001 (Cth); it is not intended for, and should not be relied on by, retail clients. This note is factual market reporting and general information, with any arcpoint view clearly labelled as such. It is not personal advice and does not take into account any person's objectives, financial situation or needs. Information is drawn from sources believed to be reliable but its accuracy and completeness are not guaranteed. Past performance is not a reliable indicator of future performance.
Sources: Yahoo Finance, FRED, RBA, company filings.