Good morning. Wall Street closed higher on Friday, with appetite for the artificial-intelligence trade still setting the tone. The S&P 500 rose 0.4 per cent to 7,575 and the Nasdaq added 0.3 per cent to 26,282, while the Dow gained 0.3 per cent to 52,637 and the VIX fell 5.1 per cent to 15.03. The debut of the day helped: South Korea's SK Hynix jumped 13 per cent on its first session of Nasdaq trading after raising US$26.5 billion, the largest first-time US listing by a foreign company. The bond market did not follow equities. The US 10-year Treasury yield rose 3 basis points to 4.57 per cent and is up 9 over the week, while the 2-year fell 5 basis points to 4.16 per cent, widening the gap between the two to about 41 basis points as investors marked down longer-dated technology debt against a wave of Big Tech borrowing.
Oil held near recent highs after President Donald Trump declared the ceasefire with Iran over and threatened fresh strikes. Brent eased 0.4 per cent to US$76.00 but is up 5.8 per cent over five sessions, and WTI settled at US$71.51. Corporate news ran hot. Apple sued OpenAI and two former employees, alleging a systematic theft of trade secrets as the AI company builds its first hardware device. The European Commission ordered Meta to strip addictive features such as infinite scroll and autoplay from Facebook and Instagram or face a fine of up to 6 per cent of global revenue. And German carmakers reported a sharp second-quarter sales drop, Volkswagen's deliveries down 8.6 per cent as its China volumes fell 36.6 per cent.
Locally, the ASX 200 closed Friday's session up 0.5 per cent at 8,806, though it finished the week 0.4 per cent lower, and the Australian dollar was at US69.55 cents, up 0.2 per cent. Corporate activity picked up. Ingenia Communities and Peet entered trading halts after confirming preliminary buyout talks, NextDC upsized its senior debt facilities to A$2.3 billion to fund data-centre growth, and Mesoblast reported US$115 million of full-year revenue from its cell therapy Ryoncil. Telstra faced a widening fallout from last week's national mobile outage, with the communications regulator opening a formal investigation. The RBA's Sarah Hunter used a speech to set out the sharper trade-offs that more frequent supply shocks are forcing on the board.
The ASX 200 closed Friday up 0.5 per cent at 8,806, paring the week to a 0.4 per cent loss, with the resources and gold names steady as bullion held near US$4,129 an ounce and iron ore sat at US$98.57 a tonne. The Australian dollar rose 0.2 per cent to US69.55 cents, and the 10-year Commonwealth government bond yield was 4.89 per cent, up 6 basis points on the day and 63 over the past year, with the RBA cash rate at 4.35 per cent. Company news carried the session, from Ingenia's confirmed takeover talks to NextDC's A$2.3 billion debt upsize.
The S&P 500 rose 0.4 per cent to 7,575 and the Nasdaq 0.3 per cent to 26,282, with the Dow up 0.3 per cent to 52,637 and the VIX down 5.1 per cent to 15.03. Semiconductor and memory names led, helped by SK Hynix's 13 per cent Nasdaq debut. The 10-year Treasury yield rose 3 basis points to 4.57 per cent while the 2-year fell 5 to 4.16 per cent, and the US dollar index held at 100.97.
The Stoxx 600 finished little changed at 641 and is down 1.8 per cent over five sessions, with the FTSE 100 up 0.2 per cent at 10,497 and Germany's DAX off 0.2 per cent at 25,067, a 2.8 per cent fall over the week. Carmakers weighed after Volkswagen, Mercedes-Benz and BMW reported second-quarter global sales down 8.6, 6 and 4.9 per cent respectively on slumping China demand. The euro was flat at US$1.1419 after softer eurozone inflation.
Japan's Nikkei 225 rose 1.2 per cent to 68,558 and Hong Kong's Hang Seng added 0.6 per cent to 24,175, while the Shanghai Composite fell 1.0 per cent to 3,996. China's car market fell for a ninth straight month in June, pressuring the German and local makers exposed to it, and SK Hynix's New York listing underscored the regional pull of AI memory demand. The yen firmed, with USD/JPY down 0.4 per cent to 161.67.
The 10-year Commonwealth government bond yield was 4.89 per cent, up 6 basis points on the day and 63 over the past year, while the RBA cash rate remains 4.35 per cent.
Hunter said the trade-off could not be avoided but that supply shocks did not lessen the importance of low and stable inflation; 30-day interbank futures price no cash-rate cut before 2027.
Per-capita disposable income has grown about 0.15 per cent a year over the past decade, among the worst results in the advanced world, the report tied to poor productivity.
Sydney and Melbourne have led the recent declines, easing the entry cost for buyers even as higher mortgage rates weigh on borrowing capacity.
The steadier bulk and base-metals backdrop supported the resources-heavy local index into the weekend.
The deal opens a new export channel for Australian uranium and drove gains across the local uranium sector on Friday.
The intervention comes as the government weighs tighter gas-market controls to shore up east-coast supply.
The finding adds to scrutiny of governance and conduct across the large accounting and consulting firms.
The widening gap between the two, now about 41 basis points, came as investors sold longer-dated technology debt into a wave of Big Tech borrowing, the Financial Times reported.
Prices spiked then faded after President Trump declared the Iran ceasefire over and threatened renewed strikes on shipping through the Strait of Hormuz.
The report reinforced market pricing that has leaned toward the Fed holding rather than cutting, with the 2-year yield at 4.16 per cent.
Sterling firmed against the dollar despite the oil shock, while USD/JPY fell 0.4 per cent to 161.67.
Freight rates for Russia's Urals shipments to India fell as tanker availability rose, Reuters reported, even as refineries and a terminal were hit in Ukrainian strikes.
The metal has drawn safe-haven demand through the year even as higher US yields raise the cost of holding it.
The subdued reading points to steady equity risk appetite despite the week's geopolitical and rates moves.
Volkswagen's China deliveries dropped 36.6 per cent in the second quarter as domestic brands took share.
Bitcoin is down 44.9 per cent over the past year and Ether 39.4 per cent, having given back much of the prior rally.
Ingenia, a land-lease community operator, said the talks are aimed at extending its land bank beyond its current five-year plan and securing additional capital, while cautioning there is no certainty of any deal.
The upsize lifts the data-centre developer's total senior debt capacity to A$8.7 billion from A$6.4 billion, funding capital expenditure tied to recent customer contract wins, with financial close expected in mid-July.
The result covers the first full year since the FDA-approved treatment launched, and chief executive Silviu Itescu said sales had already exceeded the company's initial projections.
The company's chief executive said Telstra was deeply sorry and acknowledged the risk behind the time-keeping failure that caused the outage had been known, and executives are set to face a Senate hearing next week.
The trust said the proceeds would cut gearing to about 31.6 per cent, within its 30 to 35 per cent target range, and it reaffirmed forecast adjusted funds from operations of 11.7 cents a unit for 2026.
The software provider pointed to stronger project demand and cost discipline; its shares rose about 13 per cent, and audited full-year results are due on 12 August.
The Brazil-focused producer said it would continue legal challenges seeking full refunds of tax paid since the measure began in March, which requires ratification by Brazil's Congress to become permanent.
The copper-focused explorer did not name the party or terms, and said trading would remain paused until it updated the market.
The rare-earths and minerals developer said the filing was a step toward a US offering, without confirming size or timing.
The payout follows a rebound in local dealmaking and capital-markets activity across the trans-Tasman business.
The operator said conditions had deteriorated since its prior outlook and that it would update the market with its results.
The listed investment company, which donates a portion of its funds under management to charity, pointed to gains across its underlying manager portfolio.
The approval lets the company progress direct lithium extraction work at the site as it moves toward larger-scale development.
The complaint says the confidential information spanned product designs, manufacturing processes and supply-chain strategies, and comes as OpenAI prepares to unveil its first hardware device.
It was the largest first-time US listing by a foreign company, with demand running at about seven times the shares on offer, reflecting appetite for exposure to the high-bandwidth memory used in AI systems.
Castlelake had reached an in-principle agreement at the start of July before Apollo raised its offer to win the contested process.
Mercedes-Benz and BMW also reported lower quarterly sales, down about 6 and 4.9 per cent, as China's car market fell for a ninth straight month.
The preliminary findings expose Meta to a fine of up to 6 per cent of global annual revenue; the company said it disagreed and had already taken steps to protect teenagers.
The airline affirmed full-year adjusted earnings guidance of US$6.50 to US$7.50 a share despite a multibillion-dollar fuel headwind, and guided September-quarter earnings to US$2.00 to US$2.50 a share.
PANTHERx, which supplies medicines for rare and orphan diseases, is currently owned by an investor group including General Atlantic.
The move extends the USDC issuer's regulated footprint as stablecoin oversight tightens in the United States.
The clearance removes a domestic hurdle that had held up the group's listing plans.
The listing would give public investors a rare direct stake in commercial fusion research.
The move marks a return to public markets for the owner of Men's Wearhouse and Jos. A. Bank.
The review targets the concentration of the cloud market among a handful of dominant providers.
The private-credit lender said the additional notes extend its funding as institutional demand for direct-lending paper holds up.
The prospect has revived debate over widening retail access to large private-company floats.
“A persistently higher outlook for inflation suggests that interest rates should be raised. But at the same time, weaker economic activity and so more excess supply suggests that interest rates should be cut. This trade-off cannot be avoided.”
“The demand is enormous, exponentially, so I don't really see it shrinking. AI agents and robots need a lot of memory chips.”
“It's a waste of time dealing with them.”
“Protecting the physical and mental health of Europeans must be a priority for social media platforms.”
“Card spend has grown double digits for the past seven quarters, with particular strength among our premium reserve cardholders.”
“For the full year, we are affirming the guidance we set at the start of the year, even with a multibillion-dollar fuel headwind.”
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.