Good morning. Wall Street pushed higher overnight as investors looked past the widening Iran conflict to a strong start to earnings season. The S&P 500 rose 0.9 per cent to 7,509 and the Nasdaq 1.3 per cent to 25,837, both snapping three-day losing streaks, while the Dow added 0.7 per cent to 52,225 and the VIX fell 8.6 per cent to 17.05. Of the roughly 66 S&P 500 companies to have reported, close to 88 per cent have beaten profit forecasts, on FactSet's count: 3M jumped more than 7 per cent and General Motors close to 5 per cent, both after lifting full-year guidance. The US 10-year Treasury yield rose 3 basis points to 4.63 per cent.
The war showed up in commodities and currencies more than in equities. Brent crude rose 2.5 per cent to US$91.44 a barrel, up 7.9 per cent over five sessions, after Houthi forces threatened a Red Sea blockade and Saudi tankers turned back, and the International Energy Agency warned of risks to energy supply. Gold gained 1.8 per cent to US$4,082 an ounce and copper 3.7 per cent to US$14,396 a tonne. The US dollar drew a safe-haven bid, lifting the dollar index 0.2 per cent to a one-week high of 101.20 and pushing the yen to a 40-year low of 163.11 per US dollar. Money markets still point to the Federal Reserve holding rates at its 28-29 July meeting despite the fresh inflation risk from oil.
Locally, the ASX 200 finished the prior session flat at 8,793, snapping a four-day losing streak as gold and copper miners rebounded and the major banks and healthcare names eased. NextDC rose 7.2 per cent after a contract update and South32 5.8 per cent after a production report that beat its full-year guidance. The Australian dollar held US70.03c. In the background, the Australian Financial Review reported that gross domestic product per person has grown an average of 0.7 per cent a year since 2020, the weakest of any decade on record.
The ASX 200 closed the prior session little changed at 8,793, snapping a four-day losing streak. Gold and copper miners led the rebound, with Regis Resources up 4.2 per cent and NextDC up 7.2 per cent to $13.99 on a contract update, while the major banks and the healthcare names Pro Medicus and CSL weighed. The Australian dollar held US70.03c, the 10-year government bond yield eased 1 basis point to 4.91 per cent and iron ore held at US$98.70 a tonne.
The S&P 500 rose 0.9 per cent to 7,509, the Nasdaq 1.3 per cent to 25,837 and the Dow 0.7 per cent to 52,225, all snapping three-day losing streaks as chipmakers led and earnings beat forecasts. The VIX fell 8.6 per cent to 17.05. The 10-year Treasury yield rose 3 basis points to 4.63 per cent and the 2-year 3 basis points to 4.21 per cent, while the dollar index climbed to 101.20, gold reached US$4,082 an ounce and Brent settled at US$91.44 a barrel.
The Stoxx 600 rose 0.6 per cent to 643, the FTSE 100 0.6 per cent to 10,586 and the DAX 0.7 per cent to 25,011. UK defence stocks gained on expectations that new finance minister John Healey will lift military spending, and Britain borrowed less than expected in June, though its public finances remain stretched. The euro eased 0.1 per cent to US$1.1403.
The Nikkei 225 jumped 3.3 per cent to 66,232 as the yen's slide to a 40-year low of 163.11 per US dollar flattered exporters. The Shanghai Composite rose 1.8 per cent to 3,864 after state-backed buying steadied the market following last week's selloff in artificial-intelligence names, while the Hang Seng was little changed at 25,132.
Gross domestic product per person has grown an average of 0.7 per cent a year since 2020, about a third of the pace of the 1990s, and has gone backwards for two straight years.
The US dollar index rose 0.2 per cent to a one-week high of 101.20, the euro eased 0.1 per cent to US$1.1403 and the yen fell to a 40-year low of 163.11 per US dollar.
The cash rate is 4.35 per cent and 30-day interbank futures continue to price no cut before 2027.
Gold and copper miners rebounded while the major banks and the healthcare names Pro Medicus and CSL fell.
The price has risen 1.5 per cent over the past year.
That compares with a 19.1 per cent gain for the S&P 500 and 17.7 per cent for the Stoxx 600 over the same period.
The scrutiny of the firm's governance comes as it prepares for job cuts.
Houthi forces threatened a Red Sea blockade and Saudi tankers turned back, and the International Energy Agency warned of risks to energy supply; Brent is up 32.1 per cent over the past year.
The US 10-year Treasury yield rose 3 basis points to 4.63 per cent and the 2-year 3 basis points to 4.21 per cent.
The yen fell to a 40-year low of 163.11 per US dollar, and gold rose 1.8 per cent to US$4,082 an ounce.
The metal is up 16.4 per cent over the past year.
The Canadian dollar weakened after the move.
The administration framed the action as a response to forced-labour concerns.
UK defence shares rose on hopes of higher military spending, though the public finances remain stretched.
The Shanghai Composite rose 1.8 per cent to 3,864.
He also said China's purchases of Iranian oil had decreased.
Its forward order book rose to 565 megawatts, and the company left its FY2026 net revenue, underlying EBITDA and capital-expenditure guidance unchanged.
The diversified miner lifted sales volumes 15 per cent and was among the strongest names in the ASX 200 materials sector in the session.
The miner generated a record quarterly operating cash flow from its Cobar operations of $53.1 million, its highest since 2018, with copper, lead, zinc and silver all within guidance.
The company said the proceeds fund a pivot toward gold and copper exploration.
The extension followed further drilling at the project.
The pharmaceutical manufacturer has been narrowing losses through a strategic realignment.
The capital raising was flagged as price-sensitive by the oil-and-gas services group.
The Perth Basin oil producer told the ASX the appointment took effect immediately.
The uranium developer confirmed it was not aware of undisclosed information behind the trading in its shares.
The point-of-care diagnostics group flagged the update as price-sensitive.
The scrutiny comes as the firm prepares for job cuts.
The company raised its full-year sales, earnings and free-cash-flow guidance, and said Microsoft had become the first hyperscaler to deploy its Expanded Beam Optical technology in Azure data centres.
GM lifted full-year adjusted EBIT guidance to US$14 billion to US$16 billion and adjusted earnings to US$12 to US$14 a share, with North American margins back in its 8 to 10 per cent target range.
The broker added 1.4 million new brokerage accounts and US$120 billion of core net new assets, up almost 50 per cent on a year earlier, while bank lending balances rose 33 per cent to US$67 billion.
It guided fourth-quarter gross margin to 15 to 17 per cent, up from the 8.2 to 8.4 per cent flagged in May, and chief executive Charles Liang cited new work with SpaceX.
The bank combined its alternatives business with two new teams focused on direct investments and on helping clients buy and sell stakes, pointing to past access to Facebook, SpaceX, Stripe and Canva.
The firm brought forward the rebranding of Guy Carpenter and Mercer to Marsh to September, and bought back US$1.5 billion of stock in the first half.
The pledge adds to the wave of capital funding the AI build-out.
The financing would support projects tied to the trade framework between Washington and Tokyo.
The largest US gas producer pointed to softer realised prices in the period.
The biotech said the mid-stage program did not meet its goals.
The staffing group cited sluggish demand across European markets.
The spirits group had contested the assessment before dropping the case.
The complaint comes as South Africa's regulator reviews 12 generic semaglutide applications.
The ruling rejected the platform's argument that federal oversight pre-empts state rules.
“We entered a strategic partnership with Microsoft, who become the first hyperscaler to deploy our patented Expanded Beam Optical technology in Azure data centers.”
“Stock ownership is at the highest levels we've seen in nearly 20 years. People are investing earlier in their life, and we're seeing engagement across a broader income and education spectrum.”
“There has been a lot of focus on the big growth tech names and getting clients access to those before they debut in the public markets.”
“We had a solid second quarter as demand for our advice and capabilities remains strong.”
“China's purchases of Iranian oil have decreased.”
“They could be turned into baked bean cans. Heinz would be interested.”
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.