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The ASX 200 is poised for an upward movement, following the positive momentum seen in the S&P 500 after the release of softer-than-expected Producer Price Index (PPI) data. This data has eased concerns over inflationary pressures, fueling optimism in global markets.
In corporate news, Commonwealth Bank of Australia (ASX:CBA) has released its latest financial results, drawing significant attention from investors. Pro Medicus (ASX:PME) also reported its earnings, with market participants closely analyzing the figures for indications of future growth.
As of 8:30 am AEST, ASX 200 futures are trading 57 points higher, up 0.73%, reflecting positive sentiment from Wall Street. Major US benchmarks rallied overnight as better-than-expected producer inflation data reinforced expectations for potential rate cuts by the Federal Reserve.
Bank of America's latest fund manager survey reveals a slight pullback in investor optimism, though expectations for a soft landing remain intact. The ongoing reporting season continues to heat up, with notable results from Commonwealth Bank of Australia (ASX:CBA), AGL Energy (ASX:AGL), and Pro Medicus (ASX:PME).
Overnight Markets Recap
US benchmarks closed near their session highs, driven by cooler-than-expected producer inflation data. The S&P 500 climbed above 4,500 for the first time since August 1 and has now gained 5% since last Monday’s selloff.
Key Story: The softer July PPI data provided a tailwind for several themes, including disinflation momentum and the growing likelihood of upcoming Fed rate cuts.
The latest Bank of America Global Fund Manager Survey showed a slight increase in cash levels, rising by 0.2 basis points month-on-month to 4.3%. Meanwhile, the percentage of investors overweight stocks decreased by 20 basis points to 31%. Global growth expectations fell by 20 basis points to a net 47%, but soft landing expectations improved, rising from 68% to 76%. Notably, 93% of respondents expect lower short-term rates within the next 12 months.
ASX Today
- Amotiv (ASX:AOV): Formerly GUD Holdings, is set to announce its FY24 results.
- BHP (ASX:BHP): Escondida Mine employees have begun a strike following the end of labor talks, as reported by Bloomberg.
- BWP Trust (ASX:BWP): Scheduled to release its full-year results for the year ending June 30, 2024.
- Commonwealth Bank (ASX:CBA): Reporting its FY24 full-year results, with figures slightly ahead of analyst estimates.
- Evolution Mining (ASX:EVN): Announced a record FY24 profit, with high-margin cash flow expected to continue into FY25.
- Healius (ASX:HLS): Diagnostic imaging bidders are nearing the end of the sale process, according to The Australian.
- Lifestyle Communities (ASX:LIC): Reporting FY24 results.
- Orora (ASX:ORA): Confirmed a $3.3 billion bid from US buyout fund Lone Star, as reported by the AFR.
- Seven Group (ASX:SVW): Set to announce its full-year results.
What to Watch Today
The ASX 200 is expected to rally this morning, buoyed by a strong lead from Wall Street and the cooler-than-expected US PPI data. CBA's full-year results have come in slightly ahead of analyst estimates, potentially driving further positive momentum in the index.
Today’s Reporting Highlights vs. Analyst Expectations:
- AGL Energy (ASX:AGL): Consensus expects FY24 revenue of $12.7 billion and NPAT of $795.5 million, with AGL previously guiding to $760-810 million.
- Commonwealth Bank (ASX:CBA): Analysts expect FY cash NPAT of $9.82 billion, a net interest margin of 1.98%, and a full-year dividend of $4.57.
- Evolution Mining (ASX:EVN): Reported FY24 NPAT of $482 million, slightly missing the consensus of $417.5 million. The full-year dividend of 7 cents per share falls short of the 8-10 cps expected by analysts.
- Seven Group (ASX:SVW): The street expects full-year revenue of $10.75 billion and NPAT of $812 million. Seven Group has guided for FY25 EBIT growth in the high single digits.
