ASX 200 Futures Flat Amid Key Earnings Updates; Computershare Upgrades Guidance

Highlights 

• ASX 200 Futures remained steady, up 2 points (+0.02%) as of 8:30 am AEDT, signaling a cautious market open. 
• Commonwealth Bank of Australia (ASX:CBA) reported first-half FY25 net profit after tax (NPAT) growth of 2%, slightly ahead of expectations. 
• Computershare Limited (ASX:CPU) exceeded first-half FY25 expectations and upgraded its full-year guidance. 

Overnight, US markets delivered mixed results. Weakness in the Technology and Consumer Discretionary sectors was counterbalanced by strength in Energy and Staples. Traders exhibited caution ahead of the US Consumer Price Index (CPI) release, which is expected to shape inflationary expectations and influence Federal Reserve policies. 

Fed Chair Jerome Powell reiterated the central bank's focus on controlling inflation, noting no immediate urgency to adjust interest rates. Economists, however, anticipate rate cuts by mid-2025 as inflationary pressures ease. Meanwhile, European markets remain vigilant as geopolitical tensions and trade dynamics, including Trump-era tariffs, continue to evolve. 

ASX 200 Outlook 

ASX 200 futures indicate a flat open, reflecting subdued momentum amid global economic uncertainties. Key corporate earnings reports and upgrades are expected to drive sector-specific moves. 

Key Corporate Earnings 

Commonwealth Bank of Australia (ASX:CBA) 

• Reported a 2% rise in first-half FY25 NPAT to $5.13 billion, narrowly surpassing market consensus of $5.08 billion. 

• Declared an interim dividend of $2.25 per share, representing a 5% increase. 

• Margins improved slightly, though capital adequacy ratios fell short of some analysts' expectations. 

Computershare Limited (ASX:CPU) 

• Delivered a 15.9% increase in NPAT to $383.6 million, exceeding consensus by 7.1%. 

• Revised its full-year FY25 guidance upward, indicating continued robust performance across business segments. 

• Interim dividend declared at 43 cents per share, marginally beating market expectations. 

Imdex Limited (ASX:IMD) 

• Reported a 19.2% decline in NPAT to $26.5 million, aligning with consensus estimates. 

• Declared an unchanged interim dividend of 1.5 cents per share. 

Suncorp Group (ASX:SUN) 

• Recorded first-half FY25 cash earnings of $860 million, a significant improvement from $660 million in the previous corresponding period. 

• Declared an interim dividend of 41 cents per share and a special dividend of 22 cents per share. 

Telix Pharmaceuticals Limited (ASX:TLX) 

• Received approval for its Illuccix product from the Danish Medicines Agency, expanding its presence in Europe. 

Sector-Specific Trends 

Copper and Commodity Markets 

Copper prices experienced a sharp 2% decline overnight, impacting copper mining stocks and related exchange-traded funds (ETFs), such as the Global X Copper Miners ETF (COPX), which fell 3%. This reflects concerns over weakening demand amid broader global economic headwinds. 

Technology and Innovation 

Key developments included: 

• Apple Inc. exploring partnerships with Alibaba to enhance artificial intelligence features for iPhones in the Chinese market. 

• NielsenIQ collaborating with JPMorgan to raise $1.25 billion for a potential IPO. 

• OpenAI rejecting a buyout proposal from a consortium led by Elon Musk. 

Energy and Retail 

Energy markets remained resilient, supported by higher demand for oil and gas. BP reported a four-year low in quarterly profits but outlined plans to reset its strategy. In the retail space, Coca-Cola delivered a strong quarterly performance, with net sales rising 6% year-on-year. 

Key Economic Updates 

Australia 

• Consumer confidence improved in January but remains vulnerable to ongoing cost-of-living pressures. 

• Business confidence showed signs of recovery, though softer profits and sales weighed on overall business conditions. 

Trump Tariffs and Trade 

The US imposed additional tariffs on steel and aluminum imports, with reciprocal measures announced against countries such as India and Thailand. Australia's exemption from these tariffs provides some relief to domestic exporters. 

Broker Moves 

Notable Upgrades 

• Computershare Limited (ASX:CPU): Upgraded to "Outperform" from "Hold" by CLSA, with a revised target price of $38.70 (previously $30.70). 

• Dicker Data Limited (ASX:DDR): Upgraded to "Overweight" from "Equal-weight" by Morgan Stanley, with a target price increase to $10.10. 

• Breville Group Limited (ASX:BRG): Upgraded to "Hold" from "Underperform" by CLSA, target revised to $38.45. 

Downgrades 

• Ansell Limited (ASX:ANN): Downgraded to "Hold" from "Buy" by Jefferies, though the price target was raised to $42. 

What to Watch Today 

• Computershare Limited (ASX:CPU): Strong guidance revisions and first-half outperformance are expected to drive positive sentiment in trading. 

• Commonwealth Bank of Australia (ASX:CBA): Analysts remain focused on the implications of slightly weaker capital adequacy ratios despite solid earnings growth. 

• Copper Miners: Price fluctuations could weigh on stocks in the materials sector. 

Investors are set to navigate a mix of corporate earnings, economic data, and geopolitical developments, with a focus on long-term trends shaping market sentiment.