AUS
NZ
UK
CA
USA
IND
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Highlights
- ASX 200 expected to open lower; RBA rate decision in focus
- Tariff tension weighs on global sentiment
- Notable stock moves: (ASX:NST) drops, (ASX:ORG) surges
The Australian share market appears set for a soft start, with futures indicating a 47-point or 0.55% fall at 8:30 am AEST. This follows a modest 13-point decline in the S&P/ASX 200, closing Monday at 8,589. The retreat was largely influenced by underperformance in the Materials (-0.86%), Consumer Discretionary (-0.75%), and Real Estate (-0.46%) sectors. A strong showing from Utilities (+3.52%) and Health Care (+0.92%) provided partial support.
Investor sentiment remains cautious ahead of the Reserve Bank of Australia’s (RBA) policy announcement. The market is almost fully pricing in a 25 basis point cut, which would lower the cash rate to 3.60%. This expectation is supported by recent soft inflation numbers and sluggish GDP growth. Additionally, global markets remain on edge due to an upcoming July 9 deadline tied to new US tariff announcements.
Among individual stocks, (ASX:NST) fell sharply by 8.65% to A$16.80. The decline followed a disappointing fourth-quarter update and weaker-than-anticipated FY26 guidance. In contrast, (ASX:ORG) climbed 6.75% to A$11.55, driven by the news of Octopus Energy’s plan to demerge its A$13.7 billion Kraken technology platform, in which Origin holds a 23% interest.
The ASX 200 outlook is further shaped by external developments in global markets. Overnight, US equities slipped as the United States introduced new tariffs on 14 countries, including Japan and South Korea, with levies reaching 25%. Despite the moderate pullback, much of the move was already anticipated. Regional sentiment was impacted as Nikkei futures dropped 0.60%.
While nations like Canada, Mexico, and those in Europe were excluded from the latest round, further announcements are expected. Focus now shifts to upcoming US jobless claims and the Federal Open Market Committee (FOMC) meeting minutes, with 17 basis points in rate cuts priced in for September.
In Europe, most major indices edged higher, boosted by gains in technology and banking stocks. The FTSEurofirst 300 rose 0.5%, lifted by names like SAP and ASML. Société Générale led gains among French banks. Meanwhile, the UK’s FTSE 100 lost 0.2%, impacted by a 2.9% decline in (LON:SHEL) after a profit warning in its gas and chemicals division.
In the currency space, movements were mixed. The Euro dipped to US$1.1710, while the Australian dollar traded around US64.90 cents. Oil prices saw over 1% gains, with Brent crude at US$69.58 per barrel and WTI at US$67.93. However, base metals fell on tariff concerns, with copper and aluminium down more than 2%. Gold prices were steady, while iron ore eased 1.1% to US$95.22 per tonne due to curbs in China's Tangshan steel hub.
