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ASX 200 futures are trading 33 points higher, up 0.42% as of 8:30 am AEST. The S&P 500 and Nasdaq continued to fall overnight as investors pivoted away from megacap tech stocks. Ford experiences its worst one-day selloff since the GFC, US Q2 GDP prints well above market expectations, and we await the performance of Macquarie, Ampol, and Karoon Energy following their recent updates. Also, apologies for yesterday's ASX futures line; the numbers were correct, but it should have said down, not up.
OVERNIGHT MARKETS
- Major US benchmarks finished mixed but well-off session highs – Both the S&P 500 and Nasdaq were up around 1.1% by midday but faded into the close.
- Small caps continued to outperform, with the Russell 2000 on track for a weekly gain.
- All Magnificent 7 stocks finished lower except for Tesla.
- Several dynamics are in play, including lackluster Big Tech earnings vs. elevated expectations, growing consumer concerns, stretched positioning, and a tight race between Trump and Harris.
- A massive volume of earnings today, with over 30% of the S&P 500 having now reported – Key themes include AI momentum, airline capacity issues, big-ticket spending softness, and a push for operational efficiency and cost savings.
- Commodity markets were mixed – Copper snapped an eight-day losing streak, gold continued to sell off, Chinese iron ore futures bounced to US$102 a tonne.
ASX TODAY
- AMA Group hires Pitcher Partners to sell ACM Parts division for debt reduction (ASX:AFR).
- ASX:BHP, Coronado, and Whitehaven believed to be passing up on Anglo American’s Queensland coal mines (The Aus).
- COG Financial major shareholder First Sentier sells down 9.4m shares at $1.00 (ASX:AFR).
- Nine Entertainment's publishing division rejects the latest EBA offer and votes to go on a five-day strike (AFR).
- Sigma Healthcare holder HMC Capital decreases holding to 12.2% from 15.0% (ASX:SIG).
WHAT TO WATCH TODAY ASX 200 set to tick higher following a solid overnight session for value and small caps.
- Overnight ETFs: Mixed performance for our overnight ETF watchlist, with strength across Biotech, Energy, and Homebuilders and weakness for Silver, Gold, Semiconductors, and Uranium.
- Day Twos: Monitor the performance of yesterday's trading updates and quarterlies, including:
- Ampol: Reported a 1H24 EBITDA, refinery production, and refining margin miss. The stock opened 4% lower on Thursday, finishing 1.8% lower. Mixed analyst views are emerging this morning.
- Karoon Energy: Announced a new capital returns plan, including a dividend payout of 20-40% NPAT and a $25m share buyback. The stock gapped up 4.7% on Thursday but finished 3% lower. Can it bounce back today?
- Macquarie: Shares dipped 3.4% yesterday after reporting 1Q25 numbers well below consensus expectations. Citi notes that the market will need to trust Macquarie's 2H25 performance.
