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Highlights:
US markets hit fresh records ahead of key economic data
Crypto and crude take a breather as volatility subsides
RBA and Fed meetings to drive the week ahead
As trading week begins, all eyes are on the S&P/ASX 200 following a surge in global equities led by Wall Street. US markets closed the previous week on a strong note, delivering optimism across international indices, though ASX futures suggest a cautious local start.
Global Markets Close on a High
US markets ended last week on a positive streak, with all major indices touching fresh record levels. The S&P 500 marked its fifth consecutive record finish, supported by robust gains in technology heavyweights. Meanwhile, the Nasdaq Composite and Dow Jones Industrial Average also climbed, further fuelling investor confidence across global markets.
European indices displayed mixed movement, with slight dips in Germany’s DAX and the UK’s FTSE, while France’s CAC posted modest gains. The upbeat tone from Wall Street helped offset regional uncertainties, particularly surrounding economic data and central bank policy direction.
Big Tech and Earnings Take Centre Stage
The rally was supported by a strong showing from major corporations. Intel (NASDAQ:INTC) exceeded earnings expectations, although its future manufacturing roadmap raises questions as the company narrows focus to internal projects. In contrast, market attention briefly shifted to Healthcare Triangle Inc. (NASDAQ:HCTI), a microcap that unexpectedly surged in trade volumes, reminiscent of previous meme stock frenzies.
Looking ahead, earnings from major US tech giants including Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) are expected mid-week. Their results could influence global tech sentiment and impact broader equity markets.
Crypto and Commodities Ease Off
Bitcoin showed signs of consolidation after a recent strong run, holding above significant psychological levels. Ethereum mirrored the same movement as the crypto market paused for breath. Meanwhile, geopolitical commentary surrounding crypto regulation continues to add layers of complexity to this volatile space.
Crude oil prices slid marginally after fresh developments in Venezuela. The US greenlit Chevron (NYSE:CVX) to resume activity in the region, a move viewed as politically strategic and timed with election season. This additional supply weighed on Brent futures, pulling prices down from recent highs.
Domestic Focus Shifts to Inflation and Economic Rankings
In Australia, market focus turns to upcoming economic data. The release of the CommSec State of the States report today will provide insights into relative economic performance across Australian regions. However, greater emphasis is placed on Wednesday’s inflation report, specifically the Q2 trimmed mean CPI – a key measure monitored by the Reserve Bank of Australia.
A soft inflation reading could heighten expectations for a potential interest rate adjustment at the RBA’s August meeting. Global sentiment is similarly cautious ahead of the US Federal Open Market Committee (FOMC) meeting, with expectations leaning toward steady rates while monitoring the effect of trade developments on inflation.
With both the RBA and US Fed meetings on the calendar, and a host of heavyweight earnings on deck, market participants will be watching for cues that could shape global market direction in the coming weeks. The S&P/ASX 200 may see subdued movements early in the week before more defined trends emerge midweek, aligned with key data and corporate results.
