Global Market Overview

US stocks closed mostly lower after losing early gains. The S&P 500, Dow Jones, and Nasdaq all recorded declines, with the S&P 500 posting its fourth weekly gain in five. The broader market reaction was influenced by disappointing jobs data, which raised concerns about economic momentum. Meanwhile, US bond yields dropped to their lowest level since April, reflecting increased expectations for rate cuts in the near term.

Commodities
Gold prices reached a new record high, trading at $3,592 per ounce. Lithium stocks surged, particularly in China, with some miners hitting upper trading limits. Copper and steel prices also showed moderate gains.

Key Economic Drivers
The US August nonfarm payrolls report came in at only 22,000 new jobs, far below the forecast of 77,000. Additionally, the June job growth was revised downward to a 13,000 decline, marking the weakest performance since December 2020. These disappointing numbers intensified expectations for future rate cuts, with September's policy meeting showing a 14% chance of a 50 basis point reduction and about 70 basis points expected for 2025.

Oil prices softened following OPEC+'s agreement to increase output by approximately 137,000 barrels per day starting in October.

Sector Performance
Among the best-performing sectors were Real Estate, Communication Services, Materials, and Health Care. Financials and Energy led the declines.

Noteworthy Stock Developments

• Broadcom gained 9% after surpassing earnings expectations, aided by its AI chip initiatives.
• Lululemon fell 18% after reporting weaker earnings and lowering its forecast due to sluggish demand and tariffs.
• Apple’s annual sales in India reached $9 billion, driven by strong iPhone demand.
• Anthropic announced it will stop providing AI services to groups majority-owned by Chinese companies.
• Starbucks’ China operations are now valued at over $1 billion, supported by steady earnings growth.

Trade and Tariff Updates
The US signed a new trade agreement with Japan, establishing a base 15% tariff along with sector-specific tariffs on autos and aerospace. Japan committed to $7 billion in annual energy purchases from the US. Meanwhile, European exporters are reviewing their strategies as expanded US tariffs on steel and aluminum may disrupt trade agreements.

Central Bank Signals and Economic Trends
Fed officials remain cautious about rate cuts due to inflation concerns. Nonetheless, policymakers indicated that cuts might be more appropriate in the future. Japan saw its highest wage growth in seven months, although consumer spending remains weak. China’s export growth is expected to slow due to weaker demand from the US and cycling high comparables.

ASX Market Highlights
ASX 200 futures opened lower by 15 points. The index’s upcoming rebalance added several stocks, including DroneShield and Greatland Resources, while removing others like Credit Corp and Macquarie Technology. Gold mining ETFs are set for a positive session, and lithium stocks continue to show strength.

Corporate Actions to Watch
Several companies are set to trade ex-dividend this week, including AUB Group, CSL, and Regis Healthcare. There are no major earnings reports, IPOs, or AGMs scheduled today.

Summary
US markets weakened after disappointing jobs data, pushing bond yields lower and increasing expectations for rate cuts. Gold hit record levels, while lithium and other commodities gained. Broadcom and Apple led individual stock moves, with tariffs and trade deals affecting global relations. Central banks remain cautious but signal future rate adjustments. On the ASX, index changes and strong commodity performance set the tone for active trading. This environment calls for a careful approach, focusing on yield-sensitive sectors and monitoring geopolitical developments.

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