Headline

• ASX 200 futures point to a softer open, slipping 37 points or 0.40%.
• Wall Street maintained its upward momentum, with the S&P 500 closing at an all-time high and the Nasdaq climbing to its strongest level in two months.
• Cooling US producer inflation strengthened expectations that the Federal Reserve could keep rates unchanged in September.
• The US 2-year yield fell to a one-month low, supporting rate-sensitive sectors.

Global Markets Overview

Global equity markets traded with a broadly positive bias, although performance remained uneven across regions. US equities led sentiment, with the S&P 500 reaching a fresh record close as softer producer inflation eased concerns over further monetary tightening. The Nasdaq outperformed, supported by renewed buying across technology and software stocks, while the Dow recorded a modest advance, indicating comparatively subdued participation from traditional blue-chip names.European equities remained under pressure, with the FTSE 100 declining as investors maintained a cautious stance amid evolving macroeconomic expectations. Canadian equities edged higher, reflecting relatively stable investor sentiment. In Oceania, New Zealand equities advanced, with the NZX 50 recording a solid session. Asian markets were also constructive, led by Japan’s Nikkei, which delivered the strongest gain among the major indices reviewed. Indian equities posted a marginal increase, signalling relatively subdued market momentum. Overall, easing US inflation concerns, improving expectations around monetary policy, and strength in technology stocks supported global risk appetite, despite continued regional divergence.Commodities & Crypto

Commodities traded lower, reflecting weaker momentum across precious metals, energy and industrial metals. Gold declined as improved risk appetite reduced demand for traditional safe-haven assets. Silver also came under pressure, recording a steeper decline and reinforcing the softer trend across precious metals. In the energy market, WTI crude was the weakest performer among the listed assets, as oil prices faced notable selling pressure.Industrial commodities were also subdued, with copper edging lower, although its decline was relatively modest compared with other commodities. Uranium weakened during the session, adding to the negative tone across the commodity complex. The simultaneous weakness in crude oil and key metals suggests investors remained cautious regarding near-term commodity demand and macroeconomic conditions.In contrast, Bitcoin remained relatively resilient and posted a marginal gain. The cryptocurrency’s positive performance, despite weakness across traditional commodities, indicated selective risk appetite among investors. Overall, commodities remained under pressure, while Bitcoin showed comparatively stronger momentum.Bond Yields

Global bond markets remained relatively stable, with only modest movements across major sovereign yields. Australia’s 10-year bond yield edged lower, indicating a slight improvement in demand for government bonds. Japan’s 10-year government bond yield stayed at a relatively high level, with investors closely monitoring the Bank of Japan’s next policy moves.In the US, Treasury yields were largely steady, with both the 10-year and 30-year yields recording only marginal increases. The limited movement suggests that bond investors maintained a relatively balanced stance as markets assessed the inflation outlook and expectations for Federal Reserve policy. Overall, sovereign bond markets showed limited volatility, with Australian yields easing slightly and US yields remaining largely stable.Key Drivers

• US producer prices were flat in July, while annual PPI eased to 4.7% versus 4.9% expected, with core PPI at 4.2%, reducing pressure on the Federal Reserve to tighten policy further.
• Softer-than-expected US July PPI reduced expectations for a September Fed rate hike to around 40%, from roughly 50% previously.
• The US 2-year Treasury yield declined by 5 basis points to 4.14%, marking its lowest level since mid-July.
• The S&P 500 closed at a record high after briefly moving above 7,800 during intraday trading.
• Gains were recorded across seven S&P 500 sectors, with Communication Services and Real Estate leading the advance.
• Workday surged 17.8% following reports that Silver Lake has been discussing a potential takeover.
• Cisco declined 8.4% as weaker-than-expected gross-margin guidance overshadowed its earnings beat and improved outlook.
• US initial jobless claims increased to 209,000, coming in above market expectations.
• Oil-market sentiment remained cautious after OPEC lowered its 2026 global oil-demand growth forecast.
• Uncertainty around the Strait of Hormuz remained a key geopolitical risk for global energy markets.
• Norges Bank maintained its policy rate at 4.25%, while easing inflation supported expectations around the future policy path.

ASX Company News

• QBE Insurance Group Limited (ASX: QBE) reported adjusted net profit after tax of US$1.03 billion for 1H26, up from US$997.00 million, while gross written premium increased 6% on a constant-currency basis. The combined operating ratio remained stable at 92.8%, and the Board declared an interim dividend of AU$0.33 per share. However, adjusted ROE declined to 17.7% from 19.2%, while the expense ratio increased to 12.4% and the ex-catastrophe claims ratio rose to 61.8%, partly reflecting claims inflation and large individual events. The PCA multiple also eased to 1.82x from 1.87x, while borrowings increased to US$4.2 billion. These factors could weigh on investor sentiment despite higher earnings and premium growth.
• IPD Group Limited (ASX: IPG) delivered record FY26 results, with revenue increasing 16.8% to AU$414.3 million and underlying EBITDA rising 19.4% to AU$55.4 million, exceeding the upper end of its guidance range. Underlying NPAT increased 17.9% to AU$30.9 million, while data-centre revenue advanced 27% to AU$71.5 million. The Group declared total fully franked dividends of AU$0.147 per share and reduced net debt to AU$16.4 million.
• Baby Bunting Group Limited (ASX: BBN) delivered record FY26 sales of AU$556.0 million, up 6.5%, while pro forma NPAT increased 33.9% to AU$16.1 million. Gross margin expanded by 100 basis points to a record 41.2%. Early FY27 trading remained positive, with comparable-store sales increasing 4.3% during the first six weeks. Management expects FY27 pro forma NPAT of AU$19.0–21.0 million.
• Capricorn Metals Ltd (ASX: CMM) entered into a binding agreement with Latitude 66 Limited to acquire the Piastri Project tenement package, expanding its Golden Range Project footprint in Western Australia. The AU$1.5 million consideration will be settled through Capricorn shares valued using the 20-day VWAP before completion. The approximately 15.2-square-kilometre exploration licence is considered prospective for gold and antimony mineralisation, with Capricorn planning geological mapping, geochemical sampling and targeted drilling.

Stocks trading ex-dividend today

• Argo Investments Limited (ASX: ARG): Dividend of AU$0.20 per share.
• BKI Investment Company Limited (ASX: BKI): Dividend of AU$0.04 per share.
• Spheria Emerging Companies Limited (ASX: SEC): Dividend of AU$0.011 per share.

Key Economic Drivers (What to Watch Today)

• 10:30 pm AEST: US Retail Sales – key indicator of consumer spending momentum and the resilience of the US economy.
• US Treasury yields: Bond-market movements remain important for technology, growth and other rate-sensitive equities.
• Oil prices and the Strait of Hormuz remain key risks as geopolitical tensions continue to affect global energy supply expectations.

Summary 

• ASX 200 futures indicate a softer opening, despite positive overnight sentiment on Wall Street.
• The S&P 500 closed at a record high, while the Nasdaq extended gains on technology-sector strength.
• Softer US producer inflation reinforced expectations that the Federal Reserve could keep rates unchanged in September.
• The US 2-year Treasury yield declined to its lowest level since mid-July, supporting rate-sensitive equities.
• Commodities weakened, with gold, silver, copper and crude oil ending lower.
• Geopolitical uncertainty surrounding the Strait of Hormuz remains a key risk for energy markets and inflation.

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