Headline

• ASX 200 futures point to a weaker open, falling 33 points (-0.36%).
• Wall Street slipped from record highs after softer US retail sales and consumer sentiment data.
• S&P 500 recorded its third straight weekly gain, its longest winning streak since May 2026.
• Oil prices moved higher amid escalating Middle East tensions and tougher US measures against Iran.
• AI-related credit concerns increased after Bank of America highlighted debt risks linked to Broadcom’s off-balance-sheet chip financing structure.

Global Markets Overview

Global equity markets traded with a mixed to slightly cautious bias, as investors balanced concerns around economic momentum, corporate developments, and evolving geopolitical conditions. Wall Street ended lower, with the S&P 500, Nasdaq Composite, and Dow Jones retreating as softer consumer indicators tempered risk appetite and encouraged some profit booking after recent strength. European equities also remained subdued, with the FTSE 100 edging lower amid cautious sentiment across major sectors. Canadian equities were relatively resilient, although the S&P/TSX Composite finished marginally weaker as investors assessed commodity trends and the broader global backdrop. In the Asia-Pacific region, sentiment was comparatively constructive. In Asia, Japan’s Nikkei advanced and outperformed several major global benchmarks, reflecting relatively stronger buying interest. Indian equities ended slightly lower as selective selling constrained broader market momentum. In Oceania, New Zealand’s NZX 50 moved higher, indicating comparatively positive investor sentiment. Overall, global markets displayed a measured and divergent trading pattern, with weakness across major US and European indices contrasting with gains in Japan and New Zealand as investors remained attentive to macroeconomic conditions and geopolitical risks.Commodities & Crypto

Commodity markets traded broadly higher, with precious metals, energy, and industrial metals showing positive momentum. Gold advanced as demand for defensive assets remained firm amid elevated geopolitical uncertainty and cautious global risk sentiment. Silver also strengthened modestly, benefiting from its dual exposure to safe-haven demand and industrial consumption. Crude oil recorded the strongest performance among the major commodities, supported by heightened Middle East tensions and concerns over potential supply disruptions. Copper edged higher, reflecting resilient demand expectations despite lingering uncertainty surrounding the global economic outlook. Uranium was the notable exception, moving slightly lower as selling pressure weighed on the market. Meanwhile, Bitcoin declined modestly, indicating softer sentiment across the cryptocurrency market and some reduction in investor risk appetite. Bond Yields

Global bond markets showed a mixed trend as investors assessed inflation, economic conditions, and the outlook for interest rates. Australian government bond yields moved slightly higher, reflecting continued caution around inflation and the future direction of monetary policy. Japanese bond yields also edged higher as markets continued to adjust to the Bank of Japan’s gradual shift toward policy normalisation. In the United States, Treasury yields moved in different directions. The US 10-year Treasury yield edged lower, as softer economic data supported expectations of a less restrictive interest-rate outlook.However, the longer-dated Treasury yield moved higher, suggesting that investors remain concerned about inflation, government borrowing, and the longer-term economic outlook. Overall, global bond markets were mixed. Australian and Japanese yields edged higher, while US Treasury yields diverged across maturities. The moves reflected a balance between softer economic signals, inflation concerns, fiscal pressures, and changing interest-rate expectations.Key Drivers

• US markets ended mixed, trading in a narrow range and closing near session lows.
• S&P 500 and Nasdaq slipped as weakness in technology stocks weighed on sentiment.
• Equal-weight S&P 500 outperformed, extending its run of record highs.
• S&P 500 posted a third consecutive weekly gain, while the Dow declined for the week.
• Berkshire Hathaway increased stakes in Alphabet and Delta, alongside buybacks and acquisition activity under CEO Greg Abel.
• US Treasury supply is in focus, with the upcoming 20-year bond auction set to test investor demand.
• Singapore equities remained strong, supported by resilient economic conditions.
• Applied Materials beat quarterly expectations, but shares declined as margin guidance disappointed investors.
• Reddit is set to join the S&P 500, driving a strong rise in its shares.
• Sandisk rallied after a JPMorgan upgrade, supported by expectations of stronger margins and reduced cyclicality.
• Iran-related geopolitical risks intensified, with the US preparing additional economic pressure and further vessel attacks reported near the Strait of Hormuz.
• Trade tensions remained elevated, with Canada facing potential US tariffs and Washington announcing drone tariffs targeting China.
• US consumer data weakened, as retail sales declined sharply and consumer sentiment deteriorated, influencing expectations around the Federal Reserve’s policy path.

ASX Company News

• The a2 Milk Company Limited (ASX: A2M) reported FY26 revenue of NZ$1.97 billion, up 12.4%, while NPAT reached NZ$207.5 million and EBITDA was NZ$284.4 million. Growth was supported by strong performance across liquid milk and other nutritionals, while the company declared a NZ$300 million special dividend and increased full-year ordinary dividends to NZ$0.21 per share. However, supply-chain disruption affected China-label infant formula availability and second-half earnings. For FY27, management expects mid-single-digit revenue growth and an EBITDA margin of around 15%.
• Australian Clinical Labs Limited (ASX: ACL) reported FY26 revenue of AU$735.8 million, down 0.7%, while underlying NPAT increased 4.6% to AU$35.2 million. Statutory NPAT declined 26.9% to AU$23.7 million, while underlying EPS increased 8.5%. The Board declared a fully franked final dividend of AU$0.0925 per share. While underlying profitability improved, weaker statutory earnings and marginally lower revenue could temper investor sentiment.
• BlueScope Steel Limited (ASX: BSL) reported FY26 NPAT of AU$802 million, while underlying EBIT reached AU$1.27 billion, supported by stronger US steel spreads and record Southeast Asian performance. The Board declared an ordinary final dividend of AU$0.65 per share and a special dividend of AU$0.70 per share. However, Australian underlying EBIT declined 28% amid weak Asian steel spreads, while Chinese overcapacity remains a key headwind.
• JB Hi-Fi Limited (ASX: JBH) reported record FY26 sales of AU$11.06 billion, up 4.8%, while EBIT increased 5.8% to AU$734.4 million and NPAT rose 6.0% to AU$489.9 million. The Board declared a final dividend of AU$1.27 per share, taking the full-year ordinary dividend to AU$3.37 per share. However, weaker July trading across several businesses and ongoing supplier price increases could weigh on near-term sentiment.
• Macmahon Holdings Limited (ASX: MAH) entered a strategic partnership with Allcap Securities involving the partial sale of its Homeground workforce accommodation village. Macmahon will initially sell a 20% interest, with Allcap holding an option to acquire a further 30%, based on Homeground’s AU$52 million book value. The partnership also provides potential exposure to civil contracting and accommodation opportunities linked to the proposed AU$20 billion Project Velocity development.
• IMDEX Limited (ASX: IMD) delivered record FY26 revenue of AU$520 million, up 21%, while reported EBITDA increased 38% to AU$179 million and NPAT rose 44% to AU$79 million. Normalised EBITDA reached AU$163 million, with margin expanding to 31%. Strong organic growth, acquisitions and increased adoption of digital and AI-enabled solutions supported performance. However, higher depreciation, amortisation and finance costs are expected in FY27.
• Meeka Metals Limited (ASX: MEK) completed the acquisition of the Blue Vein, Bushpig and Razorback gold deposits near Mt Holland in Western Australia. The acquired area covers around 71 square kilometres and approximately 24 kilometres of prospective gold-hosting formations. Meeka expects updated JORC-compliant mineral resources in October 2026, followed by drilling and broader exploration during 2027. The acquisition strengthens its gold growth pipeline, although value creation remains dependent on exploration success and resource conversion.

Stocks trading ex-dividend today

• Contact Energy Limited (ASX: CEN): Dividend of AU$0.194 per share.
• US Masters Residential Property Fund (ASX: URF): Dividend of AU$0.04 per share.

Key Economic Drivers (What to Watch Today)

• 9:50 am AEST – Japan GDP Growth: Key indicator of economic momentum and the Bank of Japan’s policy outlook.
• 12:00 pm AEST – China Economic Data: Industrial production, retail sales, fixed asset investment and unemployment will provide signals on domestic demand and economic activity.
• Geopolitical Developments: Middle East tensions and potential US measures against Iran could influence oil prices, inflation expectations and broader market risk sentiment.

Summary 

• ASX 200 futures point lower as Wall Street weakness weighs on sentiment.
• Wall Street closed lower, with the S&P 500, Nasdaq and Dow retreating amid softer US consumer data.
• S&P 500 secured a third consecutive weekly gain, marking its longest winning streak since May.
• Technology weakness pressured US equities, while the equal-weight S&P 500 continued to outperform.
• Oil prices advanced strongly as Middle East tensions and potential supply risks remained in focus.
• Gold, silver and copper moved higher, while uranium and Bitcoin traded lower.
• Global bond yields were mixed, with Australian and Japanese yields rising while US Treasury yields diverged across maturities.
• US consumer conditions weakened, with softer retail sales and consumer sentiment influencing expectations for Federal Reserve policy.
• Iran-related geopolitical risks intensified, as the US prepared further economic pressure amid continued tensions around the Strait of Hormuz.
• Trade tensions remained elevated, with potential US tariffs on Canada and new drone tariffs targeting China in focus.
• Investors should remain cautious as the ongoing Middle East conflict continues to pose geopolitical risks to global markets.

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