Headline

• ASX 200 futures point to a firmer open, up 99 points (+1.11%), tracking Wall Street's strength and a pickup in commodity prices overnight.
• Nasdaq broke a six-day skid with a 2.7% jump, as buyers piled back into AI-linked names; S&P 500 (+1.66%) and Dow (+1.19%) also finished near session highs.
• Microsoft was the standout, rocketing over 15% and adding close to US$450bn in market cap — its biggest single-day dollar gains ever.
• Tech led sector gains by a wide margin, up 5.24%, with chipmakers also firm as the Philadelphia Semiconductor Index jumped 8%; defensives lagged, with Communication Services (-2.52%) and Consumer Staples (-2.24%) the weakest

Global Markets Overview

Global equity markets delivered a broadly positive performance, led by a strong rebound in US technology stocks. The Nasdaq Composite surged 2.78% to 25,122.00, while the S&P 500 gained 1.66% to 7,438.00 and the Dow Jones Industrial Average advanced 1.19% to 52,208.00, reflecting renewed investor confidence in large-cap technology and AI-related stocks. Canada's S&P/TSX Composite also ended higher, rising 0.49% to 35,506.00, while India's benchmark index added 0.35% to close at 77,928.00. Japan's Nikkei climbed 0.71% to 61,867.00, supported by positive regional sentiment. In contrast, the UK's FTSE 100 edged down 0.10% to 10,897.00 amid cautious trading, while New Zealand's NZX 50 underperformed, falling 1.53% to 13,763.00. Overall, investor sentiment remained constructive, with gains in major US and Asian markets outweighing weakness in selected European and New Zealand equities.

Commodities & Crypto

Commodity markets delivered mixed performance, with precious metals and uranium posting solid gains while energy and base metals weakened. Gold rose 0.34% to US$4,079.90 per ounce, supported by continued safe-haven demand, while silver advanced 2.14% to US$59.33 per ounce. Uranium surged 5.06% to US$5,293.32, reflecting sustained strength in the nuclear fuel market. In contrast, WTI crude oil slipped 0.59% to US$83.96 per barrel amid profit-taking and demand concerns. In the digital asset space, Bitcoin gained 1.39% to US$64,741.00, indicating an improving risk appetite across cryptocurrency markets.

Bond Yields

Global bond markets reflected diverging interest rate expectations across major economies. Australia's 10-year government bond yield eased 3.3 basis points to 4.963%, suggesting a modest decline in domestic borrowing costs and a relatively stable outlook for monetary policy. In contrast, US Treasury yields continued to trend higher, with the 10-year yield rising 5.3 basis points to 4.675% and the 30-year yield edging up 0.6 basis points to 5.214%. The increase in long-dated US yields indicates that investors continue to price in persistent inflation risks and the prospect of higher interest rates for longer, despite recent equity market strength. Meanwhile, Japan's 10-year government bond yield remained elevated at 2.802%, reflecting tighter domestic financial conditions and expectations of further policy normalization by the Bank of Japan. Overall, elevated US yields warrant close monitoring, as they could influence global capital flows, equity valuations, and borrowing costs across international markets in the near term.

Key Drivers

• Wall Street rebounded strongly, with the Nasdaq leading gains as investors returned to AI and technology stocks. 
• Microsoft surged 15.5% after robust Q4 FY26 earnings, while Azure revenue grew 43%, boosting sentiment across the semiconductor sector. 
• Chipmakers rallied sharply, led by Micron (+18.3%), AMD (+13.0%), Intel (+11.3%), and Nvidia (+2.6%) following the recent correction. 
• US 30-year Treasury yield climbed to 5.21%, its highest level since early July, reinforcing expectations of higher interest rates for longer. 
• Apple reported record June-quarter revenue, but weaker-than-expected Services revenue weighed on investor sentiment in after-hours trading. 
• US Q2 GDP expanded at an annualised 1.5%, missing the 2.1% consensus forecast and slowing from 2.1% growth recorded in Q1.
• The Bank of England kept its policy rate at 3.75%, while signalling no immediate shift toward tighter monetary policy. 
• US strikes on IRGC targets and Iran's warning of retaliation kept tensions high, with the Strait of Hormuz remaining in focus. 
• The eurozone economy expanded 0.4% in Q2, surpassing expectations as AI-related investment and government spending supported growth.
• The Japanese yen surged more than 3% against the US dollar, fuelling speculation of potential official intervention in currency markets. 

ASX Company News

• Michael Hill International Limited (ASX: MHJ) reported preliminary FY26 group sales of AU$654.7 million, up 2.0% year-on-year and 3.9% on a constant-currency basis. Group same-store sales increased 3.0%, supported by growth of 4.8% in Australia, 7.0% in Canada, and 3.6% in New Zealand. Comparable EBIT is expected between AU$22.0 million and AU$24.0 million, representing growth of 44%–57% from AU$15.3 million in FY25, supported by stronger sales, stable margins, and disciplined cost control. The group closed eight stores and opened two, reducing its global network to 281 stores.
• Monadelphous Group Limited (ASX: MND) announced that its wholly owned subsidiary, Kerman Contracting, secured an approximately AU$165 million design and construction contract from Rio Tinto for the Brockman Syncline 1 project in Western Australia’s Pilbara region. The scope includes non-process infrastructure such as a heavy mine equipment workshop, equipment washdown facilities, tyre-change infrastructure, and fuel storage and refuelling facilities. Work is scheduled to commence in 2026 and conclude in 2028. The award builds on Monadelphous’ existing construction work at Brockman Syncline 1 and further strengthens Kerman’s forward order book and relationship with Rio Tinto.
• Ora Banda Mining Limited (ASX: OBM) reported further high-grade drilling results from its Little Gem Prospect, expanding the newly identified Sapphire lodes to more than 2.6 kilometres of strike and around 200 metres depth, with mineralisation remaining open. Key intercepts included 5.0 metres at 18.1 g/t gold, including 1.0 metre at 84.8 g/t, and 2.0 metres at 44.3 g/t, including 1.0 metre at 86.4 g/t. The Gem lode system has also been defined over more than 4.7 kilometres of strike. More than 360 drill holes have been completed, with a maiden Mineral Resource Estimate targeted for late CY2026.
• Capstone Copper Corp. (ASX: CSC) delivered record Q2 2026 revenue of US$739.7 million, up 36% year-on-year, while adjusted EBITDA reached a record US$354.0 million, marking a seventh consecutive quarterly high. Consolidated copper production was 51,759 tonnes at C1 cash costs of US$2.82 per pound, with Mantoverde producing a record 18,190 tonnes of sulphide copper. Net income attributable to shareholders increased to US$74.3 million, while net debt declined to US$674.9 million. Capstone maintained its FY26 production guidance of 200,000–230,000 tonnes and C1 cost guidance of US$2.45–US$2.75 per pound.

Key Economic Drivers (What to Watch Today)

• Long-term US Treasury yields continue to attract attention, with the 30-year yield at 5.21%, reflecting persistent higher-for-longer interest rate expectations. 
• Middle East tensions – Developments around the Strait of Hormuz remain in focus for global energy markets. 
• AI-driven tech earnings – Microsoft's strong results have reinforced optimism around AI spending and semiconductor demand.

Summary 

• ASX 200 futures indicate a strong opening, tracking gains across Wall Street. 
• US markets rallied, led by a sharp rebound in technology and AI-related stocks. 
• Microsoft surged 15.5% after delivering stronger-than-expected quarterly earnings. 
• Semiconductor stocks advanced strongly, with Micron, AMD, Intel and Nvidia posting solid gains. 
• Gold, silver and uranium strengthened, while oil ended lower. 
• US Treasury yields remained elevated, reinforcing higher-for-longer interest rate expectations. 
• US Q2 GDP growth slowed to 1.5%, missing market expectations. 
• The Bank of England kept interest rates unchanged at 3.75%. 
• The eurozone economy exceeded expectations, supported by AI investment and stronger government spending.

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