Morning brief key updates ahead of ASX opening
ASX futures pointed to a modest start on Friday, with the S&P ASX 200 down 0.4% at 7 a.m. Sydney time, suggesting a softer opening for Australian equities.
Global cues shape local sentiment
Wall Street closed at record levels, offering a mixed backdrop for Australian investors. The Dow Jones Industrial Average rose 0.13% to 53,840, while the S&P 500 climbed 0.65% to a new high of 7,799. The Nasdaq Composite added 0.81% to finish at 26,803. Those gains came after U.S. producer‑price data for July showed inflation easing to 4.7% when food and energy were excluded, down from 5.5% a year earlier.
The drop in inflation expectations pushed the probability of a September rate hike below 40%, a shift that helped lift equities despite lingering concerns. Federal Reserve officials remain divided; the Richmond Fed president sees room for rates to stay steady, whereas the Cleveland Fed head still favors an increase.
Across Europe, the Euro Stoxx 50 edged up 0.18% to 6,545, the UK FTSE slipped 0.56% to 10,773, and Germany’s DAX fell 0.12% to 26,300. In the broader market, the Russell 2000 rose 0.24% to 3,053, while French CAC 40 slipped 0.28% to 8,651.
Australian market moves and corporate headlines
The ASX 200 index itself opened at 9,189, down 0.23% in early trading. Commodity prices showed mixed trends: gold fell 1.33% to $4,349.79 per ounce, silver dropped 1.36% to $64.43, and oil prices slipped more than 2% with WTI at $81.14 a barrel.
In corporate news, AMD announced a $4.75 billion bond issuance, its largest to date, aimed at financing its artificial‑intelligence initiatives. Meanwhile, Hertz shares plunged nearly 12% after Pershing Square exited a share sale it described as mishandled. Cisco’s stock fell almost 9% despite posting earnings and revenue that beat expectations.
OpenAI replaced its chief revenue officer within the past year, reflecting ongoing leadership changes in the AI sector. In China, semiconductor firm CMXT surpassed Tencent to become the nation’s most valuable listed company, with a market cap around $524 billion.
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Investors who contributed $1.2 million to pop star Selena Gomez’s Wondermind startup have filed a lawsuit, alleging the promised platform never materialized.
Anthropic’s potential record‑size IPO
AI startup Anthropic is reportedly preparing for an initial public offering as early as October. Some investors are modeling a valuation above $2 trillion, with a few suggesting a possible $3 trillion figure. If realized, the float would be the largest ever, driven by expectations that Anthropic’s annualised revenue run rate could triple by the end of 2026.
Analyst Nigel Green of de Vere highlighted the pricing risk, noting that “exceptional and correctly priced are two different questions, and right now the gap between them is wide.” He warned that relying on unaudited, extrapolated numbers in a market already wary of AI multiples adds significant uncertainty.
Investors remain wary.
For many Australian investors, the combination of a soft ASX start and a global environment of easing inflation but mixed policy signals creates a cautious atmosphere. While record‑high U.S. indices may boost confidence, the divergent views among Fed officials and the looming uncertainty around AI‑centric IPOs suggest that market participants will likely watch earnings and macro data closely before committing to larger positions.
Trading halts and sector updates
Several ASX‑listed companies faced trading interruptions on Friday. Accent Resources halted trading after an ASX query, Equus Energy paused due to a gas sales agreement, and Hamelin Gold suspended activity while arranging a capital raise. McPherson’s shares were frozen pending a Federal Court ruling, True North Copper halted for a capital raise, and Viridis Mining stopped after releasing definitive feasibility results.
Junior copper developers are seeking to narrow valuation gaps with larger miners as commodity prices climb. GCM Corporation introduced new graphite technology aimed at mitigating heat challenges in AI hardware, while Mount Ridley Mines and Accent Resources announced metallurgical breakthroughs that could boost their market profiles.
