ASX 200 Live Today - Thursday, 16th July
The ASX 200 futures are up 15 points (+0.17%) as we kick off the day. Here's a breakdown of the key developments from the overnight session and what to watch for today.
Major US Benchmarks Up for a Second Straight Session
The S&P 500, Nasdaq, and Dow all rose for a second consecutive day, led by a rotation back into Mag-7 names like Apple (+4.0%), Alphabet (+3.6%), and Meta (+3.0%). This positive sentiment was driven by a second soft inflation print in a week, slightly easing Fed rate hike expectations and sending bond yields lower.
US June Producer Prices Cooler-than-Expected
June producer prices came in cooler than expected, with the core PPI rising 0.2% month-over-month (m/m) and the annual rate slowing to 4.7%. This suggests easing price pressures without a stall in growth. The headline PPI fell 0.3% m/m, the coolest monthly reading since May 2024, taking the annual rate to 5.5%.
PayPal Takeover Approach
PayPal jumped 17% on a potential takeover approach from Stripe and Advent, valuing the company at over US$53 billion. This development adds to the ongoing M&A activity in the tech space.
ASML Raises Full-Year Outlook
ASML, the lithography maker, raised its full-year outlook after securing nearly all EUV orders needed for 2027. The new forecast incorporates demand from Elon Musk's Terafab project, indicating strong demand for AI chips.
United Airlines Guidance Lifted
United Airlines raised its full-year guidance despite a near-80% jump in fuel costs that halved earnings year-over-year. The airline's strong top-line growth and EPS beat demonstrate resilience in the face of rising costs.
Wall Street Rotation
The market rotation from semiconductors to megacap tech and rate-sensitive cyclicals continued, with Apple, Amazon, and Alphabet rising around 3-4% and Microsoft up nearly 3%. Meanwhile, Micron, Intel, and AMD fell 3-8%.
What to Watch Today
- Inflation Data: Keep an eye on inflation data releases, as they will influence market sentiment and Fed policy expectations.
- Corporate Earnings: Monitor earnings reports from ASX-listed companies, especially those in the resources and tech sectors.
- Global Economic Indicators: Stay tuned to global economic indicators, particularly those related to the US and China, as they can impact market sentiment and asset prices.
In summary, the ASX 200 futures are off to a positive start, influenced by the positive performance of US benchmarks and easing inflation expectations. Today's session will likely be driven by market sentiment, corporate earnings, and global economic developments.
