Global markets experienced a mixed bag on Friday with Wall Street closing lower as investors digested the latest economic data and anticipated Federal Reserve policy decisions.
The Dow Jones Industrial Average fell 0.7%, the S&P 500 declined by 1.3%, and the Nasdaq Composite dropped 2.2%.
Key indicators show a significant fall in commodity prices. Iron ore dropped to a six-week low of US$96.80 per tonne, while oil prices also saw considerable declines, with Brent crude settling around $US71.04 and WTI at $US67.02.
Within the US market, sectors varied. While some saw robust performance, others lagged behind. Commodities were a clear drag on overall sentiment. In the realm of US indices, the Nasdaq underperformed significantly. The lack of momentum in Trump-related trades is also a major factor. Investors are now carefully monitoring the Federal Reserve's potential shift in interest rate policies.
Looking at the Australian market, with S&P/ASX 200 futures are 0.3% lower at 8296 points.
Turning to company news, there's a notable legal development for NAB. The bank is currently facing litigation by the Australian Securities and Investments Commission (ASIC) over alleged contraventions of the National Credit Code between 2018 and 2023. This could be a significant headwind for their performance. In positive corporate news, FleetPartners reported a slightly lower net profit of $80 million in FY24, but announced a $30 million share buy-back. This provides some reassurance against a potentially gloomy backdrop.
Looking ahead to the day on the ASX, investors should keep a close eye on a few key areas. Elders will be releasing their annual results, which could offer insights into the broader economic picture. WAM Leaders will also be trading ex-dividend. This will potentially affect the share price. Westpac, Macquarie, and CBA are facing a significant impact from the rural bank levy, potentially in the vicinity of $250 million. These factors, along with the subdued global market sentiment, will be key elements shaping trading.
In summary, the ASX is expected to open lower, mirroring the downtrend seen on Wall Street and influenced by lower commodity prices. The performance of Elders' annual results, the WAM Leaders ex-dividend trade, and the rural bank levy impact on major banks are all noteworthy events to keep an eye on throughout the day.
