Pre-Market Report – Friday 26 July: US Markets Stabilise - SPI Jumps 33 - Gold Drops 1.3%

Wall Street ended mixed overnight, following its worst performance since 2022 yesterday as markets began to doubt the sustainability of the AI-driven rally. The Dow edged 81 points higher (+0.20%). Up 585 points at best. Down 36 points at worst. The Russell 2000 gained 1.26% recouping most of the previous days' losses. Approximately 300 companies in the S&P 500 advanced, but the index fell 0.51%, falling below 5,400. The S&P 500 is now down ~5% from its all-time high. The NASDAQ lost 0.93%, weighed down by losses in mega-cap tech stocks. In economics, US Q2 GDP showed the economy grew at 2.8% QonQ, significantly above expectations of 1.9% and the prior quarters 1.4%. Initial jobless claims dropped more than expected by 10k, and US durable goods orders unexpectedly fell 6.6% MonM in June after four consecutive monthly increases. Longer dates treasury yields fell on GDP numbers. 10Y yield fell 4.1bps, while the 2Y yield finished near flat. USD Index flat, and Bitcoin up a touch. In Asia, Chinese blue chips stocks the Shenzhen fell 0.22% and Hong Kong's Hang Seng 1.77%, finding little support from Beijing's latest easing step.

ASX to rise. SPI futures up 33 points (+0.42%).

• Oil edges higher on upbeat US economic data.
• Gold hits over 2-week low as investors book profit; US data in focus.
• Iron ore drops further as strong supply, China steel sell-off weigh.
• Copper falls below $9,000 level, prompting Chinese buying.
• Brazil government mulls 'tougher measures and sanctions' on Vale, minister says.
• Anglo American has a job to exit post-BHP hole.

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