The ASX 200 is trading down 0.22% at 8,875.4 (10:37 am AEDT), extending mild early losses amid mixed global leads. SPI Futures are 8,882 (–0.24%), reflecting investor caution ahead of the RBA’s 2:30 pm policy decision. Sector performance is uneven, with selling concentrated in Materials and Energy while A-REITs and Tech provide limited support.
2. Wall Street Rallies, Cyclicals Lead
US markets were split overnight as earnings optimism in growth stocks offset cyclical weakness:
Dow Jones: –0.48%
S&P 500: +0.17%
Nasdaq: +0.46%
Sector leadership was narrow — Consumer Discretionary (+1.70%), Information Technology (+0.39%), and Health Care (+0.13%) advanced, while Materials (–0.56%), Consumer Staples (–0.47%), and Financials (–0.43%) lagged.
Traders remain cautious ahead of major central bank updates and geopolitical developments.
3. Sector Performance — ASX
Sectors are mixed with 7 of 11 sectors in the red.
Leaders: A-REITs (+0.44%), Information Technology (+0.39%), Industrials (+0.34%)
Laggards: Utilities (–0.77%), Materials (–0.72%), Energy (–0.57%), Consumer Staples (–0.21%)
A-REITs are rebounding after a 3.8% five-day slide, while Materials continue to weaken on lower copper and gold prices.
4. Commodity Watch
Gold: –0.09% to US$3,998/oz — consolidating above US$3,870 support after a pullback from record highs.
Copper: –1.15% to US$5.03/lb, pressured by subdued industrial activity.
WTI Oil: +0.08% to US$60.98/bbl — steady as OPEC headlines and sanctions weigh on sentiment.
OPEC Update:
Oil prices found support after OPEC announced it would pause production hikes through Q1 2026, responding to heightened supply uncertainty amid US sanctions on Russian oil majors Rosneft and Lukoil.
Broker Move: Wagners Holding (WGN) upgraded to Accumulate (from Hold) by Bell Potter; target lifted to $3.10 (from $2.90)..
6. Macro Economic Data:
2:30 pm AEDT:
RBA Monetary Policy Decision
RBA Statement on Monetary Policy
Markets expect the RBA to hold rates steady but will scrutinize commentary on inflation persistence and wage pressures. A hawkish tone could weigh on REITs and Financials, while a dovish stance may lift discretionary and tech names.
7.Kapitales Research Take
The ASX is drifting lower in early trade, pressured by weaker commodities and cautious sentiment ahead of the RBA. Gains in Tech and A-REITs are offering limited offset to broad sector softness.
Oil’s steady tone and OPEC’s output pause add a layer of geopolitical risk that may support energy equities later in the week.
We expect the market to trade sideways (8,860–8,910) until the RBA decision at 2:30 pm AEDT, which is likely to set the tone for afternoon trade and the AUD.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
ASX 200 Morning Wrap: Market Softens as Traders Await RBA Decision
1. ASX 200 Opens Lower:
The ASX 200 is trading down 0.22% at 8,875.4 (10:37 am AEDT), extending mild early losses amid mixed global leads. SPI Futures are 8,882 (–0.24%), reflecting investor caution ahead of the RBA’s 2:30 pm policy decision. Sector performance is uneven, with selling concentrated in Materials and Energy while A-REITs and Tech provide limited support.
2. Wall Street Rallies, Cyclicals Lead
US markets were split overnight as earnings optimism in growth stocks offset cyclical weakness:
Dow Jones: –0.48%
S&P 500: +0.17%
Nasdaq: +0.46%
Sector leadership was narrow — Consumer Discretionary (+1.70%), Information Technology (+0.39%), and Health Care (+0.13%) advanced, while Materials (–0.56%), Consumer Staples (–0.47%), and Financials (–0.43%) lagged.
Traders remain cautious ahead of major central bank updates and geopolitical developments.
3. Sector Performance — ASX
Sectors are mixed with 7 of 11 sectors in the red.
Leaders: A-REITs (+0.44%), Information Technology (+0.39%), Industrials (+0.34%)
Laggards: Utilities (–0.77%), Materials (–0.72%), Energy (–0.57%), Consumer Staples (–0.21%)
A-REITs are rebounding after a 3.8% five-day slide, while Materials continue to weaken on lower copper and gold prices.
4. Commodity Watch
Gold: –0.09% to US$3,998/oz — consolidating above US$3,870 support after a pullback from record highs.
Copper: –1.15% to US$5.03/lb, pressured by subdued industrial activity.
WTI Oil: +0.08% to US$60.98/bbl — steady as OPEC headlines and sanctions weigh on sentiment.
OPEC Update:
Oil prices found support after OPEC announced it would pause production hikes through Q1 2026, responding to heightened supply uncertainty amid US sanctions on Russian oil majors Rosneft and Lukoil.
5. Corporate Earnings in Focus
Ex-Dividend: WAM Leaders (WLE) – $0.047
Dividends Paid: Alliance Aviation (AQZ), Harvey Norman (HVN), Mantle Minerals (MTL)
Broker Move: Wagners Holding (WGN) upgraded to Accumulate (from Hold) by Bell Potter; target lifted to $3.10 (from $2.90)..
6. Macro Economic Data:
2:30 pm AEDT:
RBA Monetary Policy Decision
RBA Statement on Monetary Policy
Markets expect the RBA to hold rates steady but will scrutinize commentary on inflation persistence and wage pressures. A hawkish tone could weigh on REITs and Financials, while a dovish stance may lift discretionary and tech names.
7. Kapitales Research Take
The ASX is drifting lower in early trade, pressured by weaker commodities and cautious sentiment ahead of the RBA. Gains in Tech and A-REITs are offering limited offset to broad sector softness.
Oil’s steady tone and OPEC’s output pause add a layer of geopolitical risk that may support energy equities later in the week.
We expect the market to trade sideways (8,860–8,910) until the RBA decision at 2:30 pm AEDT, which is likely to set the tone for afternoon trade and the AUD.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au