Headline

• ASX 200 futures point to a weaker open, down 79 points (-0.88%).
• Wall Street closed lower as US strikes on Iranian IRGC targets heightened geopolitical concerns.
• Brent crude jumped around 5% to US$95 a barrel, extending its rise to roughly 35% since the 2 July low.
• US diesel futures surged 6% to record highs, adding to concerns over energy-driven inflation.
• Global bond yields climbed sharply, with Japan’s 10-year yield reaching 3% for the first time since 1996.
• September Fed rate-hike expectations rose to nearly 70%, increasing pressure on equities.

Global Markets Overview

Global equity markets traded lower as investors adopted a cautious stance amid rising bond yields, higher energy prices and ongoing geopolitical tensions. US equities remained under pressure, with technology stocks experiencing heavier selling as elevated yields weighed on growth-oriented companies. Blue-chip and large-cap shares also declined, indicating weaker investor sentiment and reduced appetite for riskier assets.European equities followed the negative trend, although selling pressure remained relatively moderate. Canadian equities also weakened as global risk aversion and volatility across commodity markets affected sentiment.In the Asia-Pacific region, Japanese equities declined as rising domestic bond yields weighed on sentiment, while Indian equities also moved lower amid cautious global cues. New Zealand’s NZX 50 declined as investors maintained a defensive stance. Overall, global markets remained under pressure as geopolitical developments, energy prices and interest-rate expectations continued to influence near-term investor sentiment.Commodities & Crypto

Commodity markets displayed a clear risk-off tone, with precious and industrial metals coming under selling pressure while crude oil moved sharply higher. Gold declined as rising bond yields reduced the relative appeal of non-yielding assets, while silver experienced heavier weakness amid pressure across the metals complex. Copper also retreated, reflecting concerns that tighter financial conditions and geopolitical uncertainty could weigh on global industrial demand.Energy markets moved in the opposite direction, with WTI crude recording a strong advance as escalating US-Iran tensions increased concerns over potential supply disruptions and energy flows. Uranium prices also declined during the session, reflecting weaker market sentiment and increased selling pressure across the broader commodities complex.Cryptocurrency markets followed the decline in traditional risk assets, with Bitcoin moving lower as investors reduced exposure to volatile investments. Overall, commodity and cryptocurrency markets remained under pressure, with higher bond yields and cautious investor sentiment weighing on metals and Bitcoin, while geopolitical tensions drove oil prices higher.Bond Yields

Global bond markets remained under pressure as investors reassessed the outlook for inflation, interest rates and monetary policy. Australian government bond yields moved higher, reflecting expectations that persistent inflationary pressures could keep domestic interest rates elevated for longer. Rising energy prices have also added to concerns over the inflation outlook and the future path of monetary policy.Japanese government bond yields remained elevated, with Japan’s 10-year yield reaching 3% for the first time since 1996, highlighting growing pressure in the country’s fixed-income market. In the United States, Treasury yields remained near elevated levels. The benchmark 10-year yield advanced as investors priced in the possibility of tighter monetary policy, while the longer-dated 30-year yield was relatively stable. Overall, elevated sovereign yields continue to tighten financial conditions and may remain a key headwind for equity valuations, particularly across interest-rate-sensitive and growth-oriented sectors.Key Drivers

• US equities closed lower, with the S&P 500 near a one-month low and 2.1% below its 13 August record high.
• Brent crude surged 5% to around US$95 a barrel following a fresh wave of US strikes against Iranian targets.
• US 10-year Treasury yields climbed to around 4.79%, reaching their highest level since November 2023.
• Australia’s 10-year bond yield recorded its sharpest rise in five months, amid concerns that higher Japanese yields could reduce demand for Australian government debt.
• Japan’s 10-year government bond yield reached 3%, its highest level since 1996, intensifying pressure across global bond markets.
• UK government bonds faced heavy selling, with gilt yields rising as markets increased expectations for further Bank of England tightening.
• High-beta US stocks underperformed, signalling a clear shift toward defensive positioning as geopolitical and rate concerns intensified.
• Semiconductor stocks led technology losses, with AMD, Micron and Nvidia declining during the session.
• US housing stocks weakened sharply after construction spending fell to its lowest level since October 2023.
• Dell shares gained around 6% after hours as quarterly revenue and adjusted earnings exceeded expectations, supported by strong AI-server demand.
• Palo Alto Networks reported strong quarterly growth, although its shares declined despite revenue and adjusted earnings exceeding expectations.
• Apple shares advanced after a leadership transition, with John Ternus taking over as CEO and Tim Cook moving to executive chairman.
• US forces launched fresh strikes on IRGC targets in Iran following attempted attacks on commercial shipping and American personnel.
• Strikes reportedly targeted several locations along Iran’s southern coast, including Bandar Abbas, Jask and Chabahar.
• President Trump warned of stronger military action if Iran retaliates against the latest US strikes.
• Two oil tankers were reportedly struck in the Strait of Hormuz, heightening concerns over security along the critical energy shipping route.
• Iran signalled willingness to de-escalate tensions, raising hopes that the conflict may not return to full-scale warfare.
• Euro-area inflation accelerated in August, moving further above the European Central Bank’s target and reinforcing monetary-policy concerns.
• US manufacturing activity slowed in August, while China’s manufacturing PMI strengthened and remained in expansion territory for a ninth consecutive month.

ASX Company News

• EQ Resources Limited (ASX: EQR) reported consolidated August 2026 production of 19,068 mtu, up 34% from July and representing its second-highest monthly production on record. Consolidated sales reached 17,246 mtu, generating record monthly revenue of AU$55.1 million for the second consecutive month at an average realised price of US$2,269 per mtu. Barruecopardo produced a record 12,719 mtu and generated AU$35.2 million in revenue, while Mt Carbine produced 6,349 mtu and delivered record revenue of AU$19.9 million.
• Centrepoint Alliance Limited (ASX: CAF) completed the acquisition of a 51% controlling interest in SEQ Advice Group on 1 September 2026 after satisfying all transaction conditions. Centrepoint made an initial Tranche 1 cash payment of AU$0.5 million, with the remaining consideration subject to FY27 maintainable EBITDA and completion adjustments and expected to be settled on a deferred, debt-funded basis in September 2027. The transaction also provides a pathway to increase ownership to 75%, while Centrepoint holds a call option over the remaining 25% interest until September 2036.
• Southern Cross Gold Consolidated Limited (ASX: SX2) reported high-grade drilling results from its 100%-owned Sunday Creek Gold-Antimony Project, led by 0.6 metres at 993.2 g/t AuEq, including 972.0 g/t gold and 8.9% antimony, from 808.5 metres. The result ranked as the ninth-best composite intersection at Sunday Creek and extended the A130 vein set approximately 40 metres deeper. Apollo East drilling also returned 5.1 metres at 27.2 g/t AuEq, including 2.6 metres at 51.1 g/t AuEq, while the company has 11 rigs operating, results pending from 72 holes and a 200,000-metre drilling program continuing through Q1 2027.

Stocks trading ex-dividend today

• Australian Clinical Labs Limited (ASX: ACL) – AU$0.092
• Australian Ethical Investment Limited (ASX: AEF) – AU$0.10
• Downer EDI Limited (ASX: DOW) – AU$0.163
• Integrated Research Limited (ASX: IRI) – AU$0.05
• Karoon Energy Limited (ASX: KAR) – AU$0.012
• Liberty Financial Group Limited (ASX: LFG) – AU$0.23
• Medibank Private Limited (ASX: MPL) – AU$0.109
• Mercury NZ Limited (ASX: MCY) – AU$0.141
• Monadelphous Group Limited (ASX: MND) – AU$0.59
• Newmont Corporation (ASX: NEM) –  US$ 0.26
• Objective Corporation Limited (ASX: OCL) – AU$0.08
• Origin Energy Limited (ASX: ORG) – AU$0.30
• PLS Group Limited (ASX: PLS) – AU$0.05
• Prime Financial Group Limited (ASX: PFG) – AU$0.009
• SEEK Limited (ASX: SEK) – AU$0.25
• Shaver Shop Group Limited (ASX: SSG) – AU$0.055
• Shriro Holdings Limited (ASX: SHM) – AU$0.01
• Solvar Limited (ASX: SVR) – AU$0.085
• Sonic Healthcare Limited (ASX: SHL) – AU$0.63
• Steadfast Group Limited (ASX: SDF) – AU$0.128
• Tribeca Global Natural Resources Limited (ASX: TGF) – AU$0.10
• Universal Store Holdings Limited (ASX: UNI) – AU$0.17
• Whitehaven Coal Limited (ASX: WHC) – AU$0.06
• Yancoal Australia Limited (ASX: YAL) – AU$0.07

Key Economic Drivers (What to Watch Today)

• 9:00 am AEST – Australia Ai Group Industry Index: Provides an early indication of business activity and operating conditions across key Australian industries.
• 11:30 am AEST – Australia Q2 GDP Growth: The key domestic release, with growth expected at 1.8%. Any significant deviation could influence expectations for the Australian economy, RBA policy and the Australian dollar.
• 11:45 pm AEST – Bank of Canada Rate Decision: The Bank of Canada is expected to hold its policy rate at 2.25%. Markets will closely assess the accompanying commentary for signals on inflation, economic growth and the future direction of monetary policy.
• Global Bond Yields: Elevated sovereign yields remain a key market focus, with rising borrowing costs potentially weighing on equity valuations, particularly growth and interest-rate-sensitive sectors.
• Oil Prices and Iran Tensions: Investors will closely monitor crude oil prices and developments in the US-Iran conflict, with further escalation potentially increasing inflation and energy-supply concerns.

Summary 

• ASX 200 futures point 79 points lower (-0.88%) as Wall Street falls amid rising bond yields and surging oil prices.
• Wall Street closed lower as escalating US-Iran tensions and rising bond yields pressured sentiment.
• Brent crude surged around 5% to US$95 a barrel, extending its rise to roughly 35% since the 2 July low.
• US diesel futures jumped 6% to record highs, increasing concerns over energy-driven inflation.
• Japan’s 10-year bond yield reached 3%, its highest level since 1996.
• US 10-year Treasury yields moved higher, as expectations for tighter monetary policy increased.
• September Fed rate-hike expectations climbed to nearly 70%, adding pressure to equity markets.
• Gold, silver and copper declined, as higher yields and cautious investor sentiment weighed on metals.
• Bitcoin moved lower alongside traditional risk assets, reflecting reduced appetite for volatile investments.
• A cautious market stance remains warranted as escalating US-Iran tensions and higher oil prices reinforce inflation risks, while elevated sovereign bond yields tighten financial conditions and place additional pressure on global equity valuations.

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