ASX200 Index

The ASX200 lost its mojo last week falling 1% while the US S&P 500 advanced another +1.5%, making new highs into the weekend. Locally, Michele Bullock’s balanced but less dovish speech than many hoped for weighed on rate-sensitive names. However, the influential “Big Four Banks” were the largest drag on the local bourse with CBA retreating 5.3%, closing 10% below June’s all-time high – remember we can’t go up without the banks! News over the weekend that the EU and US have reached a trade deal should help the market this morning, but it will be interesting to see if it can evolve from last week’s more sombre mood.

• On Saturday morning, the SPI Futures were calling the ASX200 to open marginally lower this morning, with the iron ore names likely to be a small drag early, though we suspect things will be better than that.
• Although we have remained resolutely bullish on equities through 2025, we are now adopting a more cautious approach in the coming weeks.