The ASX is expected to open lower this morning ahead of the 11.30am AEST release of July inflation data. The ASX SPI 200 Futures is down 28 points (-0.35%) to 7,996.
CBA economists expect the ABS to announce a 3.4% annual rise in the Consumer Price Index for July, from the 3.8% print in June, as temporary energy subsidies likely weighed on the index.
The CBA note said, "We note the Reserve Bank of Australia has indicated in the past it focuses on underlying inflation trends. Nevertheless, the market may bring forward its pricing for the start of an interest rate cutting cycle and pull AUD/USD lower.”
Woolworths reports
Woolworths has posted a 5.6% lift in full-year sales to $67.922 billion and a net profit, before significant items, of $1.711 billion.
However, the retailer saw a 93.3% drop in full-year net profit to $108 million after booking $1.7 billion in impairments related to its stake in drinks business Endeavour and its struggling New Zealand supermarket arm.
Woolies maintained underlying earnings growth thanks to improving performance at its Australian supermarkets.
Shareholders were rewarded with a special dividend of 40c per share. The company also declared a final dividend of 57c per share, down from 58c in 2023, payable on September 30.
This follows the $1.1 billion full-year profit posted by Coles, which is up almost 2% on the previous year. Revenues rose 5.7% to a record $43.6 billion yet Coles managing director and CEO Leah Weckert has rejected accusations of price gouging.
The supermarket earnings reports come ahead of an ACCC report into price setting by Australia's major supermarkets.
Other annuals
Tabcorp has booked a massive $1.4 billion loss for the year, much worse than analyst expectations of a $695.7 million loss. The underlying result was a 67% drop in profit from FY23 to $28 million.
The company expects the macro-economic environment to remain challenging for customers given expectations around interest rates remaining elevated and persistent high inflation.
Chief executive-elect Gillon McLachlan said, "the reality is the company is only part way through a turnaround and we need to continue to enhance execution to create greater value".
Flight Centre (ASX:FLT) has reported underlying profit before tax of $320.4 million in FY24, up from $138.8 million in FY23 and 2.6% above Bloomberg's consensus estimate of $311.9 million.
Statutory net profit more than doubled to $139.6 million from $47.5 million to meet guidance.
ResMed shares rose 7.3% to US$242.25 in US trading, as analysts shared details about the company’s changing stance on the impact of weight-loss drugs on its business, now viewing GLP-1 drugs as a 'tailwind'.
Also issuing earnings today are APA, Adairs, EML Payments (ASX:EML), Fortescue (ASX:FMG), Karoon Energy, Kelsian, Flight Centre, Lynas Rare Earths, Nine, Pacific Smiles, Paladin Energy (ASX:PDN) and Smartgroup.
Overseas markets
US sharemarkets rose slightly on Tuesday ahead of a highly anticipated quarterly report from heavyweight chipmaker Nvidia on Wednesday.
- Nvidia's shares climbed 1.5% and it was the most traded company on US stock exchanges, according to LSEG data.
- Shares of insulin maker Insulet jumped 6.6% after the US Food and Drug Administration cleared use of the Omnipod 5 automated delivery system for adults with Type 2 Diabetes.
- Tesla (NASDAQ:TSLA) fell 1.9% after Canada said it would impose a 100% tariff on the imports of Chinese electric vehicles.
- Paramount Global (NASDAQ:PARA) slid 7.2% after Edgar Bronfman Jr. abandoned his bid for the company, clearing the way for Skydance Media to take control of the media empire.
The Dow Jones index rose by 10 points or 0.02% to close at a record high. The S&P 500 index gained 0.2% and the Nasdaq index added 29 points or 0.2%.
European sharemarkets rose on Tuesday. The travel and leisure and banking sectors were the top gainers for the day, rising 0.9% and 0.7%, respectively.
Spanish bank Banco Santander (BME:SAN) (LSE:BNC) rose by 2.5% and Ryanair (NASDAQ:RYAAY) jumped 4.6% after the airline upgraded its summer airfare outlook.
Germany's economy (GDP) shrank by 0.1% in the June quarter (survey: -0.1%).
- The continent-wide FTSEurofirst 300 index gained 0.2%.
- In London, the UK FTSE 100 index also added 0.2%.
Currencies
Currencies were stronger against the US dollar in European and US trade.
- The Euro rose from US$1.1150 to US$1.1189 and was near US$1.1185 at the US close.
- The Aussie dollar lifted from US67.70 cents to US67.95 cents and was near US67.90 cents at the US close.
- The Japanese yen firmed from 145.15 yen per US dollar to JPY143.93 and was near JPY143.95 at the US close.
Commodities
Global oil prices fell about 2% on Tuesday on worries that slower economic growth in the US and China could reduce demand for energy, especially after prices surged over 7% during the prior three days.
- The Brent crude price fell US$1.88 or 2.3% to US$79.55 a barrel.
- The US Nymex crude price slid US$1.89 or 2.4% to US$75.53 a barrel.
Base metal prices climbed on Tuesday.
- Copper futures lifted 0.5%, to their highest in nearly six weeks, with buying triggered by improving demand in China and US rate cut hopes.
- Aluminium futures added 0.2%.
The gold futures price fell US$2.30 or 0.1% to US$2,552.90 an ounce on Tuesday, as markets await inflation data that could shed light on the scale of an expected interest rate cut from the US Federal Reserve next month. Spot gold was trading near US$2,524 an ounce at the US close.
Iron ore futures rose by US15 cents or 0.2% to US$98.45 a tonne on Tuesday, boosted by growing buying appetite from steelmakers in China ahead of the upcoming peak demand season.
What’s happening in small caps?
Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has completed stimulation operations at its multi-well Flames-Maroons Development Plan in the core of the southern SCOOP Play in the Anadarko Basin.
Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has commenced a hydraulic mining trial at its Kasiya Rutile-Graphite Project in Malawi as part of the ongoing Pilot Mining and Land Rehabilitation Program.
Horizon Minerals Ltd (ASX:HRZ) has recognised “potential to grow the higher-grade core within the Nimbus resource at depth down plunge and along strike” at its Nimbus silver-zinc project in the Goldfields of Western Australia.
Helix Resources Ltd (ASX:HLX) has shared a compilation of historical results from the Muriel Tank gold project in central NSW where it is undertaking new exploration for gold and copper.
Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) has submitted a notice of intent to drill 24 exploration holes to test a 2-kilometre strike extension at its Yellow Cat Uranium and Vanadium Project in south-eastern Utah, USA.