ASX set to open higher as Wall Street rallies
The S&P/ASX 200 futures rose 5 points or 0.05% at 8:30 am despite Wall Street’s strong finish overnight. The S&P 500 and Nasdaq reached fresh all-time highs after rebounding from session lows in the last trading hour. The indices reacted to trade developments between the United States and multiple partners.
ASX 200 chart as of 11:05 AM AEST
Trade headlines support global risk appetite
The US and China finalised a “trade understanding” with China agreeing to supply rare earths. The US will cancel restrictive countermeasures.
US Commerce Secretary Howard Lutnick said the US aims to reach deals with 10 major trade partners.
Trump halted talks with Canada due to its proposed digital services tax targeting domestic and foreign online firms.
The EU and US remain optimistic about reaching an agreement by 9 July. The EU seeks a mutually beneficial deal but prepares for countermeasures.
Taiwan said it made “constructive progress” in its second round of trade negotiations with the US.
MotorCycle Holdings makes strategic acquisition
MotorCycle Holdings announced a binding deal to acquire selected business assets of Peter Stevens and Harley-Heaven. The acquisition is conditional on obtaining motor dealer licences and employee acceptance across states. The deal is valued between $7 million and $9 million, subject to adjustments and motorcycle inventory. MotorCycle Holdings will fund the transaction using cash reserves and credit facilities. The company expects the acquisition to boost earnings.
Oil records steepest weekly fall in two years
WTI crude dropped 12.0% to close at US$64.7 per barrel last week, the largest decline in two years. The fall followed easing geopolitical risks after an Israel-Iran ceasefire reduced war premiums. Goldman Sachs said options markets now price only a 4% chance of Strait of Hormuz disruption. Polymarket data showed the probability of Iran closing the Strait reached 60% on 22 July. Trump indicated China could purchase Iranian oil despite sanctions, increasing future energy demand.
Pathology sector faces regulatory pressure
Health Minister Mark Butler warned Sonic Healthcare, Healius, and Australian Clinical Labs about possible price-fixing investigations. This follows the companies’ campaign against funding cuts starting 1 July, threatening to halt bulk-billing essential tests. The rebate changes could cut industry revenue by $100 million annually, including a 70% rebate cut for specific tests. Butler criticised the companies’ stance, citing strong pandemic-era profits and calling their claims a “scare campaign.” He may mandate bulk-billing or refer price-fixing concerns to the ACCC. From 1 July, rebates for labour-intensive tests like haematology and immunology will rise for the first time in 25 years. The pathology sector argued that this increase covers only one-third of testing items. Rising operational costs remain a key concern. About 1 million Australians undergo pathology tests weekly, including 100,000 vitamin B12 tests.
GenusPlus wins major battery storage project
GenusPlus Group secured a $105 million contract to build the Reeves Plains Battery Energy Storage System in South Australia. The company will handle the project’s design, construction, and commissioning phases. GenusPlus recently upgraded its FY25 EBITDA growth forecast to 28–32%, up from a prior 20% outlook. The stock rallied 3.3% on 26 June but ended the day down 0.5%, reflecting year-to-date gains of 47%.
MinRes exits Yilgarn iron ore business
Mineral Resources finalised the sale of its Yilgarn iron ore operations to Yilgarn Iron Investments. The company previously announced plans to halt shipments by 31 December 2024, citing poor financial viability. Factors influencing the decision included the short mine life of five sites and high capital costs for new resources. The sale terms remain undisclosed and deemed immaterial. MinRes will retain gold and lithium rights in the region.
West African Resources achieves milestone
West African Resources poured its first gold from the Kiaka Project in Burkina Faso. Construction finished in Q2 2025, with ramp-up proceeding smoothly and recovery rates consistently exceeding 92%. Chairman Richard Hyde said, “First gold at Kiaka is a major milestone for West African Resources.” He added the development supports their goal of producing over 500,000 ounces annually by 2030.
Electro Optic Systems revenue misses estimates
Electro Optic Systems forecasted H1 2025 revenue between $40–45 million, missing Bell Potter’s estimate of $64 million. The guidance includes $12 million in revenue unlocked from a long-delayed Middle East contract. EOS expects to receive $60 million in cash from the customer under the revised agreement. The company’s order backlog now totals $170 million, up 24% since December 2024. The revenue outlook still represents a 33% shortfall compared to expectations. Bell Potter had already assumed a 40/60 H1-H2 split in FY25 revenue.
Liontown management shake-up continues
Liontown confirmed CFO Jon Latto and COO Adam Smits will step down from their roles. Head of Finance Graeme Pettit will serve as interim CFO while a replacement is sought. Ryan Hair, currently CFO of Wesfarmers’ Covalent Lithium Project, will become Liontown’s new COO in August. Morningstar data shows neither Latto nor Smits hold Liontown shares.
Superloop lifts FY25 EBITDA guidance
Superloop upgraded its FY25 EBITDA outlook to above $91 million, up from prior guidance of $83–88 million. The company attributed the improvement to continued strong performance across the business. The revised figure exceeds Citi’s FY26 EBITDA forecast of $86 million by 5.8%. Superloop shares rose 4.0% following the announcement.
UBS slashes Reece target by 24%
UBS reduced its target price for Reece from $17.70 to $13.50, maintaining a Sell rating. The company guided to FY25 EBIT of $548–558 million, 12% below second-half expectations. Australian and New Zealand volumes remain weak despite recent rate cuts. US housing starts slowed amid high mortgage rates and affordability issues. UBS warned that Reece trades at a 31x forward PE, above its 29x long-term and 22x peer averages. The analysts said uncertain housing demand and trade tensions could weigh on performance.
