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The Australian Securities Exchange (ASX) is one of the world's top 20 exchanges, hosting over 2,000 listed companies worth approximately $2 trillion.

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Quick Facts:

• The ASX operates as Australia's primary stock exchange, combining market trading, clearinghouse operations, and trade and payment settlement.
• It represents roughly 80% of the Australian equity market value through its flagship ASX 200 index.
• 2,000+ companies and 300+ ETFs are listed on the exchange, spanning from mining giants to tech innovators.

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How does the ASX work?

The ASX combines three critical functions in one system.

As a market operator, it provides the electronic platform where buyers and sellers meet. Trading occurs through a sophisticated computer system that matches orders in milliseconds, replacing the traditional floor-based trading that once defined stock exchanges globally.

The exchange also acts as a clearinghouse, ensuring trades settle correctly. When you buy shares, the ASX guarantees the transaction completes, managing the transfer of securities and funds between parties.

Finally, it serves as a payments facilitator, processing the money flows that accompany each trade. This integrated approach reduces settlement risk and keeps the market running smoothly.

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What are ASX trading hours?

The ASX operates from 10:00am to 4:00pm Sydney time (AEST/AEDT) on business days, with a pre-open phase from 7:00am. 

Stocks open alphabetically in staggered intervals starting at 10:00am, followed by continuous trading until the closing auction at 4:00pm. 

The exchange observes Australian public holidays and adjusts for daylight saving time between October and April, which can affect coordination with international markets.

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Top ASX Indices

S&P/ASX 200

This is the exchange's flagship index. It tracks the 200 largest companies by market capitalisation and represents approximately 80% of Australia's equity market.

It serves as the primary benchmark for most investors and fund managers and is rebalanced quarterly to ensure it reflects the current market leaders.

All Ordinaries Index

Commonly called the All Ords, this index covers the top 500 companies on the ASX. 

It provides broader market exposure than the S&P/ASX 200, capturing roughly 80-90% of total market value. 

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The 11 ASX sectors

The ASX also breaks down into 11 sector-specific indices, allowing investors to track performance in areas like financials, materials, healthcare, and technology. 

These indices can help identify which parts of the Australian economy are strengthening or weakening.

1. Financials dominates as the largest sector, driven by Commonwealth Bank, NAB, Westpac, and ANZ. These banking giants provide lending, wealth management, and insurance services across Australia.
2. Materials ranks second, led by mining powerhouses BHP and Rio Tinto. This sector extracts and processes resources, including iron ore, coal, copper, and gold.
3. Consumer Discretionary includes retailers, media companies, and hospitality groups that benefit when household spending rises.
4. Industrials encompasses construction firms, airlines, and professional services businesses.
5. Healthcare features companies like CSL, a global biotech leader, and Cochlear, which produces hearing implants.
6. Real Estate features property developers and Real Estate Investment Trusts (REITs) that own and manage commercial and residential assets.
7. Communication Services includes telecommunications providers like Telstra alongside media and entertainment companies.
8. Energy tracks oil and gas producers (many renewable energy companies typically fall under utilities).
9. Consumer Staples covers essential goods providers like supermarkets and food producers.
10. Information Technology includes software developers and IT services firms.
11. Utilities covers electricity, gas, and water suppliers, including renewable energy.

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Top ASX companies

Three companies consistently lead the S&P/ASX 200 by market capitalisation.

Commonwealth Bank (Mkt cap: A$259 bln)

Commonwealth Bank holds the top position on the ASX as Australia's biggest lender. 

Founded in 1911 and fully privatised by 1996, CBA offers retail banking, business lending, wealth management, and insurance.

Its performance often signals the health of the domestic economy.

BHP Group (Mkt cap: A$241 bln)

BHP Group stands as the world's largest mining company. 

Its diversified portfolio spans iron ore, copper, coal, and nickel operations globally. 

It serves as a bellwether for Australian commodity markets.

CSL Limited (Mkt cap: A$182 bln)

CSL Limited leads the Australian healthcare sector as a global biotech firm. 

Established in 1916, CSL develops treatments for rare diseases and manufactures influenza vaccines. 

The company demonstrates Australian innovation competing on the world stage.

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ASX top 20 companies:

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The ASX's role in Australia's economy

The ASX serves as a vital mechanism for capital formation in Australia. It tends to provide price signals that reflect market expectations. 

When share prices rise, it suggests optimism about economic conditions. Falling markets may indicate concerns about future growth.

Australian companies raise funds through initial public offerings and follow-on share sales on the ASX, using proceeds to expand operations, fund research, or pay down debt.

Investors in these shares benefit from potential capital gains and dividend income. Many Australians build retirement savings through superannuation funds that invest heavily in ASX-listed companies.

Employment in financial services also depends partly on a healthy stock market. Brokers, analysts, fund managers, and supporting roles exist because of active capital markets.

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Key takeaways

The ASX functions as a market operator, clearinghouse, and payments facilitator, providing the infrastructure that enables capital formation and supports retirement savings for millions of Australians.

Its flagship index, the S&P/ASX 200, tracks the 200 largest companies and captures about 80% of market capitalisation, while the All Ordinaries index covers the top 500. 

Financials and Materials dominate the exchange, led by Commonwealth Bank, BHP, and CSL, reflecting Australia's strength in banking and resources.

You can trade the S&P/ASX 200 Index CFD and over 230 ASX Share CFDs on GO Markets.

US earnings season is where the market gets its cleanest burst of new information. For Australians, it usually lands while the country is asleep. This is not just “US company news”. It is the scoreboard for the Nasdaq, the S&P 500, and risk appetite more broadly, with spillover into SPI futures, the AUD, and sector mood at the ASX open.

What this guide covers

• The four-wave rhythm (why volatility often clusters around common predictable months)
• The order of play (banks → tech → retailers) and what each group tends to reveal
• Before market open (BMO) vs after market close (AMC)
• The few lines markets care about (surprise vs expectations, and the forward reset)
• How earnings information can flow through to Australia via futures, FX, and sector sentiment

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US earnings season basics

Earnings season is the 4 to 6-week window after each quarter when most US-listed companies report a new set of numbers and a new story.

Calendar rhythm and clustering

Earnings does not arrive as a smooth drip. It typically arrives in four recurring waves. Most US reporting clusters around January, April, July, and October. Each wave covers the prior quarter, which is why markets spend the lead-up period building expectations, then reprice quickly as numbers and guidance hit.

The sequence is familiar: banks open, tech dominates the middle, retailers close. That order matters because each group updates a different part of the macro story. If you only track one set of reports, make it the Magnificent 7 — here’s the Mag 7 earnings calendar for 2026 (Aussie-friendly timing)

Time zones: the two windows

For Australians, the key is when the first move hits.

• AMC (after market close): often Sydney and Melbourne morning, sometimes near the ASX open
• BMO (before market open): often late night, with the initial reaction while Australia sleeps

Daylight saving shifts timings, but the pattern is usually consistent: two windows, often with different liquidity conditions.

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How the market digests an earnings event

Earnings is rarely a single reaction. It is a sequence.

1. Headline release (EPS and revenue versus consensus)
2. Immediate price discovery (often in after-hours or pre-market liquidity)
3. Call and Q&A (guidance, margins, and demand tone get tested)
4. Next US cash session (follow-through, reversals, broader positioning)
5. Australia opens into the aftershock (futures, FX, and sector mood already set)

Translation: volatility often clusters around reporting windows because the calendar can concentrate new information and repricing.

1. Expectations: the scoreboard the market uses

Markets do not price “good” or “bad” in isolation. They price the gap versus expectations, then adjust the forward story. That is why the same quarter can look strong on paper and still disappoint if it lands below what the market had already baked in.

Most headlines boil down to three checks. First, actual results versus consensus. Second, actual results versus what the company previously guided. Third, quality and durability. That tends to show up in margins, the mix across segments, and whether cash flow backs up the earnings number.

2. Guidance: the forward reset

Guidance is where the narrative can change without the quarter changing. A company can deliver the past cleanly, then move the goalposts for what comes next. That forward reset is often what drives the bigger repricing.

In practice, guidance usually lands in a few buckets. Revenue or EPS outlook sets the top-line and earnings path. Margin outlook tells you how confident management is about costs and pricing. Capex language signals how heavy the investment cycle is likely to be. Capital return talk, including buybacks, is a read on balance sheet posture and priorities.

Translation: markets trade forward narratives. Guidance is the mechanism.

3. The call: where tone can add context

Prepared remarks are polished. The call is where the market stress-tests the story. The Q&A is where the edges show up, because that is where analysts push on the parts that matter and management has to answer in real time.

Listen for the tells. Demand language can shift from broad to patchy. Pricing can move from power to pressure. Margin confidence can sound steady or start to carry caveats. And the “we are not breaking that out” moments matter too. What management avoids can be as informative as what it highlights.

4. Holding through the print

Some traders choose to reduce exposure if they’re holding through results, because gaps can occur and stops may not execute at expected levels. A practical risk lens is to consider an adverse gap scenario and assess whether the position size sits within your risk tolerance. If the position only “works” at a size that would be hard to tolerate in a gap, that is useful information too.

5. Trading the headline versus the aftermath

It can help to be clear on what is being traded:

• Trading the print can be high variance
• Trading the trend after can be cleaner

If exposed overnight from Australia, having a plan before the market prints can reduce reactive decisions. “I will figure it out at the open” often becomes another way of saying “I will react”.

Bottom line: this is the week where boring risk management beats clever narratives.

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Mag 7: See what the market’s priced in ahead of earnings and what could trigger a repricing

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Glossary (quick definitions)

• EPS: earnings per share
• Consensus: the market’s compiled estimate set
• Guidance: management’s forward-looking outlook ranges/comments
• Margins: profitability as a percentage of revenue
• Capex: capital expenditure (investment spend)
• BMO/AMC: before market open / after market close (US reporting labels)
• After-hours / pre-market: trading sessions outside regular US cash hours
• Correlation: how tightly assets move together (often rises in macro or de-risking periods)

As geopolitical narratives continue to simmer, US and European markets move into the rest of the week with three dominant drivers: US inflation data, the start of US earnings season, and an unusual Fed-independence headline risk after the DOJ subpoenaed the Federal Reserve. 

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Quick facts:

• US consumer price index (CPI) and producer price index (PPI) are the key macro releases and are likely to impact the US dollar (USD) and other asset classes if there is a significant move from expectations.
• JPMorgan reports Tuesday, with other major US banks through the week, as the Q4 reporting season gets underway.
• Reporting around DOJ action involving the Fed, and Chair Powell’s prior testimony, created early market volatility on Monday, with markets sensitive to anything that may be perceived as undermining Fed independence.
• President Trump announced this morning that any country doing business with Iran will face a 25% tariff on all business with the US, effective immediately.
• Europe’s production and growth updates, including Eurozone industrial production and UK monthly GDP and trade data, are later in the week.

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United States: CPI, Fed path, DOJ and Fed headline risk, and banks leading earnings

What to watch:

The US is carrying the highest event density in global data releases this week. CPI and PPI will both be watched for moves away from expectations.

Any meaningful surprise can shift Fed policy expectations. Markets are currently pricing a lower likelihood of a March rate cut (under 30%) than this time last week, based on fed funds futures probabilities tracked by CME FedWatch.

Bank earnings may set the tone for the reporting season as a whole. Forward guidance is likely to be as important as Q4 performance, with valuations thought to be high after another record close in the S&P 500 overnight.‍

Key releases and events:

• Tue 13 Jan (Wed am AEDT): CPI (Dec) (high sensitivity)
• Tue 13 Jan (Wed am AEDT): JPMorgan earnings before market open (high sensitivity for banks and risk tone)
• Wed to Thu: additional large-bank earnings cluster (high sensitivity for financials sentiment)
• Wed 14 Jan (Thu am AEDT): US PPI
• Thu 15 Jan (Fri am AEDT): US weekly unemployment
• Throughout the week: Fed member speeches

How markets may respond:

S&P 500 and US risk tone: US indices are near record levels. The S&P 500 closed at 6,977.27 on Monday. Hotter-than-expected inflation can pressure growth and small-cap equities in particular, and weigh on the market broadly. Softer inflation can support further risk-on behaviour.

USD: Inflation data is the obvious driver this week for the greenback, but any continuation of DOJ and Fed developments, or geopolitical escalation, may introduce additional USD influences.

With the USD testing the highest levels seen in a month, followed by some light selling yesterday, some volatility looks likely. Gold has also been bid as a potential safety trade and hit fresh highs in the latest session, suggesting demand for defensive exposure remains present.

Earnings (banks): In a market already priced near highs, results can still create volatility if they are not accompanied by supportive earnings per share (EPS), revenue and forward guidance. Financials will likely see the first-order response, but any early pattern in results and guidance can influence the broader market beyond the first few days.

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UK and Eurozone: growth data influence amid continuing equity strength

What to watch:

In a week where Europe may be driven primarily by events in the US and geopolitical narrative, the Eurozone industrial production print is still a noteworthy local release.

In the UK, monthly GDP and trade numbers on Thursday may influence both the FTSE 100 and the pound, particularly if there is any meaningful surprise.

Key releases and events:

Eurozone

• Wed 14 Jan: Eurozone industrial production (Nov 2025) (medium sensitivity for cyclical sectors)

UK

• Thu 15 Jan: GDP monthly estimate (Nov 2025) (high sensitivity for GBP and UK rate expectations)
• Thu 15 Jan: UK trade (Nov 2025) (low to medium sensitivity)

How markets may respond:

EUR spillover from the US: Despite light Eurozone data, the US response is likely to matter most this week, with the US dollar index a major driver of broader G10 FX direction.

DAX (DE40): Germany’s index is also trading at or near record levels and closed at 25,405 on Monday. (2) If the index is extended, it may react more to global rate moves and shifts in perceived risk.

FTSE 100 and GBP: The FTSE hit a new high in the overnight session, driven particularly by materials and mining stocks. (5) Any GDP surprise can re-price GBP and UK equities quickly in an environment where growth concerns persist.

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US and Europe calendar summary (AEDT)

• Wed 14 Jan: US CPI, US bank earnings kick-off (notably JPMorgan)
• Wed 14 Jan: Eurozone industrial production (Nov 2025)
• Thu 15 Jan: UK monthly GDP (Nov 2025) and UK trade (Nov 2025), US bank earnings continue
• Fri 16 Jan: US weekly unemployment, US bank earnings continue

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Bottom line

• If US CPI surprises higher, markets may lean toward higher-for-longer interest rate pricing, which can pressure equity multiples and lift rates volatility.
• If bank earnings are solid but guidance is cautious, equities can still see two-way swings given index levels near records and high valuations.
• If DOJ and Fed headlines escalate, they may override normal data reactions to some degree. That could increase demand for perceived safe havens such as gold and lift FX volatility.
• For Europe, Eurozone production (Wed) and UK GDP and trade (Thu) are the key local data. The region is still likely to trade primarily off US outcomes and broader risk sentiment.

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