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Table of Contents
ASX Morning Update – 7 May 2025
Overview
ASX 200 futures are down 31 points (-0.38%) as of 8:30 AM AEST, reflecting a continuation of global market fluctuations. Here’s a quick summary of the main trends impacting the markets:
- US Market Performance: Major US indices have retreated following a nine-day winning streak.
- Sector Performance: Defensive sectors are outperforming amidst macroeconomic uncertainties, stalled trade negotiations, and cautious corporate guidance.
- Earnings Reports: Positive earnings updates highlight performance from companies like AUB, JB Hi-Fi, and Temple & Webster.
Overnight Market Summary
Date: 7 May 2025
Major Indices
| Index | Value | Change (%) |
|---|---|---|
| S&P 500 | 5,607 | -0.77 |
| Dow Jones | 40,829 | -0.95 |
| NASDAQ Comp | 17,690 | -0.87 |
| Russell 2000 | 1,983 | -1.05 |
Country Indices
| Country | Value | Change (%) |
|---|---|---|
| Canada | 24,975 | +0.08 |
| China | 3,316 | +1.13 |
| Germany | 23,250 | -0.41 |
| Hong Kong | 22,663 | +0.70 |
| India | 80,641 | -0.19 |
| Japan | 36,831 | +1.04 |
| United Kingdom | 8,597 | +0.01 |
Commodities (USD)
| Commodity | Value | Change (%) |
|---|---|---|
| Gold | 3,405.11 | +2.12 |
| Copper | 4.7536 | +2.26 |
| WTI Oil | 59.09 | +3.43 |
Currency
| Pair | Value | Change (%) |
|---|---|---|
| AUD/USD | 0.6492 | +0.43 |
Cryptocurrency
| Asset | Value | Change (%) |
|---|---|---|
| Bitcoin (USD) | 95,442 | +0.71 |
| Ethereum (AUD) | 2,754 | -1.53 |
Miscellaneous
| Item | Value | Change (%) |
|---|---|---|
| US 10 Yr T-bond | 4.308 | -0.81 |
| VIX | 24.76 | +4.74 |
US Sector Performance
The US market saw a mixed performance across sectors, with utilities and energy sectors showing resilience:
| Sector | Change (%) |
|---|---|
| Utilities | +1.23 |
| Energy | +0.10 |
| Consumer Staples | -0.17 |
| Communication Services | -0.50 |
| Financials | -0.52 |
| Information Technology | -0.63 |
| Materials | -0.66 |
| Health Care | -2.76 |
Notable Market Developments
- US Markets: The major US benchmarks closed lower, with a defensive tilt evident as utilities, staples, and telecommunications outperformed. Market concerns focus on trade negotiations and earnings expectations, leading to some companies retracting their full-year guidance.
- Corporate Actions:
- Palantir raised its full-year guidance following robust Q1 results, yet shares fell.
- Ford and Mattel withdrew their guidance regarding earnings, citing tariff impacts and supply chain disruptions.
- DoorDash’s acquisition of Deliveroo for £2.9 billion highlights continued M&A activity despite market volatility.
Market Sentiments
- Analysts suggest the current market recovery is typical of bear market rallies, characterised by sharp spikes and erratic swings. Goldman Sachs underscores this sentiment.
- Global M&A activity has dropped to its lowest since 2005 amid ongoing tariff uncertainties.
ASX Market Outlook
Companies reporting today are expected to influence market sentiment:
- AUB Group indicated strong profit expectations.
- JB Hi-Fi reported positive sales growth in Q3.
- Auckland International Airport reaffirmed its profit guidance.
- NAB reflected stable cash earnings with a dividend declaration.
- Bega Cheese revealed operational consolidations aimed at efficiency improvement.
What to Watch Today
- Gold Prices: After a significant overnight increase, gold prices will influence mining stocks.
- Defensive Sectors: Monitor continued performance from defensive segments as uncertainty persists in broader markets.
This summary encapsulates major market developments and expectations for the ASX and other global indices, aiding investors in strategic decision-making.
