43
Table of Contents
Monday Morning Market Wrap-Up
ASX 200 futures have opened 16 points higher (+0.19%) as of 8:30 AM AEST.
Highlights:
- Major US indices experienced slight declines on Friday, influenced by concerns that positive developments may already be factored into prices alongside diminishing expectations for further interest rate cuts.
- Equity futures surged on Monday following news of "substantial progress" in US-China trade discussions that took place over the weekend in Switzerland.
- This progress in talks resulted in a nearly 1.5% drop in gold prices, along with modest gains in oil and copper.
Overnight Summary (As of May 12, 2025)
| Key US Indices Performance: | Index | Value | % Change |
|---|---|---|---|
| S&P 500 | 5,660 | -0.07% | |
| Dow Jones | 41,249 | -0.29% | |
| NASDAQ Comp | 17,929 | 0.00% | |
| Russell 2000 | 2,023 | -0.16% |
| Country Indices Performance: | Country | Value | % Change |
|---|---|---|---|
| Canada | 25,358 | +0.41% | |
| China | 3,342 | -0.30% | |
| Germany | 23,499 | +0.63% | |
| Hong Kong | 22,868 | +0.40% | |
| India | 79,454 | -1.10% | |
| Japan | 37,503 | +1.56% | |
| UK | 8,555 | +0.27% |
| Commodity Prices: | Commodity | Value | % Change |
|---|---|---|---|
| Gold | 3,344.0 | +0.59% | |
| Copper | 4.653 | +1.01% | |
| WTI Oil | 61.02 | +1.85% |
Currency Rates:
- AUD/USD: 0.6422 (+0.31%)
| Cryptocurrency Prices: | Cryptocurrency | Value (AUD) | % Change |
|---|---|---|---|
| Bitcoin | 103,934 | +0.31% | |
| Ethereum | 3,904 | -0.75% |
US Market Overview
- The major US indices concluded the session with marginal reductions, linked to a relatively bound trading pattern.
- The S&P 500 and NASDAQ both closed lower for the week following two weeks of gains.
- Market concerns arose that much of the trade and earnings optimism had already been integrated into stock prices, while the S&P 500 trades at a 21x forward earnings ratio.
- In the broader economic impact, sidelined cash positions continue to rise despite recent stock rebounds.
Key Corporate Highlights
- Saudi Aramco reported a decline in Q1 profits, leading to a $10bn cut in dividends.
- Nvidia is adapting its chip strategy to maintain its position in China amidst stringent export controls.
- TSMC saw sales jump dramatically in April as companies sought to stockpile before impending tariffs.
Financial Sector Insights
- The first-quarter earnings for the S&P 500 rose by 13.4%, surpassing expected growth of 7.2%.
- Approximately 78% of companies reporting their earnings exceeded consensus expectations, slightly higher than historical averages.
Central Banking Updates
- Fed Governor Barr indicated that US tariffs could potentially lead to increased inflation and unemployment later this year.
- Former President Trump has renewed criticism of Fed Chair Jerome Powell regarding interest rate policies.
Trade Relations Update
- Following recent dialogues, Trump announced that America and China have achieved a "total reset" in their negotiations concerning tariffs.
- Key talks are underway regarding the potential removal of China’s export restrictions on rare earth materials.
Economic Indicators
- China’s export figures rose by 8.1% in April, despite a notable drop in shipments to the US, revealing increased demand from alternative markets.
Looking Ahead: What to Watch
- Following positive sentiments from US-China trade talks, market futures opened significantly higher, signalling potential bullish trends in the morning trades.
- Watch for shifts in sectors previously benefiting from tariffs as negotiations develop further.
Broker Actions
- Catalyst Metals has been upgraded to Buy with a price target increased to $7.05.
- Goodman Group has also been upgraded to Buy, with the target lowered slightly to $36.
Key Dividend Announcements
- Today’s Ex-Dividend Stocks: Future Generation Global (FGG) – $0.037, Naos Ex-50 (NAC) – $0.015, and National Australia Bank Ltd (NAB) – $0.85.
No major economic releases are expected today.
This wrap summarizes the worldwide market dynamics, key corporate movements, and economic indicators impacting investors as they navigate the day ahead on the ASX and beyond.
