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Thursday Morning Market Wrap-up (15 May 2025)
Market Overview
The ASX 200 futures have dipped by 36 points, representing a 0.43% decrease as of 8:30 am AEST. In the United States, major stock indices presented mixed results; while technology and discretionary sectors exhibited strength, they were unable to offset weaknesses in the broader market. Gold prices are on a downward trend, decreasing by 7.5% in the last week alone. Earnings reports from Xero and Graincorp are anticipated as market participants gear up for another trading session.
Overnight Summary
As of 8:20 am AEST, the key US markets showcased varied performances:
| Name | Value | % Change |
|---|---|---|
| S&P 500 | 5,893 | +0.10% |
| Dow Jones | 42,051 | -0.21% |
| NASDAQ Composite | 19,147 | +0.72% |
| Russell 2000 | 2,084 | -0.88% |
Country Indices show a mixed bag, with Canada and China seeing positive gains while Germany’s market faced slight declines.
Commodities Performance:
- Gold: USD 3,188.30 (+0.34%)
- Copper: USD 4.6505 (+1.05%)
- WTI Oil: USD 63.15 (-0.82%)
Currency: The AUD/USD is trading at 0.643, reflecting a decrease of 0.57%.
Key Observations:
- The US markets traded in a narrow range with the S&P 500 maintaining a slight year-to-date gain.
- A negative market breadth was noted as the Equal-weight S&P 500 underperformed compared to the regular index.
- Gold has fallen below USD 3,200 for the first time since early April, increasing uncertainty in the commodities market.
- Significant inflows into US equity ETFs have been observed recently, as sentiment appears to shift amid easing trade tensions between the US and China.
Sector Performance
In the US:
- Communication Services +1.58%
- Information Technology +0.96%
- Consumer Discretionary +0.38%
- Notably, sectors like Health Care saw declines of -2.31%.
Key Market Developments:
- Boeing and GE Aerospace have inked a USD 96 billion deal to supply up to 210 aircraft to Qatar Airways.
- Roche indicated that Trump’s new drug pricing order could jeopardise its USD 50 billion investment plans in the US.
- After trending lower last week, Tesla plans to resume shipping parts from China for Cybercab and Semi truck production.
Central Bank Insights
The Bank of Japan has revived interest in possible rate hikes following a truce on US-China tariffs, while the ECB hints at another rate cut by summer.
Trade Dynamics
- Canada suspended almost all retaliatory tariffs on US goods.
- China halted sanctions against USC companies, which is a significant shift from previous positions.
Economic Indicators
- China’s growth forecasts have been revised upwards amidst easing stimulus expectations.
- Australia experienced a resurgence in wage growth to 3.4%, exceeding analysts’ predictions.
Australian Market Outlook
The ASX 200 is expected to end its six-day winning streak, influenced by the US market’s weaker performance. Market concerns are currently focused on yield pressures, particularly with the US 10-year treasury exceeding 4.5%.
Noteworthy Earnings Reports:
- Xero is set to report a net profit after tax of AUD 227.8 million with significant subscriber growth.
- Graincorp is another company to watch as it announces its financial results today.
Upcoming Events
Key corporate actions on the ASX today include:
- Earnings: Reports from Graincorp and Xero.
- AGMs: Including Ampol and Resolute Mining.
- Economic releases: Look out for Australia’s unemployment rate, UK GDP growth, and US PPI and retail sales numbers later today.
In conclusion, as the market gears up for an active trading day, investors are advised to monitor both domestic corporate performance and global economic indicators closely.
