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Table of Contents
Morning Wrap-Up: ASX and Global Market Overview
ASX 200 Futures: Up 52 points (+0.62%) as of 8:30 am AEST.
Key Highlights:
- Major US indices saw a broader decline in a quiet trading session.
- Home Depot’s earnings report was mixed; reaffirmed guidance assuaged tariff and consumer worries.
- The market is now anticipating a ~66% chance of three rate cuts from the Reserve Bank of Australia (RBA) before year-end.
Overnight Market Summary
Date: Wednesday, 21 May 2025, 8:24 am (AEST)
Major US Indices:
| Index | Value | Change |
|---|---|---|
| S&P 500 | 5,940 | -0.39% |
| Dow Jones | 42,677 | -0.27% |
| NASDAQ Composite | 19,143 | -0.38% |
| Russell 2000 | 2,106 | +0.05% |
Global Indices:
| Country | Value | Change |
|---|---|---|
| Canada | 26,056 | +0.32% |
| China | 3,380 | +0.38% |
| Germany | 24,036 | +0.42% |
| Hong Kong | 23,681 | +1.49% |
| India | 81,186 | -1.06% |
| Japan | 37,529 | +0.08% |
| United Kingdom | 8,781 | +0.94% |
Commodities (USD):
| Commodity | Price | Change |
|---|---|---|
| Gold | 3,297.34 | +2.33% |
| Copper | 4.6462 | +0.45% |
| WTI Oil | 62.56 | -0.21% |
Currency Rate:
| Currency Pair | Value | Change |
|---|---|---|
| AUD/USD | 0.642 | -0.57% |
Cryptocurrency Prices:
| Cryptocurrency | Price | Change |
|---|---|---|
| Bitcoin (USD) | 106,604 | +1.12% |
| Ethereum (AUD) | 3,908 | -0.08% |
Sector Performance in the US
| Sector | Change |
|---|---|
| Utilities | +0.29% |
| Health Care | +0.27% |
| Consumer Staples | +0.24% |
| Financials | -0.55% |
| Real Estate | -0.55% |
| Consumer Discretionary | -0.59% |
| Energy | -0.99% |
Market Insights
- US Stock Market: Most major US benchmarks closed lower amid limited market activity and no significant news. Mixed results from Home Depot were not enough to drive the market upward.
- Investor Sentiment: Concerns arising from a downgrade by Moody’s were mitigated by strong corporate earnings.
Notable Corporate Updates:
- Home Depot: While revenue exceeded expectations, earnings per share (EPS) fell short. The company reaffirmed its guidance for FY26.
- Google: Launched its new premium AI tier priced at $249.99 per month.
- General Motors: Announced plans to halt vehicle exports to China.
Central Bank Actions:
- Federal Reserve: Officials emphasise a patient approach, with some predicting a pause in rate hikes until September.
- RBA: Recently cut rates by 25 basis points to the lowest level in two years at 3.85%.
- China: Key banks reduced deposit rates by up to 25 basis points, affecting substantial domestic deposits.
Tariff Developments:
- No significant imports surge is anticipated post-truce in trade tensions between the US and China.
- Upcoming G7 meetings are not expected to yield immediate trade deals unless they align with US priorities.
Economic Indicators:
- Canadian inflation decreased to 1.7% in April, slightly above market predictions but still indicative of economic trends.
What’s Ahead for Today?
- Market Watch: Anticipate movements in gold prices and Australian bond yields based on recent economic trends.
- Key ASX Updates:
- Adriatic Metals is engaged in takeover talks with Dundee Precious Metals.
- Catapult reported better-than-expected results, while James Hardie’s revenue slightly declined but stayed within consensus estimates.
Key Economic Releases (AEST):
- 9:50 am: Japan’s Balance of Trade (April)
- 4:00 pm: UK Inflation Data (April)
This compact overview provides insights into market movements, significant corporate actions, and economic indicators relevant to today’s trading environment.
