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ASX 200 futures have risen by 51 points (+0.60%) as of 8:30 am AEST, indicating a positive start for Australian markets.
Key Highlights:
- Major US indices rebounded sharply after the Memorial Day holiday, primarily influenced by President Trump’s delay in implementing EU tariffs and declining bond yields.
- Bond yields softened as Japanese officials contemplated reducing debt issuance after recent market fluctuations.
- Both Fisher & Paykel and Webjet Travel surpassed their FY25 earnings expectations.
Overnight Market Summary (28 May 2025):
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US Indices:
- S&P 500: 5,922 (+2.05%)
- Dow Jones: 42,344 (+1.78%)
- NASDAQ Comp: 19,199 (+2.47%)
- Russell 2000: 2,090 (+2.48%)
- Country Indices:
- Canada: 26,269 (+0.75%)
- China: 3,341 (-0.18%)
- Germany: 24,226 (+0.83%)
- Hong Kong: 23,382 (+0.43%)
- India: 81,552 (-0.76%)
- Japan: 37,724 (+0.51%)
- United Kingdom: 8,778 (+0.69%)
Commodities and Currency Update:
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Commodities (in USD):
- Gold: $3,300.40 (0.00%)
- Copper: $4.74 (+0.56%)
- WTI Oil: $60.89 (-1.04%)
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Currency:
- AUD/USD: 0.6445 (-0.66%)
- Cryptocurrency:
- Bitcoin: $109,164 (-0.28%)
- Ethereum: $4,139 (+4.12%)
US Sector Performance:
- Consumer Discretionary: +3.04%
- Information Technology: +2.55%
- Communication Services: +2.14%
- Industrials: +1.79%
- Financials: +1.79%
- Materials: +1.67%
The broad market in the US emerged positively with the S&P 500 recovering much of last week’s 2.6% decline, supported by the delayed EU tariff deadline and Japan’s potential bond issuance cut.
Stocks to Watch:
- Nvidia could positively influence the market ahead of its earnings announcement, as investors have approximately $7 trillion in cash waiting to be deployed.
- Tesla recently reported a significant drop in its European sales by 49% in April.
- KFC’s parent company, Yum Brands, plans to invest £1.49 billion in the UK and Ireland, which is expected to create over 7,000 jobs.
- Trump Media aims to raise $3 billion through equity and convertible debt for cryptocurrency investments.
Central Bank Insights:
- Minneapolis Fed’s Kashkari indicated that current uncertainties in US trade and immigration could affect future Federal Reserve rate cuts.
- The Reserve Bank of New Zealand is anticipated to reduce rates by an additional 25 basis points.
Tariff Insights:
- Mexico is preparing for a review of the USMCA starting in September.
- The EU intends to fast-track trade discussions with the US following Trump’s extension of tariff deadlines.
Economic Indicators:
- China’s industrial profits rose by 3% in April due to government initiatives and demand for manufactured goods.
- US consumer confidence surged to 98 in May, marking a significant increase due to reduced trade tensions.
ASX Expected Movers (28 May):
- 4DS is responding to a query from ASX regarding a recent surge of 71% in its share price.
- Fisher & Paykel’s FY25 NPAT was reported at NZ$377.2 million, exceeding guidance and consensus.
- Goodman Group reaffirms its FY25 guidance, reporting a 4.5% year-on-year increase in net property income.
Broker Recommendations:
- South32 downgraded to Neutral by Citi; price target adjusted to $3.40.
- Telstra upgraded to Outperform by Macquarie Group; target raised to $5.28.
Important Upcoming Events:
The market will be watching for further developments as the ASX 200 aims to maintain upward momentum and remains close to all-time highs. Additionally, economic indicators such as Australian inflation rates and FOMC minutes may impact market sentiments throughout the trading day.
