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ASX Morning Briefing – June 16, 2025
The ASX 200 futures indicate a slight downturn, with a decrease of 20 points (-0.23%) as of 8:30 am AEST.
Key Highlights:
- Market Reaction: US stock markets experienced significant declines over the weekend, primarily due to escalating tensions in the Israel-Iran conflict.
- Geopolitical Uncertainty: Officials from the US and Israel suggest the conflict may persist for "weeks, not days."
- Market Behaviours: Rising gold and oil prices suggest a flight to safety amongst investors amidst supply concerns.
Market Summary:
Date: Mon 16 June 2025
Major Indices Performance:
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,977 | -1.13% |
| Dow Jones | 42,198 | -1.79% |
| NASDAQ Comp | 19,407 | -1.30% |
| Russell 2000 | 2,101 | -1.85% |
Country Indices:
| Country | Value | % Change |
|---|---|---|
| Canada | 26,504 | -0.42% |
| China | 3,377 | -0.75% |
| Germany | 23,516 | -1.07% |
| India | 81,119 | -0.70% |
| Japan | 37,834 | -0.89% |
| UK | 8,851 | -0.39% |
Commodities (USD):
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,432.03 | +0.47% |
| Copper | 4.7542 | +0.30% |
| WTI Oil | 72.98 | +7.26% |
Currency Exchange:
| Currency Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6487 | -0.69% |
Cryptocurrency:
| Crypto | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 105,115 | -0.39% |
| Ethereum (AUD) | 3,898 | -0.10% |
US Sector Overview:
Date: Mon 16 June 2025
| Sector | % Change |
|---|---|
| Energy | +1.72% |
| Health Care | -0.54% |
| Utilities | -0.62% |
| Consumer Discretionary | -0.74% |
| Financials | -2.06% |
Overnight Market Insights:
- Major US indices faced sharp declines, attributed to geopolitical tensions stemming from Iran’s retaliatory missile strikes against Israel.
- Oil prices have been volatile, with Brent crude increasing by 5.8% during the session.
- Significant outflows from US equity funds indicate rising investor caution, with corporate insiders reportedly selling shares at a pace not seen since November.
Key Developments:
- Nvidia announced it would exclude China from its earnings forecast.
- Apple reported a 15% increase in iPhone sales, driven largely by demand from China.
- Amazon and Walmart are considering issuing their own stablecoins.
- Meta secured a $15 billion investment for a stake in Scale AI.
Geopolitical Developments:
- Continued hostilities between Israel and Iran raise fears of a broader conflict, with the potential for increased oil price volatility.
- Former President Trump has suggested potential diplomatic resolutions.
ASX Highlights:
- Adriatic Metals to be acquired by Dundee Precious Metals, valued at $5.56 per share.
- Bubs Australia is submitting new infant formula to the US FDA.
- Black Cat Syndicate reported retaining 4,500 oz of gold, highlighting concerns over converting gold into cash.
What to Monitor Today:
Given the recent volatile events in the Middle East, continued monitoring of oil and gold prices is crucial. Market reactions may lead to further fluctuations in the equities market.
Broker Updates:
- Domino’s Pizza has been upgraded from Underweight to Neutral, with a revised target price of $22.90.
Key Dates & Economic Calendar:
- June 16: Whitefield Income (WHI) – Dividend $0.006
- June 18: Aft Pharmaceuticals (AFP) – Dividend $0.011
- Economic Data (AEST): China House Price Index, Industrial Production, Retail Sales due today, with anticipation of stable fixed-asset investment.
Through multiple geopolitical and economic pressures, the focus remains on market adjustments as Australia’s ASX responds to global influences.
