ASX Market Update – Friday, May 1
This is our live coverage of the Australian Securities Exchange (ASX), highlighting key corporate performance and market updates. We’ll provide continual updates throughout the day, concluding around 2:00 PM AEST.
ANZ Reports Strong H1 Cash Profit
[9:04 AM] ANZ Bank (ASX: ANZ) exceeded expectations for its cash profit, primarily due to effective cost management and improved returns. The interim dividend remained unchanged, but franking credits increased. The bank has outlined ambitious return on equity (ROTE) targets for FY28 and FY30.
- Cash profit (excluding items) rose by 14% to $3.78 billion, surpassing estimates by 2%.
- The net interest margin slightly decreased by 1 basis point to 1.53%.
- Capital ratios remained strong with a CET1 ratio of 12.39%.
- Customer deposits increased by 3% to $771 billion, while net loans dipped 1% to $822 billion.
- ANZ expects ROTE to approach 12% by FY28, aiming for 13% by FY30.
ResMed Beats Q3 Expectations Amid CFO Transition
[8:55 AM] ResMed (ASX: RMD) reported robust earnings with a substantial rise in revenue and gross margin, alongside announcing the retirement of CFO Brett Sandercock.
- Revenue climbed 11% to $1.43 billion, slightly surpassing forecasts.
- Adjusted EPS was $2.88, exceeding estimates by 3%.
- Operating cash flow hit $554 million, with a focus on shareholder returns.
Mining ETFs Surge Amid New Investment Trends
[8:48 AM] Mining exchange-traded funds (ETFs) have seen a dramatic increase in assets, more than doubling from last year, as investors shift focus to hard assets favourable for sectors such as AI and electrification.
- Mining ETF assets under management rose by 136% to $87.4 billion compared to $37 billion last year.
- Major inflows were recorded in Q1, signalling strong investor confidence.
ASX 200 Poised for Recovery
[8:46 AM] The ASX 200 futures indicate a potential 1.46% increase today, aimed at breaking an eight-day losing streak—the longest since 1994. Historical data shows a typical recovery average of 1.1% following such downturns.
Geopolitical Tensions Escalate in the Middle East
[8:42 AM] Iran has issued stark warnings regarding U.S. military activity in the Strait of Hormuz, indicating potential retaliation if provoked.
- Iran’s Revolutionary Guards threatened significant responses to any U.S. attacks.
- Diplomacy remains strained as the U.S. seeks collaboration from allied nations.
European Central Bank Keeps Rates Steady Amid Uncertainty
[8:41 AM] The ECB has maintained its deposit rate at 2% while acknowledging increased inflation and descent risks due to ongoing geopolitical tensions.
U.S. Economic Landscape Diverges
[8:40 AM] Recent U.S. data reveals a complex picture, with rising inflation linked to energy prices driven by the Iran conflict, but GDP growth falling short of expectations.
- Core personal consumption expenditures (PCE) rose in line with expectations, yet inflationary pressures persist.
- Jobless claims reached generational lows, contributing to labour market strength.
Caterpillar Sees Strong Q1 Growth
[8:37 AM] Caterpillar’s (NYSE: CAT) first-quarter results exceeded forecasts, buoyed by booming demand for energy equipment.
- Revenue stood at $17.4 billion, outpacing estimates by 6%.
- A substantial backlog indicates robust future demand.
Eli Lilly Reports Exceptional Growth
[8:35 AM] Eli Lilly (NYSE: LLY) experienced strong revenue growth driven by its GLP-1 medication, prompting an upward revision in its fiscal guidance.
- Revenue surged by 56% to $19.8 billion against expectations.
Apple Rides High with Strong Q2 Earnings
[8:33 AM] Apple (NASDAQ: AAPL) recorded impressive earnings in Q2, driven by record iPhone sales and significant growth in Greater China.
- Revenue increased by 16.6%, reflecting continued demand for its flagship products.
Marking a Strong Month for U.S. Equities
[8:30 AM] The U.S. markets concluded their best month since November 2020, with major indices achieving record highs.
- The S&P 500 rose 1.02%, with notable performances from companies like Caterpillar and Eli Lilly.
Summary
The ASX is on the brink of reversing its recent downward trend, buoyed by strong earnings reports from key players such as ANZ and ResMed. Meanwhile, global tensions and economic indicators loom as significant influencing factors in market sentiments. Keep an eye on how these developments unfold throughout the day.
