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ASX Morning Wrap – 1 May 2025
Market Overview
At 8:30 am AEST, ASX 200 futures are showing a decline of 28 points (-0.34%).
Key Highlights:
- The S&P 500 closed with a last-minute rally, achieving its seventh consecutive gain, marking one of the most significant winning streaks recorded.
- The US GDP unexpectedly declined by 0.3%, largely driven by surging imports, which pose a potential headwind for growth.
- Oil prices have dipped below US$60 per barrel as Saudi Arabia expresses a readiness to manage lower price levels.
Overnight Market Summary (Thu 1 May 2025)
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,569 | +0.15% |
| Dow Jones | 40,669 | +0.35% |
| NASDAQ Comp | 17,446 | -0.09% |
| Russell 2000 | 1,964 | -0.63% |
Country Indices
- Canada: 24,842 (-0.13%)
- China: 3,279 (-0.23%)
- Germany: 22,497 (+0.32%)
- Hong Kong: 22,119 (+0.51%)
- India: 80,242 (-0.06%)
- Japan: 36,045 (+0.57%)
- United Kingdom: 8,495 (+0.37%)
Commodities
- Gold: $3,276.7 (-1.21%)
- Copper: $4.5631 (-4.83%)
- WTI Oil: $58.21 (-3.66%)
Currencies
- AUD/USD: 0.6404 (+0.30%)
Cryptocurrency
- Bitcoin (USD): $94,657 (+0.07%)
- Ethereum (AUD): $2,807 (+0.11%)
US Market Performance
S&P 500 Dynamics
- The S&P 500’s notable rally occurred just before the market closed, marking its seventh consecutive gain.
- Despite the positive performance, US GDP figures revealed a contraction, signalling underlying economic challenges and potential stagflation concerns. Nearly 100 basis points of rate cuts are being anticipated before year-end.
Sector Performance
- Health Care: +0.89%
- Industrials: +0.80%
- Consumer Staples: +0.71%
- Consumer Discretionary: -1.11%
- Energy: -2.61%
Corporate Updates
- Meta Platforms: Q1 revenue rose 16% to $42.3 billion, exceeding estimates. The company credits AI advancements for improved ad targeting.
- Microsoft: Achieved a 13% increase in revenue, totalling $70 billion, buoyed by robust growth in Azure and key contributions from AI.
- Visa: Reported an EPS of $2.76, beating estimates amid strong consumer spending.
Stocks of Interest
- Starbucks: Same-store sales fell 1% in Q1, while revenues missed market expectations.
- Volkswagen: Experienced a significant 37% decline in first-quarter profits due to tariff impacts.
Central Bank and Economic Insights
- US Q1 GDP contracted by 0.3%, the lowest since the first quarter of 2022, driven mainly by increased imports as businesses stockpile before tariff implementations.
- Eurozone Q1 GDP unexpectedly rose by 0.4%, attributed to stockpiling, contrasting the declining trend seen in the US.
ASX Today: Key Activities and Monitoring
- Aeris Resources: Planning a ~$70 million equity raise aimed at boosting working capital and refinancing debt.
- Woolworths: Reported Q3 sales slightly below market expectations at $17.31 billion.
Focus Areas for Today
- Ongoing quarterly reports may highlight companies facing capital constraints as the quarter draws to a close.
- Positive momentum is anticipated in the tech sector following strong earnings from US competitors.
- Resource sectors are under pressure, particularly with recent declines in oil prices.
Broker Recommendations
- Coronado Global: Downgraded to Hold from Buy, target revised to $0.23.
Key Upcoming Events
- Australia Balance of Trade: Expected release at 11:30 am AEST.
- Japan Interest Rate Decision: Anticipated to remain unchanged at 0.50%.
- US ISM Manufacturing PMI: Scheduled for midnight AEST.
This summary encapsulates the overnight developments affecting the markets, corporate performance highlights, and key economic indicators, setting the stage for a day of trading on the ASX.
