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Table of Contents
Australian Share Market Update: 6 May 2025
ASX 200 Futures: Down 21 points (-0.25%) at 8:30 am AEST.
Key Takeaways
- The S&P 500 ended its nine-day winning streak during a quiet trading session with low volumes.
- Q1 earnings reports have thus far exceeded expectations; however, Bank of America cautions about potential weakness in Q2.
- A number of firms, such as NHF, APA, and Austal, have reiterated their earnings forecasts for FY25.
Overnight Market Recap
As of 6 May 2025, 8:20 am AEST
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,650 | -0.64% |
| Dow Jones | 41,219 | -0.24% |
| NASDAQ Composite | 17,844 | -0.74% |
| Russell 2000 | 2,004 | -0.82% |
| Canada | 24,954 | -0.31% |
| China | 3,279 | -0.23% |
| Germany | 23,345 | +1.12% |
| Hong Kong | 22,505 | +1.74% |
| India | 80,797 | +0.37% |
| Japan | 36,831 | +1.04% |
| UK | 8,596 | +1.17% |
Commodities Overview (USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | $3,322.30 | -0.35% |
| Copper | $4.674 | +0.48% |
| WTI Oil | $57.13 | -1.99% |
Currency & Cryptocurrency
| Currency | Value | % Change |
|---|---|---|
| AUD/USD | 0.6464 | +0.19% |
| Bitcoin (USD) | $94,802 | -0.59% |
| Ethereum (AUD) | $2,813 | -0.42% |
US Market Highlights
- Major US indices fell but managed to recover slightly from their lowest points.
- The S&P 500’s break from a nine-day win streak was notable, having occurred only 14 times since 1970.
Investment Insights:
- Typically, past occurrences of a nine-day streak were followed by average returns of +0.7% (1 month) and +3.6% (12 months), as reported by Goldman Sachs.
- A defensive rotation was evident, with less volatile sectors finishing close to flat.
Trade Updates:
- There’s speculation of reduced tariffs on China, as discussed by Trump, with potential announcements expected soon.
- Notable trading activity saw the Taiwanese dollar surge to a 30-year high due to regional exporters seeking to hedge.
Earnings Insights
- Blended growth for S&P 500 reporters stands at 12.8%, above expectations of 7.2%.
- Many companies expect resilience despite a growing mention—24%—of ‘recession’ in earnings calls, compared to only 2% last quarter.
Stock Movements
- Berkshire Hathaway: Shares slipped 5% following Buffett’s announcement regarding his retirement as CEO.
- Shell: Exploring a potential takeover of BP amidst declining valuations.
- Media Companies: Stocks like Netflix and Amazon dipped after the announcement of a 100% tariff on foreign-produced films.
ASX Overview
Key ASX Movements:
- Civmec received contract awards worth $285 million.
- HMC Capital revised its FY25 operating EPS forecast down to 66 cents, while maintaining a dividend of 12 cents per share.
- NextDC saw a significant increase in contracted utilization and raised its capital expenditure forecast to $1.6 billion.
- Vicinity Centres upgraded its FY25 earnings guidance following a rise in retail sales.
Look Ahead:
- Gold prices surged 2.8%, benefiting mining stocks post a recent pullback.
- No dividends or major earnings announcements are scheduled for today.
Economic Calendar
Key Event Today:
- 11:30 am: Australia Building Permits (March)
Please note that these market moves are fluid and subject to change based on ongoing economic and corporate developments.
