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Live ASX Coverage – April 30: Market Insights and Earnings Updates
Welcome to our live coverage of the Australian Securities Exchange (ASX) for Thursday, April 30. Stay tuned for frequent updates, especially in pre-market hours, with a wrap-up around 2:00 pm AEST.
China Enforces Stricter Rare Earth Regulations Amid Earnings Surge
9:04 am
Chinese rare earth stocks have seen significant growth following impressive Q1 earnings, while the Chinese government targets illegal production within the sector ahead of a pivotal meeting between US and Chinese leadership.
- China Northern Rare Earth experienced a 10% increase, reporting a 119% rise in net income to 918 million yuan (US$134 million) in Q1. JL Mag also surged by 8%, posting a 20% profit increase to 193 million yuan. Analysts note resilient exports and more exposure to the robotics sector as positive factors.
- Strong earnings were largely influenced by soaring prices of NdPr, a key ingredient in magnets, which reached levels not seen since early 2022.
- In response, the Chinese government proposed new rules imposing fines of up to tenfold illicit gains for producers exceeding quotas by more than 30%.
Source: Bloomberg
US Futures Show Positive Momentum
9:00 am
Futures for the S&P 500 and Nasdaq have shifted into positive territory, rising 0.29% and 0.60% respectively, while Dow futures are down 0.31%.
Meta’s Q1 Success Overshadowed by Increased Capital Expenditure
8:59 am
Meta Platforms exceeded expectations on revenue and earnings for Q1 FY26. However, shares dropped 6.4% post-market due to raised capital expenditure forecasts driven by increased investment in AI infrastructure.
- Revenue rose 33% to $56.31 billion, beating estimates of $55.43 billion.
- Operating income grew 30% to $22.87 billion, surpassing predictions.
- Earnings per share (EPS) increased 62% to $10.44, buoyed by a one-off tax benefit.
- Q2 revenue guidance stands between $58.0-61.0 billion, while estimated expenses remain at $162-169 billion.
Alphabet Achieves Record Growth with Strong Google Cloud Performance
8:57 am
Alphabet delivered exceptional results in Q1 FY26, with substantial growth in Google Cloud, which surged 63%.
- Revenue rose 22% to $109.9 billion, exceeding forecasts.
- Operating income increased 30%, reaching $39.7 billion.
- EPS jumped 82% to $5.11.
- Google Cloud revenue hit $20.0 billion, and the company’s backlog almost doubled to over $460 billion.
Shares climbed 6.5% after hours on the positive news.
Microsoft Reports Strong Q3 Earnings Driven by Azure and AI Growth
8:55 am
Microsoft’s Q3 FY26 results surpassed expectations, particularly in cloud services, reflecting ongoing advancements in their AI initiatives.
- Revenue of $82.9 billion was an 18% increase year-on-year.
- EPS rose 23% to $4.27.
- Azure and Other Cloud Services grew 39%.
- The AI segment now boasts a $37 billion annual run rate, up significantly from the previous year.
Shares remained stable in after-hours trading.
Amazon’s Q1 Performance Exceeds Projections
8:50 am
Amazon reported strong Q1 figures, with AWS growth at its highest in 15 quarters.
- Revenue increased 17% to $181.5 billion.
- EPS reached $2.78, blowing past expectations.
- AWS revenue rose 28% to $37.6 billion.
- Q2 guidance forecasts between $194-199 billion, indicating significant growth.
Shares were up 3.6% in after-hours trading.
Oil Prices Surge Amid Ongoing Tensions with Iran
8:47 am
Brent crude oil prices climbed to US$112 a barrel as geopolitical tensions intensify, with no imminent resolution to the Iranian nuclear talks.
- Prices rose 7.6% following confirmation of continued blockades in the Strait of Hormuz.
- Tough negotiations have stymied progress in talks regarding Iran’s nuclear program.
Jerome Powell to Maintain Role on the Fed Board
8:38 am
Jerome Powell confirmed his continuation on the Federal Reserve board post his chairmanship, driven by ongoing investigations into the Fed’s operations.
- Powell indicated that the independence of the Fed is under threat amid external pressures.
- The Senate Banking Committee has advanced nomination of Kevin Warsh as the next Fed chair.
Eurozone Economic Sentiment Declines in April
8:37 am
Economic confidence indicators in the Eurozone dropped in April due to rising trade uncertainties and cautious consumer attitudes.
- Economic confidence fell below expectations at 93.0.
- Consumer confidence dipped, pointing to reduced spending intentions and pessimistic economic outlooks.
The Fed Keeps Rates Steady Amid Ongoing Inflation Concerns
8:35 am
The Federal Reserve opted to maintain interest rates at 3.50-3.75% amid heightened inflation and geopolitical uncertainties.
- Internal discord was evident, with dissenting opinions regarding easing bias reflected in recent statements.
Good Morning!
8:23 am
ASX 200 futures are down 69 points (-0.79%) as of 8:30 am AEST.
Nightly Summary:
- S&P 500 and Nasdaq remained relatively flat.
- The Federal Reserve kept rates steady.
- A surge in Brent oil prices ensued following tensions with Iran.
- Major tech companies posted earnings exceeding expectations but with varied stock price reactions.
Stay tuned for more updates throughout the day!
