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Table of Contents
Morning Market Wrap – 4 June 2025
ASX 200 futures have risen by 23 points, translating to a 0.27% increase, as observed at 8:30 AM AEST.
Key Highlights:
- The S&P 500 has experienced gains for the second consecutive day, and the Nasdaq index has successfully recovered its year-to-date declines.
- The OECD has revised its growth projections for the US, lowering the forecast to 1.6% for this year and 1.5% for 2026, attributing the downgrade to tariff impacts and ongoing policy uncertainties.
- Virgin Australia has initiated its IPO bookbuild, aiming to secure $685 million.
Overnight Market Summary
As of 4 June 2025, 8:20 AM AEST:
Major Indices Performance
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,970 | +0.58% |
| Dow Jones | 42,520 | +0.51% |
| NASDAQ Comp | 19,399 | +0.81% |
| Russell 2000 | 2,103 | +1.59% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 26,427 | +0.14% |
| China | 3,362 | +0.43% |
| Germany | 24,092 | +0.67% |
| Hong Kong | 23,512 | +1.53% |
| India | 80,738 | -0.78% |
| Japan | 37,447 | -0.06% |
| United Kingdom | 8,787 | +0.15% |
Commodities (USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,377.10 | +0.72% |
| Copper | 4.834 | +5.14% |
| WTI Oil | 63.41 | +1.42% |
Currency
| Currency Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6467 | -0.35% |
Cryptocurrency
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 105,533 | +0.30% |
| Ethereum (AUD) | 4,011 | +0.70% |
Miscellaneous
| Item | Value | % Change |
|---|---|---|
| US 10 Yr T-bond | 4.46 | -0.04% |
| VIX | 17.69 | -3.65% |
US Sector Performance
| Sector | % Change |
|---|---|
| Information Technology | +1.48% |
| Energy | +1.11% |
| Materials | +0.97% |
| Industrials | +0.76% |
| Consumer Discretionary | +0.31% |
| Utilities | +0.22% |
| Health Care | +0.19% |
| Financials | +0.18% |
| Consumer Staples | -0.15% |
| Real Estate | -0.39% |
| Communication Services | -0.75% |
Overnight Market Sentiment
- Major US indices ended on a positive note, achieving near-record highs amidst a market trend that has seen a steady uptick without significant catalysts.
- Factors influencing this sentiment included stronger-than-anticipated US job openings for April, a retreat in China’s manufacturing PMI, and remarks regarding potential stagflation risks from Federal Reserve officials.
- Deutsche Bank has raised its S&P 500 target following expectations of further US trade agreements. Concurrently, hedge funds reportedly enjoyed gains from a declining dollar and volatile equity markets but encountered setbacks in commodities and fixed income.
- Global bond markets witnessed increased support following a solid demand for Japan’s 10-year bond sale.
Stock Highlights
- Tesla: Reported a significant 53.7% drop in Swedish sales year over year for May.
- Ford: Announced a 16% increase in US sales, driven primarily by pickup trucks and crossovers.
- CVS: Committed to investing $20 billion over the next decade to enhance its technological capabilities for consumer healthcare.
- Microsoft: Continued its job cuts, laying off over 300 employees, which follows a broader reduction of 6,000 jobs announced in May.
- Walmart: Generated concerns regarding retail employment due to its revenue growth through e-commerce and automation.
Economic Updates
- The OECD has lowered its growth analysis for the US, predicting a 1.6% increase this year, with further reductions foreseen for 2026, attributing these adjustments largely to tariff impacts.
- Australia’s Ai Group Industry Index and GDP growth figures are set for release, with the Bank of Canada expected to maintain its interest rate.
What to Watch Today
- The ASX 200 approaches all-time highs, with futures indicating an opening within 1% of its February peak, reflecting an impressive recovery of over 15% from April lows.
- Technology and energy sectors are anticipated to perform well, mirroring trends seen in the overnight S&P 500 performance.
- Broker movements indicate upgrades and downgrades focusing on key market players, shaping expectations for future performances.
This comprehensive landscape provides essential insights into the current market dynamics, reflecting ongoing trends and significant developments across sectors, economies, and financial instruments.
