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Thursday Market Wrap-Up (12th June 2025)
Market Overview
ASX 200 futures have seen a positive start, up by 17 points (+0.19%) as of 8:30 am AEST.
Key Highlights:
- US stocks faced pressure following threats from Iran to strike US bases if ongoing nuclear discussions do not succeed.
- The US inflation rate showed a decline for the fourth consecutive month, defying expectations.
- Oil prices surged by 6% amidst escalating tensions in the Middle East, with Brent crude crossing US$70 per barrel for the first time since May.
Overnight Market Performance
Date: 12th June 2025 | Time: 8:31 am AEST
| Major US Indices: | Index | Value | % Change |
|---|---|---|---|
| S&P 500 | 6,022 | -0.27% | |
| Dow Jones | 42,866 | 0.00% | |
| NASDAQ Comp | 19,616 | -0.50% | |
| Russell 2000 | 2,148 | -0.38% |
| International Indices Performance: | Country | Value | % Change |
|---|---|---|---|
| Canada | 26,524 | +0.37% | |
| China | 3,402 | +0.52% | |
| Germany | 23,949 | -0.16% | |
| Hong Kong | 24,367 | +0.84% | |
| India | 82,515 | +0.15% | |
| Japan | 38,421 | +0.55% | |
| UK | 8,864 | +0.13% |
| Commodity Prices (in USD): | Commodity | Value | % Change |
|---|---|---|---|
| Gold | 3,361.0 | +0.99% | |
| Copper | 4.7926 | -1.72% | |
| WTI Oil | 68.15 | +4.88% |
| Currency Trends: | Currency Pair | Value | % Change |
|---|---|---|---|
| AUD/USD | 0.6503 | -0.32% |
| Cryptocurrency Market: | Cryptocurrency | Value | % Change |
|---|---|---|---|
| Bitcoin (USD) | 108,501 | -1.32% | |
| Ethereum (AUD) | 4,250 | -1.08% |
| Sector Performance in the US: | Sector | % Change |
|---|---|---|
| Energy | +1.49% | |
| Utilities | +0.04% | |
| Healthcare | +0.04% | |
| Industrials | +0.03% | |
| Financials | -0.14% | |
| Information Tech | -0.28% | |
| Consumer Staples | -0.38% | |
| Real Estate | -0.54% | |
| Communication Services | -0.58% | |
| Materials | -0.98% | |
| Consumer Discretionary | -1.02% |
Market Drivers:
- US benchmarks slipped after a brief surge, reflecting market uncertainties stemming from heightened Middle East tensions.
- The potential for declining bond yields remains, though the long end may see risks due to rising debts.
- Oil prices elevated on the back of potential supply disruptions, which has affected related sectors.
Corporate Announcements:
- Meta’s CEO, Mark Zuckerberg, is investing $14 billion in Scale AI, recruiting co-founder Alexandr Wang to amplify AI initiatives.
- Starbucks is considering selling a stake in its Chinese operations to bolster sales.
- General Motors plans to invest $4 billion to ramp up gasoline vehicle production in response to tariffs and subdued EV demand.
- Warner Bros faces ongoing challenges due to the cable TV sector’s struggles while Moody’s downgrades its debt to junk status.
Central Banks and Economic Updates:
- The BOJ is expected to moderate its bond purchase tapering next year.
- ECB representatives hint at more potential rate cuts.
Geopolitical Concerns:
- The US and China are negotiating a framework to renegotiate trade terms and alleviate export restrictions.
- Diplomatic tensions are heightened as the US has ordered partial evacuation of its embassy in Baghdad due to security threats from Iran.
ASX Outlook:
- Today could see increased volatility as markets respond to geopolitical tensions and trade negotiations while reacting to higher valuations.
- Key sectors to watch include energy, particularly given the surge in oil prices, which has yet to impact Australian energy stocks significantly.
Important Corporate Actions:
- Upcoming ex-dividend stocks include Champion Iron and Dominion Income Trust today.
Monitoring these factors will be crucial as the day progresses, with investors closely watching for developments both domestically and globally.
