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Monday Morning Wrap-Up – 2nd June 2025
ASX 200 futures are up by 8 points (+0.09%) as of 8:30 AM AEST.
Key Takeaways
- Major US indices saw limited movement overnight, yet the S&P 500 and Nasdaq celebrated their best monthly performances in over a year.
- Discussions around tariffs between the US and China are stagnating, as both nations escalate existing restrictions.
- Notable Australian corporate actions include Soul Patts merging with Brickworks, and Perenti securing a $1 billion contract.
Overnight Summary
Market Updates as of 2nd June 2025, 8:21 AM AEST:
Major Indices Performance
| Name | Value | % Change |
|---|---|---|
| S&P 500 | 5,912 | -0.01% |
| Dow Jones | 42,270 | +0.13% |
| NASDAQ Comp | 19,114 | -0.32% |
| Russell 2000 | 2,066 | -0.41% |
International Indices Performance
| Country | Value | % Change |
|---|---|---|
| Canada | 26,175 | -0.14% |
| China | 3,347 | -0.47% |
| Germany | 23,997 | +0.27% |
| Hong Kong | 23,290 | -1.20% |
| India | 81,451 | -0.22% |
| Japan | 37,965 | -1.22% |
| United Kingdom | 8,772 | +0.64% |
Commodities
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,288.90 | +0.01% |
| Copper | 4.68 | +0.07% |
| WTI Oil | 60.79 | -0.25% |
Currency
| Currency | Value | % Change |
|---|---|---|
| AUD/USD | 0.6435 | -0.14% |
Cryptocurrency
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 105,662 | +0.74% |
| Ethereum (AUD) | 3,950 | +0.11% |
US Sectors Performance
| Sector | % Change |
|---|---|
| Consumer Staples | +1.16% |
| Utilities | +1.08% |
| Communication Services | +0.49% |
| Health Care | +0.25% |
| Financials | +0.20% |
| Real Estate | +0.13% |
| Materials | +0.12% |
| Industrials | +0.11% |
| Information Technology | -0.43% |
| Consumer Discretionary | -0.58% |
| Energy | -0.68% |
Market Sentiments
The S&P 500 saw a mid-session rally, allowing it to regain some losses after a flat start. Notably, key indices such as Nasdaq and S&P have delivered their strongest monthly gains since November 2023, propelled by easing tariff tensions.
Corporate Highlights
- Dell raised its profit forecast driven by heightened AI server demand.
- Costco’s third-quarter earnings exceeded expectations despite tariff impacts.
- Zscaler saw a surge in shares following strong quarterly results.
- Gap’s earnings report suffered due to tariff-related costs, leading to a sharp decline in share prices.
- Ford warned of potential job cuts contingent on changes to clean energy tax incentives.
Economic Insights
- Economic indicators show the US April core PCE rose marginally, while personal spending growth slowed.
- China’s manufacturing PMI improved slightly but remains fragile as trade tensions persist.
- Spanish inflation has eased, strengthening prospects for potential ECB rate cuts.
Local Developments (ASX Highlights)
- Cash Converters has acquired 10 UK franchises for $15.7 million, expecting the purchase to be earnings accretive.
- Perenti awarded a significant $1.1 billion contract for underground mining operations.
- Soul Patts plans to merge with Brickworks, creating a combined entity with a market cap of $14 billion.
What to Watch Today
Anticipate a quiet market start as few corporate updates arise. However, the IPO market appears to be showing signs of activity.
Broker Moves
- Fisher & Paykel upgraded to Overweight from Equal-weight with an increased price target.
- Lotus Resources initiated at Underweight with a conservative price target.
Key Events This Week
- Various companies are trading ex-dividend, including Pengana Global Private Credit Trust.
- Economic releases of interest today include the ANZ-Indeed Job Ads and US ISM Manufacturing PMI.
The market’s direction remains tethered to ongoing tariff discussions while corporate earnings shape investor sentiment. Stay tuned for developments as June progresses.
