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Market Overview – Monday, 26 May 2025
As of 8:30 am AEST, ASX 200 futures have declined by 22 points, or 0.35%. This downward trend reflects broader market concerns, particularly in the United States where the S&P 500 has experienced losses for four consecutive sessions, predominantly driven by declines in technology and growth sectors.
Key Highlights:
- US Markets: The S&P 500 fell by 0.67%, while the Dow Jones and Nasdaq decreased by 0.61% and 1.00%, respectively.
- Tariff Developments: Former President Trump has threatened a 50% tariff on the EU, with an extension on the deadline to 9 July.
- Commodity Gains: Stocks linked to uranium, gold, and copper have benefitted from increased spot prices.
Overnight Summary
Market Movements:
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Major Indices:
- S&P 500: 5,803 (-0.67%)
- Dow Jones: 41,603 (-0.61%)
- NASDAQ: 18,737 (-1.00%)
- Russell 2000: 2,040 (-0.28%)
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Country Indices:
- Canada: +0.10%
- China: -0.94%
- Germany: -1.54%
- India: +0.95%
- Japan: +0.47%
- United Kingdom: -0.24%
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Commodities Prices (USD):
- Gold: $3,365.8 (+0.23%)
- Copper: $4.8365 (+0.15%)
- WTI Oil: $61.53 (+0.54%)
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Currency Exchange:
- AUD/USD: 0.6491 (+1.23%)
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Cryptocurrencies:
- Bitcoin: $107,680 (-0.98%)
- Ethereum: $3,886 (-0.38%)
- Fixed Income:
- US 10 Year T-bond: 4.509 (-0.97%)
- VIX: 22.29 (+9.91%)
Sector Analysis
The performance across US market sectors was mixed, with utilities (+1.16%) and consumer staples (+0.31%) showing some resilience. In contrast, traditionally stronger sectors such as information technology (-1.33%) and consumer discretionary (-0.91%) faced significant losses.
Key Market Events
- US Economic Data: The ongoing trade tensions and tariff threats have led to investors diversifying into non-US bonds and questioning the sustainability of growth.
- Stock Movements: Notable companies like Apple faced a decline, dropping 3% due to tariff concerns.
- Federal Reserve Stance: Recent Supreme Court rulings potentially insulate the Fed from political pressures under Trump’s administration.
Tariff Threats
Trump’s escalating tariff threats have raised fears among investors, with significant implications for trade between the US and EU. The proposed tariffs could affect various goods contributing roughly 4.9% to the GDP in 2024.
Economic Indicators
- UK Retail Sales: Jumped 1.2% in April, surpassing forecasts.
- Inflation Rates: Japan’s core inflation rose to 3.5%, influenced by energy costs.
- German Economy: Posted a surprisingly strong growth of 0.4% in Q1.
ASX Overview
In local markets, several companies are making headlines:
- Horizon Minerals successfully raised $30 million,
- Genesis Minerals is expanding its reach with the acquisition of the Laverton Gold Project for $250 million,
- Origin Energy has updated its FY25 guidance,
- There is interest in Bellevue Gold from multiple mining companies.
Prospective Movements
Today, expect the focus to remain on uranium stocks following a significant increase overnight where the Global X Uranium ETF surged 11.6%. Gold and copper stocks are also expected to see continued movements due to positive market trends.
Upcoming Events
- Dividends: Payable today indicate a strong focus on company returns, with notable names like Dalrymple Bay Infrastructure distributing $0.059 per share.
Conclusion
As we navigate the upcoming sessions, watch closely for developments in tariffs, commodity prices, and the potential volatility from geopolitical tensions, including those affecting Australia’s trade landscape. The interplay of domestic earnings reports and global market hints will be critical in shaping investor sentiment and market trajectories.
