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Thursday Morning Market Overview (29 May 2025)
ASX Overview:
ASX 200 futures have shown a modest increase of 13 points (+0.15%) as of 8:30 am AEST.
Market Snapshot:
- The major US indices concluded the previous session mostly lower, reflecting tepid US-EU trade discussions and disappointing demand in Japan’s long-term bond market.
- In contrast, US futures observed a rise of approximately 0.5%, buoyed by Nvidia’s quarterly earnings that exceeded market forecasts.
| Key Market Indices: | Index | Value | Change (%) |
|---|---|---|---|
| S&P 500 | 5,889 | -0.56 | |
| Dow Jones | 42,099 | -0.58 | |
| NASDAQ Composite | 19,101 | -0.51 | |
| Russell 2000 | 2,068 | -1.08 |
| International Indices: | Country | Value | Change (%) |
|---|---|---|---|
| Canada | 26,283 | +0.06 | |
| China | 3,340 | -0.02 | |
| Germany | 24,038 | -0.78 | |
| Hong Kong | 23,258 | -0.53 | |
| India | 81,312 | -0.29 | |
| Japan | 37,722 | 0.00 | |
| UK | 8,726 | -0.59 |
| Commodities Summary: | Commodity | Price (USD) | Change (%) |
|---|---|---|---|
| Gold | 3,294.90 | +0.24 | |
| Copper | 4.67 | +0.31 | |
| WTI Oil | 61.84 | +1.56 |
Currency Exchange Rates:
- AUD/USD: 0.6423 (-0.34%)
| Cryptocurrency Performance: | Cryptocurrency | Price (USD) | Change (%) |
|---|---|---|---|
| Bitcoin | 107,425 | -1.59 | |
| Ethereum (AUD) | 4,126 | -0.63 |
Overnight Market Recap
The major US benchmarks ended the session with a decline. Market breadth showed weakness with all sectors registering losses. The S&P 500 faced a slight setback after its notable 2.05% rally during the prior session.
Trade negotiations with the EU have not shown positive developments, contributing to market concerns. Concurrently, a disappointing auction of Japan’s 40-year bonds has led to upward pressure on bond yields.
- Major US indices struggled to maintain momentum amidst weak sector performance.
- The market is reacting to Nvidia’s earnings report, which indicated a healthy demand for AI-related products, with shares spiking post-release.
- Expectations are that Nvidia’s robust performance could lend some support to tech stocks going forward.
Nvidia’s Earnings Highlights
Nvidia reported significant growth in its quarterly results:
- Revenue surged by 69.2% to $44 billion, which beat the market expectation of $43.3 billion.
- Data centre revenue grew by 73.3% despite slightly missing estimates.
- Overall, Nvidia’s stock increased by roughly 4% in after-hours trading, showcasing strong demand for its AI infrastructure.
Global Economic Impact
The lingering effects of trade tariffs and geopolitical tensions continue to play a pivotal role in shaping market sentiment:
- The EU deliberates on potential agreements with the US regarding trade tariffs on steel and technology sectors.
- Amidst economic uncertainty, indications suggest that most participants in the US Federal Reserve remain cautious regarding rate cut discussions.
Upcoming Events & Alerts
- Earnings releases to look out for include Champion Iron (CIA) and Select Harvests (SHV).
- Economic indicators scheduled for release include the US GDP figures for Q1, expected at 10:30 pm AEST.
ASX Highlights for Today
- ARN Media: Spheria Asset Management ups its shareholding.
- Champion Iron: Reports an adjusted net income of C$142 million, accompanied by dividend announcements.
- IKE Group: Sees significant growth in subscription revenue.
- Resolute Mining: Has not received clarity regarding exploration permits in Guinea.
As we look towards today’s trading session, factors such as emerging trends from Nvidia’s earnings and shifts in yield dynamics may influence ASX 200 movements, which closed slightly lower yesterday.
Conclusion
Market participants should remain attuned to global economic indicators and sectoral performances, particularly in technology and commodities, as the overarching sentiment appears to be influenced by cautious optimism amidst ongoing geopolitical challenges.
