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Market Wrap: 3rd September 2025
ASX 200 futures are down 37 points (-0.41%) as of 8:30 am AEST.
In Summary:
- Major US indexes are experiencing declines, typical for September, historically a weak month for the market.
- Historically, the S&P 500 has averaged a -1.17% return in September since 1928.
- Gold prices are surging past US$3,500.
Overnight Summary (3rd September 2025)
Major Indices
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 6,416 | -0.69% |
| Dow Jones | 45,296 | -0.55% |
| NASDAQ Composite | 21,280 | -0.82% |
| Russell 2000 | 2,352 | -0.60% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 28,616 | +0.18% |
| China | 3,858 | -0.45% |
| Germany | 23,487 | -2.29% |
| Hong Kong | 25,497 | -0.47% |
| India | 80,158 | -0.26% |
| Japan | 42,310 | +0.29% |
| United Kingdom | 9,117 | -0.87% |
Commodities (USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,533.02 | +1.62% |
| Copper | 4.5756 | +1.41% |
| WTI Oil | 65.62 | +1.40% |
Currency
| Currency Pair | Value | % Change |
|---|---|---|
| AUD/USD | 0.6519 | -0.02% |
Cryptocurrency
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 110,965 | +3.07% |
| Ethereum (AUD) | 6,616 | +1.21% |
Key Highlights from the Overnight Markets
- US benchmarks closed lower but managed to recover slightly.
- Seasonal pressures, rising bond yields, and new volatility regarding Trump’s tariffs are affecting the market environment.
- Gold prices are on a five-day winning streak due to a confluence of factors, including risk-off sentiment in equities and rising concerns around a potential US government shutdown.
Stocks in Focus
- Tesla reported a significant drop in sales across Europe, attributed to heightened competition and backlash against its CEO Elon Musk.
- Elon Musk forecasted that 80% of Tesla’s value will stem from its humanoid robot initiative, Optimus.
- Constellation Brands reduced its earnings outlook due to a decline in demand, particularly from Hispanic consumers.
- Klarna and Gemini are launching roadshows in anticipation of a vibrant IPO market continuing through 2026.
- Starbucks witnessed record-breaking sales driven by its seasonal product launch.
Central Bank Commentary
- Bank of Japan executives indicated a continued commitment to rate hikes if conditions allow.
- Reserve Bank of Australia has expressed caution regarding future rate decisions.
ASX Preview (3rd September 2025)
Key Stocks to Watch
- Lotus Resources plans to raise $70 million to enhance production at its Kayelekera uranium mine.
- Pinnacle Investment Management has increased its stakes in Coast Entertainment and Adore Beauty.
- Tasmea is expected to see significant block trades as the escrow period for co-founders concludes soon.
What to Monitor
- Gold Prices: With prices surging above US$3,500, investor interest in gold mining stocks is expected to grow.
- Market Sentiment: Following a strong performance in August, traders might exhibit cautious tendencies, particularly in the tech and resource sectors.
- Nickel Miners ETF has seen a rise amid ongoing protests in Indonesia, signalling potential movement in that market.
Broker Updates
- NWH upgraded to Outperform, new target at $4.45 from $3.95 (Macquarie).
- Westpac downgraded to Neutral, target increased.
- Worley upgraded to Outperform, target revised to $18.50.
- Xero downgraded to Sector Perform.
Economical Insights
- Economic releases include the Ai Group Industry Index and the Q2 GDP Growth figures due for release.
Conclusion
As we navigate early September, marked with historical market trends, traders and investors should prepare for volatility while considering sectors showing potential resilience, particularly in commodities like gold.
