Table of Contents
ASX Morning Wrap – June 23, 2025
Market Overview
The ASX 200 futures have recorded a decline of 23 points (-0.27%) as of 8:30 am AEST.
Key Highlights:
- US markets were closed in observance of Juneteenth, leading to low activity in overseas markets.
- European indices encountered difficulties amidst worries regarding escalating tensions between the US, Israel, and Iran.
- It is anticipated that the session ahead will be relatively quiet with low liquidity and uninspired price movements.
Overnight Market Summary (as of June 20)
| Major Indices Performance: | Name | Value | % Change |
|---|---|---|---|
| S&P 500 | 5,981 | -0.03% | |
| Dow Jones | 42,172 | -0.10% | |
| NASDAQ Comp | 19,546 | +0.13% | |
| Russell 2000 | 2,113 | +0.52% |
| Country Indices: | Country | Value | % Change |
|---|---|---|---|
| Canada | 26,506 | -0.20% | |
| China | 3,362 | -0.79% | |
| Germany | 23,057 | -1.12% | |
| Hong Kong | 23,238 | -1.99% | |
| India | 81,362 | -0.10% | |
| Japan | 38,488 | -1.02% | |
| UK | 8,792 | -0.58% |
| Commodities (USD): | Commodity | Value | % Change |
|---|---|---|---|
| Gold | 3,366.68 | -0.06% | |
| Copper | 4.7987 | -1.05% | |
| WTI Oil | 75.80 | +0.88% |
| Currency Rates: | Currency | Value | % Change |
|---|---|---|---|
| AUD/USD | 0.6478 | -0.45% |
| Cryptocurrency: | Crypto | Value | % Change |
|---|---|---|---|
| Bitcoin (USD) | 104,503 | -0.63% | |
| Ethereum (AUD) | 3,879 | -0.78% |
Market Movements
US Markets:
- Observed closures for Juneteenth contributed to a stagnant trading environment in the US.
European Markets:
- European stocks fell for the third consecutive session, with the Stoxx 600 declining by 0.8%. The UK’s FTSE 100 and France’s CAC 40 witnessed declines of 0.6% and 1.3%, respectively.
- Concerns about potential US military action against Iran negatively affected market sentiments.
Stock Insights
- Microsoft might end negotiations with OpenAI.
- Luxury brands are adapting to market demands by offering affordable and smaller products to lure customers.
- Hays shares dropped 9.8% following a disappointing business outlook.
Central Banks Update
- The Federal Reserve warns of increasing stagflation risks due to external pressures.
- The Bank of England has maintained its current interest rates.
- Norway surprised markets with a 25 basis point rate cut as a proactive measure amid economic changes.
Geopolitical Updates
- President Trump has reportedly approved plans for a potential strike on Iran, which is expected soon.
- Rising shipping insurance costs in the Middle East and doubled tanker rates post-Israel conflict have alarmed investors.
Tariff and Trade Developments
- The EU is considering a trade agreement similar to the UK’s with the US, likely involving some tariffs.
- Discussions on tariffs are ongoing as the US Supreme Court’s review is delayed.
Economic Landscape
- UK consumer confidence has surged, mainly driven by younger consumers following a minimum wage increase.
- Australian unemployment figures show stability at 4.1%, but with a slight job loss primarily in part-time roles.
ASX Focus for Today
Expect the ASX to witness subdued trading conditions, with indicators suggesting stocks may remain level or decline slightly. Symal projects it will exceed its FY25 EBITDA guidance of $102.3 million, despite a soft revenue forecast of around $900 million due to project timing.
Broker Recommendations
- Centuria Capital and Centuria Office REIT both received upgrades to Neutral.
- Charter Hall Retail REIT and HomeCo Daily Needs REIT faced downgrades to Neutral, reflecting changing analyst outlooks.
Important Events
No stocks are trading ex-dividend today.
Economic Calendar (AEST):
- 9:30 am: Japan Inflation (May)
- 11:15 pm: China Loan Prime Rate
- 4:00 pm: UK Retail Sales (May)
In conclusion, as we proceed through the trading day, the Australian market reflects cautious sentiment due to geopolitical uncertainties and lingering economic concerns. Keep an eye on international developments as they may influence local markets.
