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Table of Contents
Tuesday Morning Wrap: Market Update and Key Insights
ASX 200 futures have dipped 6 points (-0.07%) as of 8:30 am AEST.
Summary of Key Developments
- The S&P 500 and Nasdaq reached fresh all-time highs overnight, buoyed by positive trade discussions.
- Canada has abandoned its digital services tax to rejuvenate trade negotiations with the United States.
- A trade agreement is anticipated between the EU and the US, potentially introducing a 10% universal tariff impacting several key exports from Europe.
Overnight Market Summary
Date: Tuesday, 1 July 2025, 8:21 am (AEST)
Major Indices Performance
| Name | Value | % Change |
|---|---|---|
| S&P 500 | 6,205 | +0.52% |
| Dow Jones | 44,095 | +0.63% |
| Nasdaq Composite | 20,370 | +0.47% |
| Russell 2000 | 2,175 | +0.12% |
Country Indices Performance
| Name | Value | % Change |
|---|---|---|
| Canada | 26,857 | +0.62% |
| China | 3,444 | +0.59% |
| Germany | 23,910 | -0.51% |
| Hong Kong | 24,072 | -0.87% |
| India | 83,606 | -0.54% |
| Japan | 40,487 | +0.84% |
| United Kingdom | 8,761 | -0.43% |
Commodities (USD)
| Name | Value | % Change |
|---|---|---|
| Gold | 3,304.16 | +1.10% |
| Copper | 5.0527 | -0.30% |
| WTI Oil | 64.97 | -0.77% |
Currency
| Name | Value | % Change |
|---|---|---|
| AUD/USD | 0.6581 | +0.00% |
Cryptocurrency
| Name | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 107,301 | -0.44% |
| Ethereum (AUD) | 3,789 | +1.97% |
US Sector Performance
| Sector | % Change |
|---|---|
| Information Technology | +0.98% |
| Financials | +0.86% |
| Real Estate | +0.65% |
| Health Care | +0.63% |
| Industrials | +0.50% |
| Consumer Staples | +0.45% |
| Utilities | +0.39% |
| Communication Services | +0.34% |
| Materials | +0.10% |
| Energy | -0.66% |
| Consumer Discretionary | -0.86% |
Overnight Market Highlights
- Major US indices soared close to their best levels due to favourable trade news; both the S&P 500 and Nasdaq set new highs.
- Positive signals indicate that the US and EU could finalise a trade agreement by the 9th of July deadline.
- The month concluded strongly for US markets, with notable gains from the Nasdaq (+6.57%) and S&P 500 (+4.96%).
- Traders remain optimistic about further gains, especially in leading stocks like Nvidia, amidst bullish option buying trends.
- Market reactions are mixed as concerns rise regarding profit margins for US firms due to the ongoing trade disputes.
- Analysts note that investor interest has started shifting towards European markets amidst tensions from US tariffs.
Stocks to Watch
- Oracle has secured a cloud deal projected to generate over AU$30 billion annually from FY28.
- Meta’s Zuckerberg has announced a restructuring in their AI sector to pursue "superintelligence."
- Microsoft introduced an AI tool aimed at transforming healthcare diagnostics.
- Robinhood has launched US stock and ETF tokens in the EU market.
Economic Indicators
- China’s manufacturing activity contracted for a third consecutive month in June, but new order figures suggest a potential recovery.
- Japan’s industrial production rose by a modest 0.5% in May, below market expectations.
- UK business confidence has reached a nine-year high, despite uncertainties stemming from tariffs.
What’s Ahead for Traders
- Market conditions appear stagnant around record levels, with several sectors showing promise despite weakness in banking and mining stocks.
- Stocks involved in nickel, gold, and uranium have seen recent positive movements following prior pullbacks.
Broker Updates
- Medibank has been upgraded to Overweight with a target price increased to $5.57.
- Superloop maintains a Buy rating with an enhanced target of $3.55.
This wrap-up provides essential insights into current market trends and economic indicators as of 1 July 2025. Investors are urged to stay informed and consider developments in trade and economic conditions as they navigate their investment strategies.
