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Market Summary for Thursday, 8 May 2025
ASX 200 futures trading up 8 points (+0.09%) at 8:30 AM AEST.
Key Highlights:
- Major US indices closed higher, reflecting fluctuating price movements.
- Alphabet’s stock dropped 7.5% (approximately $150 billion market capitalisation loss) due to declining Google search volumes and Apple’s consideration of integrating AI search into its browser.
- Results from companies such as ANZ, Light & Wonder, and Orica are being closely monitored.
Overnight Market Overview
- US markets saw gains despite a rollercoaster session, closing near their session highs.
- One major catalyst was the news that US and Chinese officials will be meeting in Switzerland over the weekend to discuss trade, although expectations were tempered by comments from officials suggesting no significant progress was anticipated.
- The Federal Reserve maintained interest rates at 4.25-4.50% for the third consecutive meeting.
- In investment trends, investors withdrew $8.9 billion from US equities, with $7.8 billion redirected towards foreign stocks.
Major US Indices
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,631 | +0.43% |
| Dow Jones | 41,114 | +0.70% |
| NASDAQ Comp | 17,738 | +0.27% |
| Russell 2000 | 1,990 | +0.33% |
Commodities
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,368.88 | -0.94% |
| Copper | 4.5777 | -3.58% |
| WTI Oil | 58.07 | -1.73% |
Cryptocurrency Market
| Crypto | Value (USD) | % Change |
|---|---|---|
| Bitcoin | 97,214 | +2.03% |
| Ethereum (AUD) | 2,819 | +0.84% |
Sector Performance in US Markets
- Consumer Discretionary: +1.02%
- Information Technology: +0.91%
- Health Care: +0.81%
- Financials: +0.62%
- Utilities: +0.29%
Company Updates
- Alphabet: Shares fell sharply following a report of decreased Google search volumes, increasing worries over competition from AI technologies.
- Super Micro: Provided disappointing revenue guidance for Q4, attributed to delayed customer orders.
- AMD: Reported Q2 revenue expectations that exceeded forecasts but flagged a significant potential financial impact from export restrictions.
- Tesla: Experienced a decline in shipments in China for the seventh consecutive month.
Central Bank Activity
- The US Federal Reserve maintained their current interest rates while highlighting ongoing economic expansion.
- The People’s Bank of China reduced the seven-day reverse repo rate to stimulate economic growth.
Economic Developments
- German factory orders rose significantly, surpassing expectations, indicating a beneficial trend ahead of potential tariff announcements.
- New Zealand’s unemployment rate remained stable, contrary to expectations of a rise.
ASX Insights for Today
- ANZ Bank: Reported a cash NPAT of $3.56 billion for the first half of 2025, meeting market expectations but fell short on net interest margin.
- Light & Wonder: Reported Q1 EBITDA in line with expectations, although potential tariff impacts were noted.
- Orica: Surpassed NPAT projections and reaffirmed full-year guidance, with dividends showing solid growth.
Upcoming Watch
- Zip: Following a positive earnings report from Sezzle, market observers speculate it could provide an uplift for Zip after a robust share price increase yesterday.
- Super Retail Group: Latest trading update indicated challenges may persist in sales growth and profit margins.
Broker Recommendations
- JB Hi-Fi: Downgraded to Neutral but with a price target increase.
- Paladin Energy: Downgraded to Neutral, with revised target price reflecting market conditions.
Important Corporate Actions
- Ex-Dividend: Future Generation Australia (FGG) on May 8.
- Other Events: Earnings releases from ANZ and Orica expected, along with dividend payments and AGMs scheduled.
For traders and investors, today’s developments could pose both challenges and opportunities as the markets adjust to current economic indicators and corporate performances. Keep an eye on the performance of the ASX as updates from key corporations shape sentiment and stock valuations.
