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Table of Contents
Market Overview
ASX 200 futures rose 18 points (+0.21%) early this morning. Key highlights include:
- The S&P 500 has regained ground and is slightly up year-to-date, bouncing back from a 17% dip earlier.
- Cool inflation figures from the US have stirred a positive risk appetite among investors.
- Commonwealth Bank’s Q3 results align with expectations, while Aristocrat’s earnings fell short.
Overnight Summary (14 May 2025)
Major Indices Performance:
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,887 | +0.72% |
| Dow Jones | 42,140 | -0.64% |
| NASDAQ | 19,010 | +1.61% |
| Russell 2000 | 2,102 | +0.49% |
Country Indices:
| Country | Value | % Change |
|---|---|---|
| Canada | 25,617 | +0.33% |
| China | 3,375 | +0.17% |
| Germany | 23,639 | +0.31% |
| Hong Kong | 23,108 | -1.87% |
| India | 81,148 | -1.55% |
| Japan | 38,183 | +1.43% |
| United Kingdom | 8,603 | -0.02% |
Commodities Overview:
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,247.8 | -0.06% |
| Copper | 4.723 | +1.24% |
| WTI Oil | 63.67 | +2.78% |
Currency and Cryptocurrency:
| Currency | Value | % Change |
|---|---|---|
| AUD/USD | 0.6467 | +1.51% |
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 104,305 | +1.75% |
| Ethereum (AUD) | 4,153 | +8.32% |
Key Highlights from US Markets:
- Major US indices mostly closed higher, with the S&P 500 nearly recovering to its best levels.
- The latest inflation report indicated slower price growth, enhancing market confidence while suggesting only minimal interest rate cuts expected by the year’s end.
- The recent US-China tariff discussions have prompted optimism, bolstered by Goldman Sachs raising its S&P 500 price target to 5,900 in light of this development.
Company Updates:
Tech Sector:
- Nvidia has partnered with Saudi Arabia to establish AI factories, committing to deliver 18,000 AI chips.
- IBM declares layoffs affecting around 3% of its workforce.
- Apple plans to launch a new tool aimed at improving iPhone battery longevity.
Performance Mover:
- Coinbase shares surged over 20% following its inclusion in the S&P 500.
Central Banks and Economic Indicators:
- The market is now predicting three rate cuts by the Reserve Bank of Australia for 2025, a slight adjustment from previous forecasts in response to economic conditions.
- Upcoming data may show that the US-China trade truce helps to prevent a recession, although some slowing is inevitable.
Australasian Market Insights:
ASX 200 Key Movers:
- Aristocrat Leisure reported lower-than-expected earnings but announced an increased dividend.
- Block Holdings is expected to see stock price appreciation due to optimistic presentation outcomes suggesting conservative outlook management.
- CBA achieved results in line with market forecasts for Q3.
What to Watch:
- The energy sector is set for recovery as oil prices rise, and trends in technology stocks signal potential upward movement for local firms.
- Defensive stocks such as Woolworths and Coles may continue to be under scrutiny, following significant sell-offs yesterday.
Key Events:
Dividends and Ex-Dividends:
- No major dividends are being paid today, but several companies will be issuing dividends in the upcoming days.
Economic Calendar:
- No significant economic reports expected today.
Conclusion
Market optimism is gaining momentum amid easing inflation and improved investor sentiment, particularly in the tech and energy sectors. The evolving dynamics of the US-China economic relationship and its effects on local stocks will be crucial to watch in the coming days. The ASX looks poised for positive activity as investors adjust to recent performance indicators and economic data.
