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Table of Contents
Friday Market Wrap-Up
ASX 200 Futures Update
As of 8:30 am AEST, ASX 200 futures have dipped 13 points, representing a decline of 0.15%.
Key Highlights:
- US Market Performance: Major US stock indices experienced slight declines, overshadowed by Tesla’s significant 14% drop amid escalating tensions between President Trump and Elon Musk.
- European Central Bank Action: The ECB has reduced interest rates by 25 basis points, now at 2.0%. This move aligns with market predictions, with indications that the rate-cutting cycle is nearing its end.
- Trade Relations Update: President Trump remarked on a "very good" discussion with Chinese President Xi, anticipating further engagement from their respective trade teams soon.
Overnight Market Summary
US Indices Performance
- S&P 500: 5,939 (-0.53%)
- Dow Jones: 42,320 (-0.25%)
- NASDAQ Comp: 19,298 (-0.83%)
- Russell 2000: 2,097 (-0.05%)
Global Indices
- Canada: 26,342 (+0.05%)
- China: 3,384 (+0.23%)
- Germany: 24,324 (+0.19%)
- Hong Kong: 23,907 (+1.07%)
- India: 81,442 (+0.55%)
- Japan: 37,554 (-0.51%)
- United Kingdom: 8,811 (+0.11%)
Commodities Performance (USD)
- Gold: $3,355.76 (-0.51%)
- Copper: $4.8924 (+0.38%)
- WTI Oil: $63.37 (+0.83%)
Currency Exchange
- AUD/USD: 0.6505 (+0.23%)
Cryptocurrency Market
- Bitcoin (USD): $101,183 (-3.57%)
- Ethereum (AUD): $3,722 (-7.49%)
US Sector Performance
- Communication Services: +0.06%
- Real Estate: -0.07%
- Health Care: -0.08%
- Industrials: -0.09%
- Energy: -0.16%
- Utilities: -0.16%
- Financials: -0.26%
- Information Technology: -0.40%
- Materials: -0.57%
- Consumer Staples: -1.19%
- Consumer Discretionary: -2.47%
Key Market Developments
Overnight Trends
- General Market: US stocks remain under pressure, particularly due to turmoil stemming from the Trump-Musk conflict and rising initial jobless claims – the highest in eight months.
- Broadcom’s Earnings Decline: Influential on the market mood, Broadcom’s quarterly performance fell short of expectations, intensifying scrutiny over AI spending.
- Japan’s Bond Auction: The recent auction saw weaker demand, suggesting cautious investor sentiment.
Noteworthy Stocks
- Broadcom: Shares dropped significantly after the company posted lacklustre earnings and projected revenue.
- Tesla: Shares tumbled over 10% as concerns about potential profit losses loomed.
- Procter & Gamble: Announced plans to cut approximately 7,000 jobs due to unpredictable consumer demand.
- Circle’s IPO: The stablecoin issuer saw substantial gains during its market debut.
Central Bank Updates
- ECB Rate Decision: The ECB’s recent rate cut signifies a strategic move to mitigate economic pressures.
- Bank of Japan’s Future Moves: The BOJ may consider reducing the pace of its bond tapering.
- Reserve Bank of India: Expected to follow suit with a rate cut to stimulate growth.
Domestic Market Activity (ASX)
- Evolution Mining: Reported significant mineral resource updates.
- Insignia Financial: Ongoing takeover discussions.
- Fletcher Building: Legal disputes emerging against Skycity Entertainment.
- Ora Banda Mining: Adjusted production forecasts for FY25.
What to Watch Today:
- Silver prices surged to $35.7/oz, spurring interest in related ASX stocks.
- Copper experienced fluctuations due to tariff concerns and operational disruptions.
- The lithium market remains steady, especially amid notable recent returns for Pilbara Minerals.
Broker Updates
- Cosol: Buy rating reiterated; target lowered to $0.90.
- Cuscal: Buy rating maintained; target increased to $3.50.
Key Dates Ahead
- Economic Calendar:
- 11:30 am: Australia Balance of Trade (April)
- 11:45 am: China Caixin Services PMI
- 10:15 pm: ECB Interest Rate Decision (Expected – 25 bps cut)
Keep an eye on the performance of essential commodities and currency moves as we head into the trading day.
