Table of Contents
Wednesday Market Wrap – June 18, 2025
ASX Market Overview
ASX 200 futures have opened down by 17 points, reflecting a 0.19% decline, as of 8:30 AM AEST today.
Key Highlights:
- Major US indices faced declines amid escalating tensions in the Middle East.
- A recent Bank of America fund manager survey reveals an increase in positive sentiment, lower cash reserves, and a rise in expectations for a soft landing in the economy.
- Oil prices surged by 6% following renewed conflicts in the Middle East, whereas gold prices remained stable.
Overnight Market Summary
Date: June 18, 2025, 8:24 AM (AEST)
Major Indices
| Index | Value | % Change |
|---|---|---|
| S&P 500 | 5,983 | -0.84% |
| Dow Jones | 42,216 | -0.70% |
| NASDAQ Composite | 19,521 | -0.91% |
| Russell 2000 | 2,102 | -1.04% |
Country Indices
| Country | Value | % Change |
|---|---|---|
| Canada | 26,541 | -0.10% |
| China | 3,387 | -0.04% |
| Germany | 23,435 | -1.12% |
| Hong Kong | 23,980 | -0.34% |
| India | 81,583 | -0.26% |
| Japan | 38,537 | +0.59% |
| UK | 8,834 | -0.46% |
Commodities (in USD)
| Commodity | Value | % Change |
|---|---|---|
| Gold | 3,393.60 | +0.28% |
| Copper | 4.7857 | -0.21% |
| WTI Oil | 74.84 | +4.28% |
Currency
- AUD/USD: 0.6478 (-0.71%)
Cryptocurrency
| Cryptocurrency | Value | % Change |
|---|---|---|
| Bitcoin (USD) | 104,499 | -3.90% |
| Ethereum (AUD) | 3,883 | -5.29% |
Market Activity Overview
The US markets broadly decreased, ending near their lowest levels, primarily as Middle Eastern instability rises, with former President Trump’s remarks indicating potential military actions against Iran. Oil prices rebounded significantly as Brent crude rose by over 6% to $77 per barrel.
Bank of America Global Fund Manager Survey Insights:
- Investor sentiment has returned to levels seen prior to significant geopolitical events.
- Cash reserves among fund managers decreased to 4.2%, marking the most significant drop since December 2023.
- The expectation of a soft economic landing has grown, returning to perspectives last seen in October 2024.
Market Focused Companies:
- Mitsubishi announced plans to increase prices for new US vehicles by an average of 2.1%.
- Apple supplier Jabil raised its annual revenue forecast, citing strong demand from data centres.
- Amazon anticipates reductions in its corporate workforce due to AI advancements and plans to extend Prime Day to four days.
Geopolitical Updates
Tension over Iran’s nuclear ambitions remains heightened, with President Trump discussing military strategies and encouraging evacuation notices for Tehran, indicating a firm stance against any halt in Iran’s nuclear progression.
Central Bank Updates
- The Bank of Japan has maintained its interest rates while planning to slow bond purchases to maintain market integrity.
- Reserve Bank of India Governor Malhotra pointed out the possibility for further monetary easing if inflation rates remain below targets.
Recommendations and Watchlist
Local Developments:
- APA Group’s recent acquisition of the ARC Pipeline is anticipated to enhance cash flow significantly.
- Boss Energy has confirmed it has met uranium production targets.
As markets reflect cautious sentiment due to international developments, investors may benefit from monitoring commodity prices, particularly in oil and gold, alongside observing key economic indicators and company earnings reports scheduled for today.
Economic Calendar Highlights:
- Japan’s balance of trade report for May.
- UK’s inflation rate figures.
- Updates on US housing permits and interest rate decisions.
Investors are encouraged to stay updated via live market blogs for real-time advancements.
This summary synthesizes critical financial and economic data, offering a snapshot of current market conditions and trends as of June 18, 2025.
