Markets

Insights on global financial markets, including stocks, currencies, and more.

Markets
Health Care the only highlight as ASX win streak ends
The Australian sharemarket snapped a seven-day winning streak by closing about 1% lower on Monday with just one sector finishing in the black, as one of the Big Four banks handed down a weaker than expected result. The S&P/ASX 200 finished 80.20 points or 0.97% down at 8,157.80, dropping steadily through the day despite a brief rally in the early afternoon. Health Care was the only one of the 11 ASX sectors to finish higher, but only just at 0.06%, helped by increases in the prices of sector giant CSL along with Sigma Healthcare, Fisher & Paykel Health Care and Ramsay Healthcare. This helped push the index to a 5.35% gain over the last five days. Despite a strong finish on Wall Street on Friday, the tone for the ASX was set by falls in the U.S. benchmark indices in subsequent futures trading. Westpac Banking Corp led the financials index down after announcing an interim profit that was 1% below the previous corresponding period and well below consensus forecasts, with the share price ending $1.00 or 2.99% lower at $32.45. Endeavour Group finished flat at $4.16 after disclosing subdued third quarter trading but solid Easter sales in the first quarter to date. In the fixed interest market, the Australian Governm
Markets
Gold price up as Trump seeks China trade deal
Gold prices rose on Monday, as United States President Donald Trump reiterated his call for a trade deal with China. Spot gold prices increased by 0.59% to US$3,259.27 as of 4 pm (AEST). The U.S. has imposed 145% tariffs on goods from China, with China adding a 125% reciprocal tariff. Trump said in an NBC interview airing today that he would be willing to eventually lower tariffs on China, “because otherwise, you could never do business with them, and they want to do business very much.” He also told reporters aboard Air Force One that U.S. officials were discussing a variety of issues with their Chinese counterparts. China’s government has repeatedly said that it is not currently negotiating a trade deal with the U.S., and that Trump and Chinese President Xi Jinping have not been in direct contact. Meanwhile, the U.S. Federal Reserve will meet on Wednesday, and is likely to maintain interest rates. “The labor report leaves little doubt that the FOMC will keep rates on hold this week, and the bar for cutting is now even higher for June,” said JPMorgan head of U.S. economics Michael Feroli. “In a period of high uncertainty, with two-sided risks to the dual mandate, the Fed Committee will prefer to remain patien
Markets
Oil prices fall as OPEC boosts June output
Oil prices have fallen dramatically, after OPEC+ said the bloc would increase oil output for a second consecutive month. Brent crude was down 3.62% at 3:05 pm (AEST) at US$59.07 per barrel. West Texas Intermediate crude has dropped by 3.95% to $55.99 per barrel. OPEC+ agreed yesterday to increase production by an additional 411,000 barrels per day in June. The bloc said its decision was “in view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025.” OPEC+ nations had previously agreed to boost production in May, and are reportedly seeking to produce as much as 2.2 million barrels per day by November. Saudi officials spearheaded production boosts to enforce Iraq and Kazakhstan's oil quota compliance, according to Reuters. Barclays has lowered its Brent oil price forecast to US$66 per barrel for 2025, down $4 from its earlier projections, due to production increases. “Tariff-related developments have certainly been a drag but the OPEC+ pivot has also been a significant driver of the move lower
Markets
Asia-Pacific markets make mixed start to new week
Asia-Pacific equity markets opened mixed on Monday with Australia down and Japan and South Korea up. As of 11:45 am AEST (1:25 am GMT), Australia’s S&P/ASX 200 was 0.6% lower, but Japan’s Nikkei 225 and South Korea’s Kospi 200 were 1.1% and 0.1% higher respectively. A higher close on Wall Street had been expected to support the ASX benchmark, but weakness in United States stock futures on Sunday night (Monday AEST) had more influence on prices. A leading Australian jobs survey showed a slight improvement in positions available with the ANZ-Indeed Job Advertisements rising 0.5% in April compared with March but falling 5.1% over the past 12 months. Global sentiment around equities had been buoyed by gains on Wall Street on Friday (Saturday AEST) when the Dow Jones Industrial Average rose 1.39%, the S&P 500 put on 1.47% and the Nasdaq Composite climbed 1.51%. However the mood was dampened in subsequent U.S. stock futures trading with the Dow and S&P contracts falling 0.7% each and the Nasdaq Composite 0.8% on Sunday. Commodities were lower with brent crude oil prices falling 3.5% to US$59.14 per barrel and spot gold losing 0.8% to US$3,266.37 per ounce. Markets in China and Hong Kong were closed for public holida
Markets
Futures point to US equities ending loss-erasing rally
Trading in United States stocks may start on a more subdued note this week, ending a winning streak that erased losses caused by President Donald Trump’s trade war. This outlook was flagged by trading in U.S. stock futures on Sunday night (Monday AEST) with the S&P 500 and Dow Jones Industrial Average contracts down about 0.4% each and the Nasdaq-100 contract 0.5% lower. If confirmed on the physical market, this would end the S&P’s longest consecutive gain in 20 years. Investors on Friday (Saturday AEST) were cheered by expectations of an easing of trade tensions between the U.S. and China as Beijing indicated an interest in negotiations, economic data which lowered concerns about an American economic downturn, and corporate results. “We do see this run up as being more based on excitement than actual, solid — not just fundamentals, but an actual change,” Dunham & Associates Investment Counsel Chief Investment Officer Ryan Dykmans was quoted as saying. The market direction this week will be set by factors including the Federal Reserve’s policy meeting starting on Tuesday, with the chances of an interest rate cut seen as low, corporate earnings announcements and trade updates.

Markets
ASX set to track resurgent Wall Street higher
Australian shares are expected to open higher on Monday following a stronger finish on Wall Street on Friday (Saturday AEST). The S&P/ASX 200 June share price index futures contract was quoted 32 points (0.38%) above the previous settlement at 8,280 when it last traded on Friday, paving the way for the Australian equities winning streak to be extended to an eighth day. The direction was set by the performance of New York stocks which closed higher on Friday, buoyed by positive economic data, strong corporate earnings and a possible easing of trade tensions with China. The Dow Jones Industrial Average rose 1.39%, the S&P 500 1.47% and the Nasdaq Composite 1.51%, wrapping up a second consecutive week of gains with the S&P continuing its longest winning streak in 20 years. Moreover, the advances in these indices more than offset previous losses sparked by United States President Donald Trump’s tariffs on imports, particularly from China, which has used a more conciliatory approach to potential trade talks. The Australian sharemarket closed higher for a seventh consecutive session on Friday, reaching a two-month high as the S&P/ASX 200 added 1.1% to 8,238.0 points. Among the stocks to watch today are Westpac Banking
Markets
FX Week Ahead: Euro steadies as US dollar weak on data
Tariffs continue to create market volatility as industries across the globe await the results of United States-China trade talks that could come at any time. Encouragingly, late last week China announced - for the first time publicly - it was open to talks, which boosted markets and sentiment that a deal would be done sooner rather than later. Meanwhile, weak US economic data held back USD gains, even as global trade tensions eased and markets corrected. The CB Consumer Confidence Index dropped to 86 in April - its lowest level since October 2021 - and the preliminary US Q1 GDP estimate disappointed too, showing a 0.3% annualised contraction instead of the expected 0.4% growth - a sharp decline from the previous quarter’s 2.4% expansion. In tandem, the Personal Consumption Expenditures (PCE) Price Index edged 0.2% lower in March to 2.3% - missing an expected 2.2% drop. April US Nonfarm Payrolls rose by 177,000, exceeding forecasts of 130,000, though they came short of revised March figures of 185,000. After news of the data, U.S. President Donald Trump demanded that the Fed lower rates via a post on his Truth Social Network.Credit: Truth SocialEuro cautiousThe euro faced mild selling pressure for the second week in
Markets
Losses erased as Wall Street extends winning streak
United States stocks closed higher on Friday (Saturday AEST), buoyed by positive economic data, strong corporate earnings and a possible easing of trade tensions with China. The Dow Jones Industrial Average rose 564.47 points (1.39%) to 41,317.43 points, the S&P 500 put on 82.54 points (1.47%) to 5,686.68 and the Nasdaq Composite climbed 266.99 points (1.51%) to 17,977.73. This brought the week’s gains by the three benchmarks to 2.9%, 3.0% and 3.4% respectively, cementing a second successive week of higher prices on Wall Street and producing the longest S&P winning streak in 20 years. They also helped to reverse losses over the month caused by U.S. President Donald Trump’s ‘Liberation Day’ tariff announcements on 2 April. The market was cheered by news that 177,000 jobs were created in April, which was more than forecast, and the unemployment rate was unchanged at 4.2%, which eased worries about an economic slowdown. These concerns were raised by a Commerce Department report which showed a contraction in U.S. gross domestic product for the first time in three years. "I do think what today is saying is that the economy is a lot stronger than people thought and a lot more resilient in the face of all of these t
Markets
ASX 200 hits fresh 2mnth high on US-China trade hopes
The Australian sharemarket closed higher for a seventh consecutive session on Friday, lifting to a two-month high as optimism over potential trade talks between China and the United States buoyed investor sentiment. The S&P/ASX 200 climbed 92.4 points or 1.1% to 8,238.0, notching a 3.3% weekly gain. Ten of the index’s 11 sectors ended in positive territory, led by strong performances in energy and healthcare. Investor optimism follows comments from China’s Commerce Ministry that Beijing is considering trade discussions with Washington. The news sparked an uptick in oil prices and energy stocks, with Woodside Energy rising 2% and Santos advancing 2.3%. Healthcare shares also lifted the market. CSL gained 2.1%, Sigma Healthcare gained 3%, ResMed lifted 1% and Sonic Healthcare gained 1.2%. Financials rose 1.3% overall, with Commonwealth Bank lifting 1.4% to new record highs. Westpac gained 1.9%, National Australia Bank added 1.4%, and Macquarie Group gained 2.6%. Tech stocks outperformed despite a negative earnings outlook from Amazon and Apple in the U.S. Xero added 0.4%, and TechnologyOne gained 1.4%, while WiseTech Global added 1.1% after confirming it is exploring a potential acquisition of U.S.-listed sup