The ASX opened sharply lower following the U.S tech and auto selloff overnight after President Trump once again threw markets into a spin, re-introducing tariffs on automaker parts and vehicles.
The Budget released overnight had a typical pre-election vibe with higher spending and higher deficits underpinning front loaded initiatives to win votes. No signs of longer-term structural reforms around productivity nor any progress on reducing Government spending, with gross debt expected to continue to increase sharply ahead, from $940bn (or 33.7% of GDP) in 24/25; to $1,022bn (or 35.5% of GDP) in 25/26.
In line with President Trump announcing a potential relaxing of tariff policies, we might have expected China-exposed stocks to move up today. Instead, the ASX followed the tech-focused rally in the U.S overnight.
The market opened down ~20pts before U.S futures kicked in mid-morning spurring a small rally to ~7935 before sitting in a 10-point trading range for the remainder of the day. A negative reaction to the blockbuster acquisition by James Hardie (JHX) highlighted a continued aversion to the U.S early on, though our market was quickly buoyed by a flight to financials, with banks enjoying a good start to the week.
Fridays have generally been weak on the ASX with traders showing little appetite to hold stocks over the weekend given Trump’s propensity to make headlines, however, this week was characterized by fewer headlines from the Whitehouse and stocks bounced back as a result, with the main board up 1.8% over the 5 sessions with all sectors finishing in the green.
A very solid bounce back on the ASX today with ~85% of the main board finishing higher. Risk was back on with technology + market linked stocks leading the way, though resources lagged.
The worst of the session was seen early with the market attracting some bargain hunters as the day progressed despite a mixed bag in term of corporate updates. WiseTech (WTC) and Mineral Resources (MIN) in focus for the wrong reasons, while Myer (MYR) was also volatile after they released 1H25 results.
A solid start to trade this morning with the main board rallying back above 7900, however, sellers kicked into gear from just before midday with the index finishing ~60pts below the morning highs.
The ASX closed in positive territory for a second consecutive trading session, not seen since the market all-time high of 8615 was set back on February 14. The market opened strongly and didn’t look back as news that China would implement stimulus to support its share market and property market, as well as intent to boost real incomes, provided a broad boost to sentiment. Promising Chinese consumer data was out mid-morning, sustaining the move up through to the close.
With futures pointing down -12pts prior to the session following weak US markets, it looked all but certain we were in for another negative day but fresh all-time highs for gold and a bounce in iron ore overnight provided a much needed boost to the miners.
The Budget released overnight had a typical pre-election vibe with higher spending and higher deficits underpinning front loaded initiatives to win votes. No signs of longer-term structural reforms around productivity nor any progress on reducing Government spending, with gross debt expected to continue to increase sharply ahead, from $940bn (or 33.7% of GDP) in 24/25; to $1,022bn (or 35.5% of GDP) in 25/26.
In line with President Trump announcing a potential relaxing of tariff policies, we might have expected China-exposed stocks to move up today. Instead, the ASX followed the tech-focused rally in the U.S overnight.
The market opened down ~20pts before U.S futures kicked in mid-morning spurring a small rally to ~7935 before sitting in a 10-point trading range for the remainder of the day. A negative reaction to the blockbuster acquisition by James Hardie (JHX) highlighted a continued aversion to the U.S early on, though our market was quickly buoyed by a flight to financials, with banks enjoying a good start to the week.
Fridays have generally been weak on the ASX with traders showing little appetite to hold stocks over the weekend given Trump’s propensity to make headlines, however, this week was characterized by fewer headlines from the Whitehouse and stocks bounced back as a result, with the main board up 1.8% over the 5 sessions with all sectors finishing in the green.
A very solid bounce back on the ASX today with ~85% of the main board finishing higher. Risk was back on with technology + market linked stocks leading the way, though resources lagged.
The worst of the session was seen early with the market attracting some bargain hunters as the day progressed despite a mixed bag in term of corporate updates. WiseTech (WTC) and Mineral Resources (MIN) in focus for the wrong reasons, while Myer (MYR) was also volatile after they released 1H25 results.
A solid start to trade this morning with the main board rallying back above 7900, however, sellers kicked into gear from just before midday with the index finishing ~60pts below the morning highs.
The ASX closed in positive territory for a second consecutive trading session, not seen since the market all-time high of 8615 was set back on February 14. The market opened strongly and didn’t look back as news that China would implement stimulus to support its share market and property market, as well as intent to boost real incomes, provided a broad boost to sentiment. Promising Chinese consumer data was out mid-morning, sustaining the move up through to the close.
With futures pointing down -12pts prior to the session following weak US markets, it looked all but certain we were in for another negative day but fresh all-time highs for gold and a bounce in iron ore overnight provided a much needed boost to the miners.
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