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West Australian
22-05-2025
- Business
- West Australian
ASX slips after debt fears prompt Wall Street sell-off
The Australian share market is trading lower after concerns about US sovereign debt prompted a Wall Street sell-off overnight. The S&P/ASX200 fell 42.6 points, or 0.51 per cent by midday, to 8,344.2, while the broader All Ordinaries lost 42.6 points, or 0.49 per cent, to 8.569.5. The local bourse pared some losses after slipping 0.9 per cent in early trade. Major US indexes the S&P500 (-1.61 per cent), the Dow Jones (-1.91 per cent) and the tech-heavy Nasdaq (1.41 per cent) all fell, after a weak US Treasury auction pushed bond yields higher and weighed on US equities and the greenback. The United States' spiralling debt has been in focus this week after a third sovereign credit downgrade and as US President Donald Trump attempts to pass a tax bill that would raise the US debt ceiling. "US stocks fell sharply overnight as the rumblings grew louder in the increasingly cranky bond market," IG Markets analyst Tony Sycamore said. "A disappointing $US16 billion auction of 20-year Treasuries, the first since Moody's downgrade, led to a surge in US yields." Only two local sectors were trading higher by lunchtime, with energy stocks down 1.4 per cent and leading losses as oil prices ticked lower. Financials fell 0.7 per cent as the Commonwealth Bank retreated 1.5 per cent after hitting a new peak of $176.46 on Wednesday. ANZ was the only big four bank trading higher, up 0.4 per cent, as NAB fell 1.3 per cent and Westpac slipped 0.3 per cent. Gold pusher 0.6 per cent higher to $US3,340 ($A5,195) as risk-off sentiment pushed investors toward the safe haven. Materials stocks grinded 0.2 per cent higher thanks to gold miners and explorers, as large cap miners BHP, Rio TInto and Fortescue all lost ground. The world's largest cryptocurrency Bitcoin rallied to an all-time high above $US110,700 ($A171,780), thanks in part to a stablecoin (fiat currency-pegged token) bill making its way through US congress. Bitcoin's divergence from risk assets, particularly US tech stocks is being closely watched for signs it behaves more like a genuine store of value or hedge to fiat currency, market analyst Kyle Rodda said. Telecommunications services was one of three sectors to gain ground, up 0.1 per cent as Telstra pushed 0.5 per cent higher to $4.72. A strong mobile performance from competitor Optus helped it carve out a 55 per cent increase in earnings before interest and tax for the year to March 31, along with 238,000 new customers. Shares in Optus' Singapore-listed owner Singtel were up 2.3 per cent as the group's total underlying profit rose 9 per cent. Insurance Australia Group rallied more than two per cent to $8.76 after the Australian Competition and Consumer Commission rubber stamped its takeover of RACQ Insurance. Suncorp and QBE also pushed one per cent higher, the insurers helping to soften losses in the financial services sector. The Australian dollar is buying 64.29 US cents down from 64.52 US cents at Wednesday's ASX close.
Perth Now
22-05-2025
- Business
- Perth Now
ASX slips after debt fears prompt Wall Street sell-off
The Australian share market is trading lower after concerns about US sovereign debt prompted a Wall Street sell-off overnight. The S&P/ASX200 fell 42.6 points, or 0.51 per cent by midday, to 8,344.2, while the broader All Ordinaries lost 42.6 points, or 0.49 per cent, to 8.569.5. The local bourse pared some losses after slipping 0.9 per cent in early trade. Major US indexes the S&P500 (-1.61 per cent), the Dow Jones (-1.91 per cent) and the tech-heavy Nasdaq (1.41 per cent) all fell, after a weak US Treasury auction pushed bond yields higher and weighed on US equities and the greenback. The United States' spiralling debt has been in focus this week after a third sovereign credit downgrade and as US President Donald Trump attempts to pass a tax bill that would raise the US debt ceiling. "US stocks fell sharply overnight as the rumblings grew louder in the increasingly cranky bond market," IG Markets analyst Tony Sycamore said. "A disappointing $US16 billion auction of 20-year Treasuries, the first since Moody's downgrade, led to a surge in US yields." Only two local sectors were trading higher by lunchtime, with energy stocks down 1.4 per cent and leading losses as oil prices ticked lower. Financials fell 0.7 per cent as the Commonwealth Bank retreated 1.5 per cent after hitting a new peak of $176.46 on Wednesday. ANZ was the only big four bank trading higher, up 0.4 per cent, as NAB fell 1.3 per cent and Westpac slipped 0.3 per cent. Gold pusher 0.6 per cent higher to $US3,340 ($A5,195) as risk-off sentiment pushed investors toward the safe haven. Materials stocks grinded 0.2 per cent higher thanks to gold miners and explorers, as large cap miners BHP, Rio TInto and Fortescue all lost ground. The world's largest cryptocurrency Bitcoin rallied to an all-time high above $US110,700 ($A171,780), thanks in part to a stablecoin (fiat currency-pegged token) bill making its way through US congress. Bitcoin's divergence from risk assets, particularly US tech stocks is being closely watched for signs it behaves more like a genuine store of value or hedge to fiat currency, market analyst Kyle Rodda said. Telecommunications services was one of three sectors to gain ground, up 0.1 per cent as Telstra pushed 0.5 per cent higher to $4.72. A strong mobile performance from competitor Optus helped it carve out a 55 per cent increase in earnings before interest and tax for the year to March 31, along with 238,000 new customers. Shares in Optus' Singapore-listed owner Singtel were up 2.3 per cent as the group's total underlying profit rose 9 per cent. Insurance Australia Group rallied more than two per cent to $8.76 after the Australian Competition and Consumer Commission rubber stamped its takeover of RACQ Insurance. Suncorp and QBE also pushed one per cent higher, the insurers helping to soften losses in the financial services sector. The Australian dollar is buying 64.29 US cents down from 64.52 US cents at Wednesday's ASX close.
Free Malaysia Today
16-05-2025
- Business
- Free Malaysia Today
Asian markets stagger into weekend as trade rally runs out of legs
Tokyo's market retreated after the release of figures showing Japan's economy saw its first quarterly contraction in a year. (AP pic) HONG KONG : Markets limped into the weekend as investors consolidated gains fed by the China-US trade war hiatus, having enjoyed one of their best weeks since Donald Trump unloaded his 'Liberation Day' tariff bazooka last month. The dollar edged down after data showed US wholesale prices rose less than expected last month and retail sales were flat, following below-forecast consumer inflation figures, providing hope the Federal Reserve could cut interest rates this year. Oil prices inched up, though they remain subdued after sinking Thursday on hopes for a breakthrough in Iran nuclear talks after Trump said progress had been made on a deal. Investors are now awaiting signals from the US president on the progress of talks with his country's trading partners as governments line up to strike deals to avoid his steep levies. However, analysts warn that the euphoria over Beijing and Washington's detente, which saw them slash tit-for-tat tariffs for 90 days to allow for talks, has likely given way to the fact that levies are still elevated and pose a threat to economic growth. 'Even if more trade deals are announced, it is still the case that tariffs on goods entering the US will be much higher than anyone dared to contemplate,' said IG chief market analyst Chris Beauchamp. 'This should result in a not insignificant hit to earnings, though the impact will only start to become clear in future earnings reports. 'The question for all investors is, have markets already priced in enough bad news following their big losses in the first half of April to avoid further falls later in the year?' The head of US retail titan Walmart highlighted the threat to consumers as he warned of price increases caused by Trump's tariffs on imports from around the world. CEO Doug McMillon welcomed the dialling down of tensions with China but said the levies remained too high for his firm to absorb. AdChoices ADVERTISING 'We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels, we aren't able to absorb all the pressure,' he told analysts after reporting a solid quarter of earnings. Asian markets dropped in morning trade. Tokyo retreated after the release of figures showing Japan's economy saw its first quarterly contraction for a year from January to March. Hong Kong also fell, with e-commerce titan Alibaba shedding more than 4% after reporting a disappointing rise in first-quarter revenue as Chinese consumer spending remained sluggish. Other tech firms were also lower, with e-commerce rival down along with Tencent and Meituan. Shanghai, Singapore, Wellington and Manila were all lower but Sydney, Seoul and Taipei rose.
Perth Now
09-05-2025
- Business
- Perth Now
Aussie shares edge higher as US inks first tariff deal
Australian shares are edging higher after White House officials inked their first tariff deal, seeding hopes tensions could de-escalate between China and the US. The S&P/ASX200 rose 33.7 points, or 0.41 per cent, to 8,225.4, as the broader All Ordinaries gained 33.5 points, or 0.4 per cent, to 8,451.6. The tariff agreement between the UK and US helped push Wall Street higher overnight, with the Dow Jones and S&P500 both lifting more than 0.5 per cent, while the tech-heavy Nasdaq rallied 1.07 per cent. Britain's average duties on US products will fall to 1.8 per cent from 5.1 per cent, but a 10 per cent tariff on US-bound goods will remain, excepting a certain quota of UK steel. "While (it's) a good start, the trade deal that really matters for Australia is the one between the US and China, with talks set to start this weekend in Switzerland," IG Markets analyst Tony Sycamore said. "It would be a net positive if US-China trade tensions were to ease, but it is unlikely that any deal will see US tariffs on Chinese imports fall much below 50 per cent at this point of time." Seven of 11 local sectors were trading higher by lunchtime, led by a 1.8 per cent IT stock rally on the back of an overnight surge in US tech stocks. Recent Nasdaq-100 company earnings were up more than 22 per cent year-on-year, outshining S&P500 earnings, which grew 12.3 per cent. Local data centre NEXTDC was up more than three per cent on Friday, and has surged more than 44 per cent since April 7. Financials were lifting the bourse higher, up 1.1 per cent with ANZ the only big four bank in the red a day after its mixed results announcement. Investment and financial services giant Macquarie rallied 4.4 per cent to $204.45, after posting a better-than-expected $3.7 billion profit in the year to April. Energy stocks jumped 1.2 per cent, with Woodside and Santos both up roughly two per cent, as oil prices pushed higher. Brent crude futures were up three per cent since Thursday morning to trade at $US62.70 a barrel as the US sanctioned two China oil refiners for using Iranian oil. Materials were under pressure, down 0.8 per cent, with iron ore giants BHP and Rio Tinto down 1.1 per cent and 0.7 per cent as investor caution weighed ahead of US-China trade talks. Gold miners were trading lower as the precious metal eased below $US3300 an ounce, the safe haven taking a breather for now. Conversely, investors' risk-on appetite was on-show as Bitcoin broke above US$100,000 ($157,000) for the first time since January to trade at $US103,070. The Australian dollar is buying 63.87 US cents, down from 64.10 US cents as the greenback lifted on the US-UK tariff agreement and hopes of calmer waters on the US trade front.
Perth Now
01-05-2025
- Business
- Perth Now
Australian shares edge lower as tariffs bite China, US
Australian equities are edging tentatively higher, as concerns build around the growth prospects of the world's two largest economies. By midday, the S&P/ASX200 was up 15.6 points, or 0.19 per cent, to 8142.3, as the All Ordinaries gained 18.8 points, or 0.22 per cent, to 8359.3. The tentative start came after a volatile Wall Street session where a late rally pushed the three major indexes slightly higher after disappointing US GDP data. The US economy shrank for the first quarter in three years, by 0.3 per cent, which analysts attributed to a spike in imports as companies tried to front-run President Donald Trump's tariffs. Manufacturing data from China on Wednesday showed its steepest decline since December 2023, a sign of the early impacts of US tariffs. "This saw the price of iron ore fall 1.33 per cent to $US97.15 in Asia, a move that has been added to overnight," IG Markets analyst Tony Sycamore said. "Combined, these moves in key commodities have resulted in BHP's (New York listing) falling 2.16 per cent overnight, indicating a tough day ahead for the big miners." Materials stocks were weighing on the bourse early in the session, down 0.9 per cent as BHP slipped 1.4 per cent, and Rio Tinto was down 1.1 per cent as its AGM kicked off this morning. Three of 11 local sectors were in the red, with energy the worst performer and down 1.1 per cent as demand concerns and a potential OPEC+ supply hike again kept crude futures at four-year lows. Brent crude is trading at $61.05, while its US, West Texas Intermediate equivalent contract is fetching $US58.59. The big four banks were mixed, with CBA up 0.6 per cent while ANZ, NAB and Westpac were down by less than one per cent as the financial sector eked a 0.1 per cent gain. IT stocks outperformed the bourse, up more than three per cent, helped by rallies in Wisetech (+5.5 per cent) and data centre company NEXTDC, up 5.6 per cent. Consumer staples were up one per cent, as Woolworths rose 0.8 per cent higher on mixed third-quarter results. Its total sales rose more than three per cent on the equivalent 2024 quarter to $3.2 billion, thanks largely to a 15.7 per cent surge in eCommerce sales. The group's Big W sales slipped 1.5 per cent, sparking a first half profit downgrade to a loss of $70 million before interest and tax. Real estate stocks also performed well, up 1.8 per cent as easing building costs and cooling underlying inflation narrowed bets of an interest rate cut at the Reserve Bank's May meeting. Goodman Group was up four per cent to $31.19 as Charter Hall gained 2.5 per cent. The Australian dollar has been consolidating around the 64 US cent level since April 21 to buy 64.12 US cents, on par with 64.10 US cents, its level at Wednesday at 5pm.
