Join our daily newsletter At The Bell to receive exclusive market insights
It was a mixed week for the bourse down under.
While Trump’s move to freeze tariffs on China for 90 days – and suggestions the final tariff rate will look more like 30% as opposed to 145% – markets were calmer this week.
Because of that, gold fell, but not because of demand perceptions – rather, the safe haven asset was housing a lot of nervousness, and some of that nervous capital flipped back to bullish.
A lot of it went into Wall Street equities.
ASX at 3mth high
In the same wave of enthusiasm, the ASX itself hit a three month high on Friday.
While we’re not close to the 8,500pts mark, we are where we were in February right ahead of the ATH, and, well above where we were post-Liberation Day.
Still, the AUD remains below 65 US cents. Worth noting is that US bond markets weren’t as excited this week as equities were following what appears to be China and the US making up and becoming friends again. Sort of.
So what else happened this week down under?
Australia watching RBA
The big one is that jobs figures came in higher than expected with 89,000 new roles being added, versus expectations around 20,000. While that appears to be a big jump, as a percentage, unemployment remains at 4.1%. So no drastic change one way or the other.
On the back of that data, some investors have been less confident the RBA will cut rates at its meeting next week for the second time this year. While in my view that could be an overreaction – the unemployment rate has been flat for a good while now – some may be vindicated should the central bank decide to pause.
But this finance journalist at least has a good feeling with TMI below 3%, a cut is still on the cards.
CBA back in critical light
Commonwealth bank, too, will be closely watched as that stock has basically been the same as gold in recent history – both in terms of ceaselessly upwards performance, and, a larger perception of the stock being a safe haven itself.
Analysts have been calculating that CBA is overvalued for over a year now, and that hasn’t gone anywhere with fresh criticism coming out this week.
With the geopolitical situation apparently more calm than it was a month ago, it will be interesting to see how far CBA pulls back. Or if it does at all.
Looking at stocks: Botanix was slammed on Monday by Trump’s news he will cut US drug prices; Life360 became an earnings season darling this week holding above $30.00/sh; CBA profits were up +6% even in a cost of living crisis; uranium miners fell on Friday as profit takers moved in; Webjet has rejected BHG’s takeover offer; Amplia soared +40% on news its chemo combo for pancreatic yielded superior outcomes; the market shrugged at Mesoblast’s latest FDA win, and more.
Check out HotCopper’s news section for more!
Australian Equities
Elixir Energy, now under Stuart Nicholls, reveal new strategy: QLD, QLD, QLD
Biotech stocks slammed on Monday as Trump vows to cut US drug prices
CBA scrutiny piques once again as analysts still say Commonwealth price irrational
International Equities
Wall Street futures kick off week in the green as US-China trade talks spur hope
Indian stocks lead Asia on Monday as Pakistani ceasefire deal also hits
Norway’s wealth fund divests from Mexican Pemex over corruption risk
Sony forecasts flat profits for CY2025 on tariff impact
Australian Economy
Liberation Day impacts on consumer sentiment pare in latest Oz data
Australian jobs data, with more roles than expected, leaves rate cut bulls less certain
International Economies
India reportedly thinking about placing duties on the US per WTO
Chinese deflation continues, now exacerbated by trade war fears
Commodities
Gold declines as US China tariff wind-back rattles demand for safe haven asset
Chinese iron ore prices hit 2wk high on US-China 90d reprieve, but nothing dramatic
Cobalt market to hit deficit in early 2030’s: Cobalt Institute
Geopolitics
Trump’s Middle East tour kicks off with US$600B Saudi injection; Syrian sanctions wiped
One week after Houthi ceasefire, ships still marking ‘No Link Israel’ in Red Sea
NVIDIA to send AI-capable microchips to Saudi wealth fund owned AI startup
Regulatory, Odds & Ends
The ASX is looking at cutting a number of jobs internally: Reuters
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
