“Much ado about nothing” is how I’d characterise the week that was. We got some Australian GDP data – it came in weak, but we kind of already knew to expect that, that was why the RBA cut rates.
(The ASX200 has been trying to hit a new record high this week but didn’t quite get there.)
Trump and Elon Musk had a giant falling out with the kind of cattiness that only Pride Month could produce. I had long been telling my friends we’d see the relationship fall apart in Q2 of the calendar year, so I for one feel vindicated.
What else happened this week?
Virgin IPO; Gold markets confused
Virgin finally – finally – kicked off its IPO to re-list on the ASX, again, after many false starts. At least something exciting is happening on the ASX, but then again, it’s only Virgin. Again.
Perhaps most telling of global macro this week is that gold went up even after reports came out lateweek pointing to a fresh restart of negotiations between Trump and China.
Really, that shouldn’t make gold go up.
Or at least, that was the logic when China and the US first started negotiating. One is left to wonder if there have actually been any negotiations at all, and maybe that’s the risk being priced into gold.
More uncertainty; ASX eyes record
Or maybe the market is just entirely confused, or divided, on what the hell is happening. It feels like April 2 all over again, just without the insane price action.
(Talking of insane prices, Microsoft is once again the world’s most valuable company by market cap, or at least, that was the case early afternoon Friday Perth time.)
The ASX200 came close to scraping its closing record high of 8,555pts this week on more than one occasion. Still, around six weeks on, we’re back to where we were pre “Liberation Day,” at least.
Oh, one final note: as Elon leaves the White House, Trump wants to launch a Bitcoin ETF on the NYSE Arca, kind of like a TSXV, through his floundering media company. Make of that what you will.
Australian Equities
- Droneshield climbs back above $1.50/sh as defence thematic revives
- Don’t see that everyday: BluGlass wins defence contract with India
- Proteomics claims to have devised a throat cancer detection blood test
International Equities
- Tesla sells off as Musk-Trump fallout becomes catty; loses A$235B of value
- Microsoft once again the world’s biggest company by marketcap
- Trump’s Truth Social media company wants to launch a Bitcoin ETF
Australian Economy
- Oz Household Saving Ratio jumps to 5.2% in Q1 of CY2025
- CY2025 Q1 GDP comes in soft at +0.2%, unsurprising after RBA commentary
- Household spending flat MoM in April; up +3.7% YoY (vs April 2024)
International Economies
- EU YoY core collective inflation rate drops to 2.3%
- Bank of Canada keeps rates on hold
- But the European Central Bank cuts by 25bps
Geopolitics
Commodities
- Silver hits a 13Y high as gold traders appear to rotate into silver
- Uranium appears to be heading back to sub US$70/lb prices
- A market torn: gold climbs even as reports signal US-China negotiation restart
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