EQUITIES
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 37,983.24 | -475.84 | -1.24% |
| S&P 500 | 5,123.41 | -75.65 | -1.46% |
| Nasdaq | 16,175.09 | -267.10 | -1.62% |
| VIX | 17.31 | 2.40 | 16.10% |
| Gold | $2,372.90 | -$1.20 | -0.05% |
| Oil | $85.60 | -$0.06 | -0.07% |
US MARKET
Friday saw a rough trading day in the US markets, with the Dow Jones Industrial Average dropping 476 points or 1.2%, while the S&P 500 and Nasdaq declined by 1.5% and 1.6%, respectively.
Treasury yields, previously rising due to inflation concerns, fell as investors turned to safe-haven bonds, with the yield on 10-year U.S. Treasury notes dropping to 4.499%.
JPMorgan Chase, Citigroup, and Wells Fargo delivered underwhelming forecasts for net interest income, leading to declines in their shares by 6.5%, 1.7%, and 0.4%, respectively.
Additionally, the University of Michigan’s consumer-confidence reading dipped, while inflation expectations rose, fueling worries about the Federal Reserve’s rate policies.
Geopolitical tensions in the Middle East heightened, with reports of potential attacks from Iran on Israel and the US deploying warships to the region.
Gold prices surged to a new record high amid the uncertainty.
Despite the unsettling news, investor sentiment could improve with potentially strong earnings as the quarterly reporting season progresses next week.
LOCAL MARKET
The local share market closed lower as traders adjusted to the likelihood of delayed interest rate cuts, although gold miners maintained their strength.
The S&P/ASX200 fell 25.5 points or 0.33% to 7,788.1, and the All Ordinaries dropped 23.9 points or 0.3% to 8,050.2. For the week, the ASX200 rose 0.2%, rebounding from a 1.6% decline the previous week.
Higher-than-expected US inflation and strong non-farm payrolls data caused markets to reassess the timing of Federal Reserve rate cuts. Economists now predict rate cuts in July or September instead of June. The Australian rate cut is not fully priced in until next February.
Most ASX sectors finished lower, with consumer staples the biggest loser, dropping 0.9%. The mining sector fell 0.4%, but gold miners saw gains as the price of gold continued to rise.
In the utility sector, Origin rose 2.4% after agreeing to buy a wind and energy storage project. Genex Power rose 6% after agreeing to be bought by Japan’s J-Power.
The Big Four banks mostly declined, with The Star and Cettire also experiencing losses despite strong sales announcements.
The Australian dollar was buying 65.14 US cents.
On the NZX, the NZX 50 lost 2.99 points or 0.03% to 11,931.32. In Japan, the Nikkei gained 80.92 points or 0.20% at the time of writing, closing at 39,523.55.