AUS
NZ
UK
CA
USA
IND
Highlights:
- ASX 200 futures indicate a weaker opening following declines in major US tech stocks.
- Tariff anxieties rise as the US considers auto and copper tariffs.
- Healius Limited (ASX:HLS) announces a substantial special dividend after Lumus divestment.
The Australian share market appears set for a subdued start, with ASX 200 futures down 37 points (-0.46%) as of 8:30 am AEDT. This cautious sentiment reflects overnight declines in major US benchmarks, particularly influenced by significant drops among key technology players such as Nvidia (NASDAQ:NVDA), which fell 5.7%, and Tesla (NASDAQ:TSLA), down 5.5%. Concerns about impending tariff announcements by former US President Donald Trump on autos and copper have further dampened investor sentiment globally.
In the US, the equal-weight S&P 500 notably outperformed its benchmark index by approximately 90 basis points, driven by resilience in defensive sectors like Staples, Utilities, Real Estate, and Resources. Despite this, broader markets felt pressure from trade tensions and speculation surrounding tariff policies. Barclays reduced its S&P 500 forecast significantly from 6,600 to 5,900, citing potential impacts from new tariffs on corporate earnings. Similarly, UBS analysts projected a further potential downside of 8% for the S&P 500 to 5,300, highlighting vulnerabilities in employment trends, consumer spending, and confidence.
In corporate developments, Nvidia faces challenges as potential new Chinese regulations could result in an annual financial impact of approximately US$17 billion related to stricter energy efficiency rules on advanced semiconductor chips. Concurrently, Microsoft (NASDAQ:MSFT) halted several data center expansions in the US and Europe, citing an oversupply of AI computing infrastructure.
Elsewhere, OpenAI anticipates robust revenue growth, projecting a surge to $12.7 billion this year and forecasting approximately $30 billion by 2026, reflecting heightened demand for AI-driven technologies. US investment banks, meanwhile, brace for potential job cuts amid declining dealmaking activities triggered by macroeconomic uncertainties.
BYD (OTC:BYDDY) plans ambitious growth with a target of over 800,000 vehicle sales globally by 2025, employing local assembly operations to circumvent potential tariff impacts. On the geopolitical front, the US is preparing tariffs on copper imports ahead of schedule, possibly within weeks, prompting European Union retaliatory considerations and potential economic impacts on nations including the UK.
Central banks remain cautious, with the Bank of Japan signaling openness to further rate increases contingent on sustained economic improvement. Tariff developments also impact Canada, which has frozen rebates for Tesla vehicles (NASDAQ:TSLA) and banned future rebate programs due to US tariff policies.
Economic data offered some positive signs, as US durable goods orders unexpectedly rose by 0.9% in February, contrary to expectations of a decline. UK inflation moderated to 2.8%, below forecasts, reinforcing arguments for potential interest rate cuts. In Australia, underlying inflation softened to 2.4% in February, its lowest in over three years, although analysts anticipate a rise once electricity subsidies expire.
In local market updates, Healius Limited (ASX:HLS) is in the spotlight after announcing a special dividend of 41.3 cents per share—approximately a 31% yield—following the successful sale of its Lumus Imaging business. Additionally, Healius reported a year-to-date revenue increase of 6.2%, guiding FY25 capital expenditure lower than consensus estimates.
Further notable developments include AustralianSuper divesting its entire ~$580 million stake in Wisetech Global (ASX:WTC) due to governance concerns, while Block Inc. (ASX:SQ2) plans workforce reductions of approximately 8%. COG Financial Services (ASX:COG) experienced significant share sales by notable holders, Cuscal (ASX:CCL) reaffirmed its earnings guidance, and Gold Road Resources (ASX:GOR) shareholders are actively discussing a takeover bid from Gold Fields valued at $3.3 billion.
Meanwhile, The Lottery Corporation (ASX:TLC) explores expansion possibilities into New Zealand, and The Reject Shop (ASX:TRS) has agreed to an acquisition by Canadian retailer Dollarama at a premium exceeding 112% of its recent closing price.
Today’s session will see particular attention directed toward sectors such as Copper Miners, Semiconductors, and Uranium, following overnight declines exceeding 2%. Technology and Fintech sectors could face additional headwinds, reflecting global sentiment. Investors may observe if defensive sectors like Staples, Utilities, and Real Estate offer resilience amidst prevailing volatility.
