AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX 200 futures indicate an upward trend at the open, following Wall Street’s positive close.
- Energy, Utilities, and Materials sectors showed resilience despite a broader market pullback.
- Investors focus on US retail sales data and the Federal Reserve’s interest rate decision.
The Australian share market is expected to start the week on a positive note, with ASX 200 futures pointing to an increase at the open. This follows a strong finish on Wall Street, helping to restore market confidence after a challenging week.
The ASX 200 experienced another weekly decline, marking four consecutive weeks of losses and officially entering correction territory after a pullback from its mid-February peak. Concerns over inflation, economic growth, and uncertainty surrounding US trade policies have contributed to recent market pressure.
Sector Performance & Stock Movement
Among sectors, Information Technology, Health Care, Consumer Discretionary, and Financials recorded the largest declines. In contrast, Utilities, Energy, and Materials sectors displayed resilience and managed to close in positive territory.
Several stocks saw significant movement. City Chic Collective (ASX:CCX), Audinate (ASX:AD8), Helloworld (ASX:HLO), and Johns Lyng (ASX:JLG) were among those that faced notable declines.
On the upside, DroneShield (ASX:DRO) delivered strong gains, while Regis Resources (ASX:RRL), Novonix (ASX:NVX), and Evolution Mining (ASX:EVN) also saw increased investor interest.
Australian Job Market & Interest Rate Outlook
The Australian labour market remains strong, with the economy adding more jobs than expected in January. Despite this growth, the unemployment rate edged slightly higher as workforce participation reached record levels.
The Reserve Bank of Australia (RBA) recently adjusted interest rates for the first time in years. Analysts suggest that a stronger-than-expected job report could lead to a pause in further rate changes at the upcoming April meeting, with expectations of a possible adjustment in May.
Wall Street Rebounds Amid Volatility
US markets ended the week on a stronger note despite some turbulence. The S&P 500, Nasdaq, and Dow Jones all experienced declines during the week, with the latter recording its weakest performance in months.
Investor sentiment improved after US lawmakers signaled support for a funding bill, easing concerns over a potential government shutdown. Additional optimism came from China’s announcement of upcoming economic stimulus measures and a fiscal agreement reached in Germany.
Technology stocks led the recovery, with Nvidia (NASDAQ:NVDA) rising sharply, Tesla (NASDAQ:TSLA) also advancing, and Palantir (NYSE:PLTR) making notable gains. Despite the rebound, some of these stocks remain below their recent highs.
Looking Ahead
Market attention is now shifting to Monday’s US retail sales data and Thursday’s Federal Open Market Committee (FOMC) meeting. Retail sales are expected to show growth after a previous decline, while the Federal Reserve is anticipated to hold interest rates steady, with projections indicating potential adjustments later in the year.
European Markets Show Strength
European markets ended the week on a positive note, with German equities leading the gains after policymakers reached an agreement to expand state borrowing. Financial and industrial stocks saw increased interest, adding to the optimistic sentiment across global markets.
With key economic data releases and central bank decisions ahead, market participants remain focused on upcoming developments that could shape global financial trends.
