AUS
NZ
UK
CA
USA
IND
Highlights
- ASX200 futures hint at a positive open
- Nasdaq posts strongest monthly rally since 2023
- Key economic data in focus this week
The Australian share market is poised for a mild uptick at the start of the week, with S&P/ASX200 futures rising by 8 points (+0.09%) as of 8:30 am AEST. This comes after a solid close last week, with the S&P/ASX200 index gaining 73 points (+0.88%) to finish at 8,434, notching up a 3.8% gain for May.
Investor sentiment was buoyed by a dovish shift from the Reserve Bank of Australia and improving global trade dynamics. Among standout performers last week were (ASX:HE8), advancing 16.67%, and (ASX:EML), climbing 16.49%. On the flip side, (ASX:NVX) slid 13.40%, while (ASX:IMU) dropped 11.76%.
Sector-wise, Information Technology and Energy led the charge, up 3.85% and 2.61% respectively. Meanwhile, Utilities and Materials lagged, shedding 0.68% and 0.21%. Small caps also saw a moderate lift, with the S&P/ASX Small Ordinaries (XSO) adding 1.28% for the week.
This week, market watchers will be closely following Australia's Q1 2025 GDP data, scheduled for release on Wednesday. Forecasts suggest a 0.4% quarter-on-quarter rise, which could bring annual growth to 1.5%. This projection aligns with the RBA’s full-year expectations of 1.8% by June and 2.1% by December. Rate cut speculation continues to simmer, with futures markets pricing in a 70% chance of a cut in July and 73 basis points of easing by year-end.
International markets offered mixed cues. The Nasdaq posted an impressive 9.04% gain in May, marking its best month since November 2023. The S&P 500 and Dow Jones followed suit, rising 6.15% and 3.94% respectively. Dovish commentary from the US Federal Reserve and cooler-than-expected inflation readings supported the rally.
In Europe, stocks ended the week on a higher note despite lingering trade concerns. Germany’s inflation slowed to 2.1% in May, offering some optimism around potential European Central Bank rate adjustments.
Commodities showed signs of softness. Brent crude eased to US$63.90 a barrel, while gold futures declined 0.9% to US$3,315.40 an ounce amid tariff uncertainty. Iron ore futures also slipped for a second straight week, closing at US$99.12 a tonne.
