Global Trade Concerns and Earnings Reports Stir ASX Movements

February 25, 2025 11:12 AM AEDT | By Team Kalkine Media

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Global Trade Concerns and Earnings Reports Stir ASX Movements — Image source: shutterstock

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Highlights

Global market uncertainty impacts performance.

Mixed corporate earnings drive varied outcomes.

Broad sector shifts mark the trading session.

A wave of global market uncertainties influenced the Australian sharemarket on Tuesday, as fluctuations in U.S. equities resonated locally. The S&P/ASX 200 index experienced a 0.5% decline, reversing modest gains from the previous session. Similarly, the All Ordinaries Index dropped by 0.5%, with 10 out of 11 sectors registering lower activity, particularly in the consumer discretionary segment.

Market sentiment was further dampened by events overseas. Notably, U.S. indexes oscillated between gains and losses, highlighted by a 3% decrease in shares of the prominent chipmaker Nvidia. Investor attention now turns to the anticipated earnings update from this technology leader, especially in the wake of competitive pressure from a Chinese start-up recently entering the field with a cost-efficient large language model.

Heightening global concerns, recent remarks from the U.S. President regarding the planned tariffs on Mexico and Canada next month have reignited apprehensions about global trade tensions. This development has had a noticeable ripple effect on investor confidence, influencing trading behavior on the local bourse.

On the corporate front in Australia, performance metrics varied widely. Viva Energy (ASX:VEA) registered a sharp decline of 20.2%, closely mirroring a 20% decrease in its half-year profit figures. Fast-food giant Domino’s Pizza (ASX:DMP) recorded a 7.7% downturn, primarily attributable to substantial restructuring expenses that contributed to a reported loss in the period.

Other market participants faced their own challenges. WiseTech Global (ASX:WTC) noted a 2.5% reduction, following significant pressure after four board members stepped down amid internal strategic debates. Retail conglomerate Wesfarmers (ASX:WES) also faced a 1.7% decrease in share value following its ex-dividend date.

In contrast, several companies reported encouraging developments. Woodside Energy (ASX:WPL) inched up by 0.5% after more than doubling its full-year net profit, although underlying profits dipped by 13% due to softer oil and gas prices. Sims Limited (ASX:SGP) improved by 2.1% as its North American operations drove a 184% surge in underlying earnings. Amplitude Energy (ASX:APE) turned profitable with a 5% gain, while Zip (ASX:ZIP) saw a 6.3% rise, supported by robust cash earnings and a steady increase in transaction volume.

Media and real estate sectors showed mixed signals. Nine Entertainment (ASX:NEC) advanced 4% despite a 15% contraction in interim earnings, and Ingenia Communities (ASX:ING) grew 2.9% with a notable rise in home settlements. However, Block (NYSE:SQ) experienced a 3.7% decline after its fourth-quarter revenue fell short of expectations.

Overall, the trading session reflected a cautious market environment as investors assessed global trade developments and a spectrum of corporate earnings updates.

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