Kalkine: Turbulence in Global Markets as Musk-Trump Rift Sways Sentiment: Impact on ASX200

June 06, 2025 10:46 AM AEST | By Team Kalkine Media

Kalkine: Turbulence in Global Markets as Musk-Trump Rift Sways Sentiment: Impact on ASX200 — Image source: Shutterstock

Tech Fallout in the US

Wall Street took a hit after a widely publicized dispute between Tesla CEO Elon Musk and former US President Donald Trump rattled investor confidence. Tesla (NASDAQ:TSLA) shares nosedived 14.3%, dominating headlines and overshadowing more constructive developments like renewed diplomatic engagement with China on tariff matters.

Other notable US movers included Brown-Forman (NYSE:BF.B), which slumped 17.9% following disappointing forward guidance. Procter & Gamble (NYSE:PG) slid 1.9% after unveiling a significant workforce reduction, impacting around 7,000 roles.

On the macro front, US jobless claims increased to 247,000, while a narrower trade deficit of US$61.6 billion painted a mixed picture. Nevertheless, bond yields ticked higher, with the US 10-year yield climbing to 4.39%.

Europe Calmer as ECB Trims Rates

In contrast to US market volatility, Europe exuded relative calm after the European Central Bank (ECB) delivered a 25-basis-point rate cut. Despite caution around further easing, equity markets in the region edged higher. The pan-European FTSEurofirst 300 gained 0.2%, with the FTSE 100 up 0.1%. Sectors such as banking and basic resources posted modest gains, rising 0.8% and 1.4% respectively.

ASX and Currency Outlook

The Australian dollar remained stable near 65.05 US cents, reflecting resilience despite global uncertainties. Bond markets mirrored international moves, with the 10-year Australian yield rising to 4.27%.

Investors interested in ASX dividend stocks might find relative stability appealing amid global headwinds, especially as income-focused strategies gain traction in uncertain times.

Commodities and Global Trade

Oil prices moved higher on signs of thawing relations between the US and China. Brent crude rose 0.7% to US$65.34 per barrel, and WTI advanced 0.8% to US$63.37. Copper gained 1% following concerns about supply disruptions at the Kakula mine, while aluminium also edged up. Gold retreated slightly to US$3,375.10 per ounce, and iron ore slipped 0.6% to US$95.70/tonne amid subdued demand from China.

These movements are likely to influence sentiment around S&P/ASX200 companies with exposure to global commodities.

Domestic attention will shift to Australian labour market figures due today. Investors also look forward to the upcoming US nonfarm payrolls release. Meanwhile, Australian markets will pause on Monday for the King’s Birthday holiday, offering a brief reprieve from recent volatility.

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