Market sentiment continues to stabilise, but it may not stop the ASX 200 from wavering today after Wall Street closed lower last night in an Easter-shortened trading week.
ASX 200 futures are down just 3 points to 7782 points after the US session ended.
The S&P/ASX 200 edged 13.1 points higher on Tuesday, closing up 0.17% amid cautious trade and renewed concerns over global tariff developments.
Healthcare led sector gains, rising 1.3%, underpinned by a strong performance from CSL Limited (+2.6%) and Resmed (+0.63%). The sector was buoyed by a Morgan Stanley report that identified both companies as “best positioned at current levels” to navigate the ongoing tariff-related volatility.
Financials also supported the broader index, advancing 0.5%. All four major banks posted gains between 0.5% and 1.0%, aided by continued safe-haven buying and opportunistic bargain hunting. QBE Insurance Group climbed 1.5%, leading gains among insurers.
Materials rose 0.42%, with rare earths and critical minerals companies outperforming following a renewed push from the United States to bolster domestic semiconductor supply chains. The shift is seen as a tailwind for Australian producers aiming to diversify global supply.
Information Technology lagged the broader market, shedding 1.0% as sector peers on Wall Street declined overnight. WiseTech Global fell 1.2%, with investors locking in profits after a recent rally.
While investor sentiment remains generally steady, trade tensions linger in the background, casting a shadow over near-term confidence.
US markets retreat as tariff uncertainty offsets earnings momentum
US sharemarkets ended lower on Tuesday as renewed trade tensions unnerved investors. Markets initially opened higher, with the Nasdaq gaining nearly 1%, but early momentum faded as sentiment was dampened by escalating concerns over tariff-related disruptions.
Investor confidence was shaken by news that the United States is initiating probes into semiconductor and pharmaceutical imports, heightening fears of broader tariff measures. These developments overshadowed solid earnings from key financial institutions.
Bank of America Corporation advanced 4% after reporting revenue of US$27.5 billion for the quarter, surpassing forecasts of US$26.9 billion, and adjusted earnings per share (EPS) of US$0.90 against expectations of US$0.82. Citigroup Inc gained over 3% following stronger-than-expected results, with quarterly revenue of US$21.6 billion and adjusted EPS of US$1.96.
Johnson & Johnson also beat estimates with revenue of US$21.8 billion and EPS of US$2.77. However, its shares fell as pharmaceutical tariff fears pressured the sector. Boeing Company shares declined nearly 2% after reports surfaced that China had directed its airlines to halt new aircraft deliveries.
The Dow Jones Industrial Average closed 155 points or 0.4% lower. The S&P 500 Index slipped 0.2%, while the Nasdaq Composite eased by 8 points or 0.1%.
European markets rise on tariff reprieve
European equities advanced on Tuesday, led by automotive stocks. Remarks from Donald Trump indicating potential exemptions on tariffs for imported vehicles and parts lifted sentiment. Stellantis NV surged more than 6%, while Volkswagen AG and Bayerische Motoren Werke AG (BMW) gained 3% each. Mercedes-Benz Group AG added 1.8%.
Banking stocks also strengthened, supported by expectations that the European Central Bank (ECB) will begin cutting interest rates from April, with additional reductions anticipated in June and September. Societe Generale rose nearly 5%, while Banco Santander and UniCredit gained over 3% each. Luxury goods conglomerate LVMH lost more than 7% after posting a first-quarter earnings miss.
- The pan-European FTSEurofirst 300 Index rose 1.6%.
- The UK FTSE 100 Index added 1.4%.
Currencies, commodities and metals
Currencies
Currency markets were mixed.
The US dollar rebounded from two-year lows.
- The Euro fell from US$1.1380 to US$1.1264, settling near US$1.1280.
- The Australian dollar rose to US63.83 cents before easing to US63.46 cents.
- The Japanese yen appreciated to JPY142.60 before weakening slightly to JPY143.23.
Commodities
Global oil prices declined after a two-day rally, weighed down by concerns over potential oversupply.
- Brent crude slipped US$0.21 or 0.3% to US$64.67 per barrel.
- US Nymex crude fell US$0.20 or 0.3% to US$61.33 per barrel.
Metals
Base metal prices were mixed.
- Aluminium rose 0.5%, while copper was flat.
- Iron ore gained US$1.14 or 1.2% to US$100.19 per tonne, supported by optimism surrounding Chinese stimulus measures.
- Gold prices continued to climb. Futures rose US$13.70 or 4% to US$3,240 an ounce, with spot gold trading near US$3,229 at the US close.
What about small caps?
The S&P/ASX Small Ordinaries (XSO) fell 0.32% to finish yesterday at 2,950.90. The index has gained 4.15% over the past five days.
News is steadily coming in and you can read about the following and more throughout the day.
- Sovereign Metals Ltd has begun several geotechnical drilling programs at its Kasiya Rutile-Graphite Project in Malawi. These works aim to inform the infrastructure layout and engineering design for the Definitive Feasibility Study (DFS), which remains on track for completion in the fourth quarter of 2025.
- Nexus Minerals Ltd has initiated a 10,000 metre aircore drilling program at its Wallbrook Gold Project, located 140 kilometres northeast of Kalgoorlie. The campaign targets newly defined zones MC5.4 and MC4.3, alongside further testing at MC1.4, where previous work identified significant alteration and anomalous gold mineralisation. The program forms part of Nexus' regional exploration strategy and is expected to conclude in May, with assay results to follow.
- Antipa Minerals Ltd has begun Phase 1 drilling at its wholly owned and recently reconsolidated Minyari Project in Western Australia's Paterson Province. The campaign comprises 389 holes for 35,000 metres and includes aircore, reverse circulation, and diamond drilling, targeting both resource expansion and new discoveries.
- In the biotech sector, Prescient Therapeutics Ltd has secured Fast Track Designation from the United States Food and Drug Administration (FDA) for its lead candidate PTX-100. The designation supports its development for relapsed or refractory (r/r) mycosis fungoides, the most common form of Cutaneous T Cell Lymphoma (CTCL), marking a significant milestone in advancing its personalised oncology treatments.