The ASX is poised for a weaker open today, with ASX 200 futures down 30 points or 0.38% as of 8:30 am AEST, tracking sharp declines on Wall Street amid mounting global uncertainty.
The Nasdaq Composite re-entered bear market territory overnight, leading a broad-based US equity sell-off driven by a confluence of macroeconomic and geopolitical concerns. Investors were rattled by growing doubts over the US Federal Reserve's policy independence following renewed pressure from President Donald Trump to cut interest rates.
Adding to the volatility, sentiment was undermined by weaker corporate earnings guidance and a fresh round of analyst downgrades, which further eroded investor confidence. US-China trade tensions also escalated, renewing fears of broader economic disruption.
The VIX, Wall Street’s so-called “fear gauge”, spiked sharply, reflecting rising investor anxiety and prompting a flight from risk assets. Analysts noted that the US dollar’s safe-haven status appeared to be weakening, compounding the pressure on global equity markets.
Given the scale of the US retreat, Australian investors are likely to adopt a cautious stance at the start of the local session, with broad-based sector weakness expected to weigh on the benchmark index.
Looking at the small cap sector, it had a strong finish to the week last week, gaining 1.10% on Thursday and 2.03% for the week.
One notable announcement this morning comes from Race Oncology Ltd with the activation of the second site for patient enrolment for its Phase 1 clinical trial of RC220, in combination with doxorubicin, in patients with advanced solid tumours at the Central Coast Local Health District (Gosford and Wyong Hospitals). Site activation follows the receipt of human ethics approval, site initiation and completion of all the required documentation.
US markets slump as Trump attacks Fed independence and trade tensions persist
United States equity markets plunged on Monday as renewed criticism from President Donald Trump against Federal Reserve Chair Jerome Powell intensified concerns about the central bank’s independence. In a post on Truth Social, Trump referred to Powell as “Mr. Too Late, a major loser”, urging immediate rate cuts and warning the economy was headed for a slowdown without intervention.
The sell-off was broad-based, with all 11 sectors in the S&P 500 ending in the red. Consumer discretionary and technology stocks were the hardest hit, falling between 2.7% and 2.9%. Semiconductor and artificial intelligence (AI) stocks led the losses after reports that China’s Huawei Technologies would begin shipping advanced AI chips from next month. Nvidia dropped 4.5%, while the Philadelphia semiconductor index shed 2.1%.
Tesla fell 5.8% following a delay in the production launch of a new Model Y version, while Amazon and Meta Platforms lost 3.1% and 3.4% respectively. UnitedHealth declined 6.3% after a broker downgrade post-earnings, and Caterpillar fell 2.8%.
The Dow Jones Industrial Average dropped 972 points or 2.5%, the S&P 500 lost 2.4%, and the Nasdaq Composite fell 415.5 points or 2.6%.
Closed in Europe
European sharemarkets were closed for the Easter Monday holiday. On Thursday, the FTSEurofirst 300 index fell 0.2%, while the UK FTSE 100 edged higher.
Currencies, commodities and metals
Currencies
Currency markets saw the US dollar strengthen.
- The Euro declined from US$1.1572 to US$1.1482.
- The Australian dollar eased to US64.15 cents.
- The Japanese yen slipped to JPY140.90.
Commodities
Oil prices dropped over 2% on signs of progress in US-Iran talks and ongoing demand concerns.
- Brent crude fell US$1.70 to US$66.26 a barrel.
- US Nymex lost US$1.60 to US$63.08 a barrel.
Metals
Base metals were mixed.
- Copper edged down 0.2%, while aluminium rose 1.0%.
- Gold surged US$96.90 or 2.9% to US$3,425.30 an ounce, reaching a record US$3,430.18 intraday.
- Iron ore dipped US13 cents to US$99.92 a tonne.