ASX 200 futures were up 32 points or 0.38% at 8:30 am AEST, tracking strength in global equities as major US indices advanced overnight. The S&P 500 posted its ninth consecutive gain, fully erasing the losses from its recent pullback. Investor sentiment was buoyed by renewed optimism over US-China trade relations and a stronger-than-expected US jobs report.
The ASX200 surged 270 points or 3.4% last week to close at 8,238—its strongest weekly gain since December 2023, and now 14.9% above its April low. The rally added A$85 billion in market capitalisation, underpinned by optimism over potential US trade deals, solid US corporate earnings, and the domestic Q1 inflation report. The Reserve Bank of Australia's preferred Trimmed Mean measure returned to the 2–3% target band for the first time since late 2021, setting the stage for a possible rate cut at the upcoming policy meeting.
Sector gains were led by Information Technology (+9.55%), Real Estate (+5.86%), Health Care (+5.29%) and Consumer Discretionary (+4.85%). The weakest performers included Materials (+0.47%) and Industrials (+2.62%). Bannerman Energy, Adairs, Platinum Asset Management, and Silex Systems were among the top individual performers.
Westpac Banking Corporation Ltd released its first-half results for financial year 2025. However, most key performance indicators came in below market expectations, weighing on early sentiment in the local banking sector.
With a quiet domestic data calendar, market focus will shift to the outcome of the weekend’s Federal Election, where the Labor Party secured a decisive victory. The result removes uncertainty and supports policy continuity, offering a mildly positive backdrop for the local equity market.
Markets surge on strong US data and easing trade concerns
Global equities rallied last week, buoyed by robust economic data and signs of easing trade tensions between the United States and China. The Nasdaq Composite led gains, advancing 3.45%, while the Dow Jones Industrial Average climbed 1,207 points or 3%. The S&P 500 added 2.11%, marking its ninth consecutive daily gain—its longest winning streak since 2004.
Friday’s US Non-Farm Payrolls report provided further support, with 177,000 jobs added in April, beating expectations of 135,000. The unemployment rate held steady at 4.2% for a twelfth consecutive month, although it would have fallen to 4.0% were it not for a modest rise in the participation rate to 62.6%. This strength in the labour market has tempered expectations of imminent monetary easing, with markets now assigning a 35% chance of a June rate cut by the Federal Reserve, down from 55%, and forecasting a first cut in July with 78 basis points of reductions by year-end.
This week, investor attention will turn to ongoing US-China trade discussions and the Federal Reserve’s interest rate decision, with rates expected to remain at 4.25%–4.50%. Key corporate earnings reports from Ford, AMD, Walt Disney, and Uber are also due, alongside the ISM Services PMI, forecast to slip to 50.2.
European equities rally on robust US jobs data
European sharemarkets advanced strongly on Friday following the release of better-than-expected US employment data for April, which lifted investor sentiment globally. The industrials and technology sectors led gains, each rising by more than 3.0%.
- The continent-wide FTSEurofirst 300 index climbed 1.8%.
- London’s FTSE 100 index rose 1.2%, marking a record streak for consecutive daily gains.
For the week, European indices posted gains between 2.2% and 3.0%.
Currency movements
In currency markets, movements against the US dollar were mixed.
- The Euro declined from US$1.1379 to US$1.1292.
- The Australian dollar strengthened from US64.04 cents to US64.68 cents, before easing slightly to US64.40 cents.
- The Japanese yen appreciated to JPY143.73 from JPY145.27, and was trading near JPY144.95 at the US close.
Oil tumbles ahead of OPEC+ meeting
Global crude oil prices fell sharply on Friday and recorded their steepest weekly declines since March’s end.
- Brent crude dropped US84 cents or 1.4% to US$61.29 a barrel.
- West Texas Intermediate (Nymex) shed US95 cents or 1.6% to US$58.29 a barrel.
- Weekly losses totalled 8.3% for Brent and 7.5% for Nymex, as markets remained cautious ahead of the upcoming OPEC+ meeting on output policy.
Mixed results for base metals
Base metal prices ended higher on Friday, with copper up 1.0% and aluminium adding 0.6%, buoyed by optimism surrounding US-China trade negotiations. However, both metals recorded weekly declines, down 4.3% and 1.9% respectively.
- Gold futures rose US$21.10 or 0.7% to US$3,243.30 an ounce, with spot prices near US$3,240. Despite the daily lift, gold recorded a second straight weekly loss, falling 1.7%, under pressure from reduced geopolitical risk and firm US economic data.
- Iron ore futures fell US$1.06 or 1.1% to US$98.19 per tonne, marking a weekly drop of 1.7%.
What about small caps?
The S&P ASX Small Ordinaries finished Friday 0.56% higher to 3,085.40 and was 2.98% higher over the week.
News is trickling, but there are still plenty of quarterlies to cover. You can read about the following and more throughout the day.
- Apollo Minerals Ltd has reported assay results from recent drilling at its Salanie Gold Project in Gabon, following up on promising outcomes from its 2024 Phase 1 campaign—the first modern drilling program undertaken at the site in 70 years. The latest results confirm the presence of high-grade, shallow gold mineralisation, including 5.8 metres at 8.2 grams per tonne (g/t) gold from 15.5 metres downhole within a broader intercept of 11.7 metres at 4.3 g/t gold from 9.6 metres at the A1 prospect.
- Race Oncology Ltd has strengthened its clinical leadership team with the appointment of Dr Jose Iglesias as Chief Medical Officer, succeeding Dr Michelle Rashford, and Dr Simon Fisher as Vice President of Clinical. Both appointments are effective immediately and reflect Race's focus on advancing its oncology programs with experienced pharmaceutical leadership.
- Astral Resources NL has finalised its acquisition of Maximus Resources Ltd. As at April 4, 2025, Astral held a 91.24% interest in Maximus’ fully paid ordinary shares and has now secured full ownership following the completion of compulsory acquisition procedures.