The Australian sharemarket is set to open on a positive note, with ASX 200 futures up 16 points (+0.19%) at 8:30 am AEST.
Investors appeared cautiously upbeat on news of “substantial progress” in US-China trade negotiations and a modest rebound in global commodities, though questions remained about how much good news markets have already priced in.
US markets wrap
US sharemarkets ended the week on a cautious note on Friday, closing mixed as investors digested President Donald Trump’s latest comments on Chinese tariffs ahead of weekend trade talks in Switzerland.
All three major indices oscillated between modest gains and losses throughout the session, ultimately reflecting investor hesitancy amid geopolitical and economic cross-currents. The S&P 500 dipped 0.07% to 5,660, while the Dow Jones was down 0.3% to 41,249. The tech-heavy Nasdaq Composite ended flat.
For the week, all three indices posted modest declines: the S&P was down 0.5%, the Dow was down 0.2% and the Nasdaq lost 0.3%.
Energy stocks led gains on Friday, climbing 1.1% as oil prices rallied nearly 2% on optimism surrounding a potential thaw in trade relations. The day’s worst performers were healthcare stocks, which fell 1.1%.
ASX small caps to watch
Several Australian small and mid-cap names are set to be active today on news flow and corporate updates:
- Dyno Nobel: Selling its Fertilisers Distribution unit to Ridley Corp for $375 million
- Ridley Corp: Shares halted pending a capital raise to support the acquisition
- FleetPartners: First-quarter net profit after tax came in at $38.9 million, in line with guidance, and the company announced a $25.3 million share buyback
You can also read about the following and more throughout the day:
- Tryptamine Therapeutics Ltd, a clinical-stage biotechnology company, has appointed Herwig Janssen as Non-Executive Chairman, effective 12 May 2025. The appointment sees Mark Davies step down as Chair and Chris Ntoumenopoulos transition to Executive Director. The Company believes the refreshed Board structure will support its near-term clinical development and commercialisation efforts.
- Resolution Minerals Ltd Ltd has provided an operational update following its acquisition of three highly prospective exploration projects. Progress has been reported at the Spur South Gold-Copper Project (Exploration Licence 9720) and the Drake East Antimony-Gold Project (Exploration Licence 9730).
- Firebird Metals Ltd has completed calcining and leaching test work for Taza Metal Technologies, forming part of the technical due diligence on Firebird’s proprietary energy-efficient calcining kiln for manganese chemical production.
- Andromeda Metals Ltd has raised approximately A$5 million before costs via a placement of new fully paid ordinary shares. The capital will be applied towards the Company’s ongoing operational and development activities.
- Elixir Energy Ltd has released an updated Strategic Plan under the leadership of its new Chief Executive Officer. The revised strategy centres exclusively on the Company’s position in Queensland’s Taroom Trough, where Elixir is targeting the commercialisation of independently certified multi-trillion cubic feet (TCF) gas resources.
- European Lithium Ltd has reported historic assay results from deep diamond drill holes DDH 306-13 and DX-02 at the Tanbreez Rare Earth Project in Greenland, revealing significant concentrations of total rare earth oxides.
Meanwhile, in broker moves, Bell Potter upgraded Catalyst Metals to Buy, with the target raised to $7.05 from $6.30, and UBS upgraded Goodman Group to Buy, though the target price was trimmed slightly.
European trading
In Europe, equities extended gains, with Germany’s DAX reaching an all-time high – up 0.6% - as investors welcomed signs of easing trade tensions. Energy and basic resources led sector gains, with BP shares jumping 4.7% following a report that several global energy giants (including Shell, Chevron and ExxonMobil) are evaluating a potential takeover.
The continent-wide FTSEurofirst 300 rose 0.4%, gaining 0.2% for the week. London’s FTSE 100 added 0.3% on the day, although it fell 0.5% over the week.
Bond and currency markets
Bond markets were relatively quiet to close out last week, with light trading volumes and a wait-and-see mood ahead of the weekend trade talks.
The yield on US 10-year Treasuries edged up by 1 basis point to 4.38%, while the 2-year yield slipped 1 point to 3.89%. Yields were 6-7 basis points higher over the week, reflecting a modest uptick in rate expectations.
Currency markets saw the US dollar weaken slightly, with the euro rising US$1.1232 to US$1.1290 and settling near US$1.1245, while the Australian dollar firmed to around US64 cents.
Commodities
Commodities posted broad gains, led by a climb in oil prices supported by trade optimism and the recently announced US-UK trade deal framework. Brent crude rose 1.7% to US$63.91 a barrel, while US Nymex crude added 1.9% to US$61.02.
Both benchmarks gained over 4% for the week – their first weekly rise since mid-April.
Gold rallied 1.1% to US3,344 an ounce, with spot gold trading near US$3,324 at the close. Prices were up 3.1% for the week, aided by a weaker dollar and safe-haven demand.
Base metals rose, with copper up 1.1% and aluminium climbing 0.7% on Friday. However, copper was still down 0.4% over the week amid concerns about global demand.
Iron ore prices ticked up 0.3% to US$98.55 a tonne, rising 0.4% for the week as investors weighed hopes for improved US-China trade relations against seasonally weak Chinese steel demand.
Looking ahead
While no major economic data are expected in Australia today, the global focus will likely remain on the US-China trade narrative, with investors watching closely for follow-up statements or concrete policy shifts after the talks in Switzerland.
Several ASX stocks are trading ex-dividend this week, including:
- Future Generation Global (May 12): $0.037
- Dominion Income Trust (May 12): $0.579
- National Australia Bank (May 12): $0.85
- ANZ (May 13): $0.83
- Wam Alternative Assets (May 15): $0.027
- EZZ Life Science Holdings Ltd (May 16): $0.02
In addition, Dyno Nobel will release earnings, Cosol will pay dividends and Waypoint REIT is holding its annual general meeting.