The Australian sharemarket is poised to open lower today, with ASX 200 futures down 22 points or 0.35% at 8:30 am AEST, following a modest gain on Friday.
Investor sentiment has been dampened by renewed global trade tensions, particularly following US President Trump’s threat of imposing 50% tariffs on European Union imports and 25% tariffs against Apple and other smartphone makers unless they shift manufacturing to the US.
Wall Street ends lower amid tariff concerns
US equity markets closed lower on Friday, marking the fourth consecutive day of declines. The S&P 500 fell 0.67% to 5,803, the Dow Jones Industrial Average was down 0.61% to 41,603 and the Nasdaq Composite fell 1% to 18,737.
The technology sector led the downturn, with all Magnificent 7 stocks declining and Apple shares falling 3% amid the tariff threats. The broader market was also affected by rising bond yields and concerns over the US fiscal deficit.
In other US stock news, Nvidia announced a June target to start production of a new Blackwell AI chip for China, while Foxconn will proceed with a planned US$1.5 billion Apple component plant in India, despite Trump’s comments about bringing manufacturing back to the US. Apple plans to release smart glasses with camera, microphone and speaker capability by the end of 2026.
Commodities and currencies
Gold prices surged overnight as investors sought safe-haven assets amid re-escalating trade tensions. The gold futures price increased 2.1% to US$3,365.80 an ounce, with spot gold at about US$3,357 at the US close on Friday.
For the week, gold was up 5.6%, its biggest gain in six weeks.
Base metals saw gains, with copper up 3.4% and aluminium futures up 0.3%. Copper gained 5.5% on the week, while aluminium declined 1.3%. However, iron ore futures fell 0.1% on Friday on continuing property weakness in China.
Meanwhile, uranium equities saw strong moves overnight, with the Global X Uranium ETF up 11.6%, on news that Trump plans to sign an executive order aimed at reviving the US nuclear industry.
Global oil prices also rose on Friday, with WTI crude oil up 0.54% to US$61.53 a barrel.
The Australian dollar strengthened 1.23% against the US dollar, reflecting a broader depreciation of the greenback.
Looking ahead
Attention this week will be on domestic economic data, with the Australian Bureau of Statistics set to release the monthly Consumer Price Index for April on Wednesday. Markets anticipate a slight dip in the inflation indicator to 2.3% from 2.4% in March.
On the ASX today, Elders, SmartPay and Findi both release earnings reports. Horizon Minerals announced a $30 million capital raise, upsized from $25 million, and Origin Energy issued an update raising its earnings guidance for the 2025 financial year.
Wisetech announced a deal to acquire e2open for $2.6 billion, and Genesis Minerals announced the acquisition of the Laverton Gold Project from Focus Minerals for $250 million in cash.
In small caps action, Ionic Rare Earths Ltd signed a memorandum of understanding with UK-based sustainable materials leader EMR for the supply of end-of-life magnets and development of recycling initiatives.
Surefire Resources NL announced a capital raise of up to $3.87 million for developing the Yidby Gold and Copper Hill Projects for continued exploration, and QMines Ltd announced the results of a data review, interpretation and exploration targeting exercise at its Mt Chalmers copper and gold project, with the potential for significant extension of high-grade copper and gold zones.
