Markets Overview
- ASX SPI 200 futures up 0.9% to 7,949.00
- Dow Average up 1.1% to 42,047.46
- Aussie down 0.6% to 0.6250 per US$
- US 10-year yield fell 2.5bps to 4.2244%
- Australia 3-year bond yield fell 6.6 bps to 3.70%
- Australia 10-year bond yield fell 7.5 bps to 4.38%
- Gold spot up 1.3% to $3,123.77
- Brent futures up 1.5% to $74.74/bbl
Economic Events
- 09:00: (AU) March S&P Global Australia PMI Mfg, prior 52.6
- 11:30: (AU) Feb. Retail Sales MoM, est. 0.3%, prior 0.3%
- 14:30: (AU) April RBA Cash Rate Target, est. 4.10%, prior 4.10%
A renewed wave of volatility gripped global markets just days ahead of President Donald Trump’s tariff rollout, with stocks erasing losses in the final stretch of a jittery quarter. As equities bounced, bonds moved away from session highs. Gold climbed to a record.
From New York to London and Tokyo, stocks were hit by intense swings. While the S&P 500 wiped out a 1.7% slide, US shares saw their worst quarter compared to the rest of the world since 2009. Defensive groups outperformed. Energy producers joined a rally in oil as Trump suggested the US may work to curtail crude shipments from Russia. A gauge of the “Magnificent Seven” megacaps extended a quarterly rout to 16% amid lingering concerns of an artificial-intelligence bubble.
It was the first time since the onset of the pandemic in March 2020 that bonds rose and stocks fell in a three-month period. The dollar, long a go-to hiding place during market selloffs, has not been acting as such lately. While the greenback saw a mild gain Monday, it suffered the worst start to a year since 2017.
The Trump administration’s mixed messaging on what new tariffs will be unveiled Wednesday and how they’ll be announced have traders flustered as they try to position around the biggest risk confronting the market in years.
Trump’s top spokesperson said the announcement would feature “country-based” tariffs, but added that the president is also “committed” to implementing sectoral duties at another time.
“Tariffs will likely continue to drive the market discussion,” said Chris Larkin at E*Trade from Morgan Stanley. “Whether tariffs are more or less rigid than expected could go a long way toward shaping the market’s near-term momentum.”
The S&P 500 rose 0.6% Monday, while still posting its worst month and quarter since 2022. The Nasdaq 100 was little changed. The Dow Jones Industrial Average added 1%. Tesla Inc. led losses in megacaps, while Apple Inc. gained. Newsmax Inc. skyrocketed in its debut session. Vaccine stocks sank as a top regulator left the US Food and Drug Administration.
The yield on 10-year Treasuries declined three basis points to 4.22%. The Bloomberg Dollar Spot Index rose 0.2%. Gold topped $3,100 for the first time.
