Markets Overview
- ASX SPI 200 futures up 0.2% to 9,047.00
- S&P 500 up 0.7% to 6,909.51
- Dow Average up 0.5% to 49,625.97
- Aussie up 0.3% to 0.7078 per US$
- US 10-year yield rose 1.6bps to 4.0826%
- Australia 3-year bond yield fell 4.8 bps to 4.28%
- Australia 10-year bond yield fell 5.5 bps to 4.73%
- Gold spot up 2.2% to $5,107.45
- Brent futures up 0.1% to $71.76/bbl
Economic Events
Australia’s government said it will “examine all options” after US President Donald Trump imposed a 15% tariff on foreign imports. Ampol, Lendlease and Austal are set to report financial results.
The US dollar traded in a tight range early Monday as uncertainty lingered after President Donald Trump lashed out at the US Supreme Court for striking down his use of emergency powers to impose so-called reciprocal tariffs.
Risk currencies such as the Mexican peso edged lower while the euro and Japanese yen inched higher. The Thai baht, which is influenced by movements in gold, fluctuated. Bitcoin fell 1.4%.
Trump said Saturday he would raise a 10% global tariff to 15% to preserve protective trade measures, stoking fresh economic turbulence after the Supreme Court ruling. The friction spilled out Sunday as Europe’s trade chief said he’ll propose halting ratification of a deal struck with the US, while India postponed talks to finalize an interim trade deal.
“We’ve got so much experience of Trump now that we don’t think he’ll take this lying down,” said Nick Twidale, chief market analyst at AT Global Markets. “The increased uncertainty and question marks around what Trump will do next outweigh any potential positives from lower tariffs and potential paybacks.”
Senior US officials said Trump’s tariff defeat at the Supreme Court won’t unravel deals negotiated with US partners.
Those deals — which the administration made with partners including China, the European Union, Japan and South Korea — remain in place, US Trade Representative Jamieson Greer said Sunday on CBS’s Face the Nation.
The S&P 500 added 0.7% Friday, notching its best week since Jan. 9, with optimism over the Supreme Court’s tariff ruling offsetting worries over heightened tensions between the US and Iran. An ETF tracking emerging markets hit all-time highs. The dollar slipped 0.2%, trimming its weekly advance to 0.6%. ‘
The yield on 10-year Treasuries rose two basis points to 4.08% in a volatile session Friday following mixed growth and inflation data before the tariff ruling added uncertainties over any potential budget shortfall. Treasuries are closed in Asian trading on Monday due to a holiday in Japan.
