ASX Pre-Open Brief 11.03.2025
ASX Outlook:
The Australian market is poised for a rough start. ASX 200 futures are down 1.1% as recession fears grow. Have Trump tariffs derailed the world economy in 2025?
In the US the S&P 500 dropped 2.7%, and the Nasdaq Composite plummeted 4%, marking its worst day since 2022. Tesla led the tech sector's decline, plunging 15.4%, now down 50% from its December high. President Trump's ambiguous comments over the weekend about a potential recession added fuel to the fire, leaving markets jittery.
European stocks weren't spared either. Germany's DAX index fell 1.7%, while the broader Stoxx Europe 600 index declined 1.3%. In Asia, markets closed mixed. China's Shanghai Composite dipped 0.2%, Hong Kong's Hang Seng index dropped 1.8%, while Japan's Nikkei edged up slightly by 0.1%.
It’s clear that the markets fully expect the tariff war to backfire and for the US to wear the worst of it.
Vigilance and preparation are key right now.
Major Themes to Watch:
Tariffs and trade war: Markets are taking this very seriously, with a recession or hot war becoming a more serious prospect.
The Ukraine war: The resolution to the conflict in Ukraine is of concern as it appears now just as likely to escalate into a broader conflict, leading to risk-off flows.
Tech Sector Volatility: Significant sell-offs in major tech stocks, particularly Tesla, indicate that the market is taking risk off the table.
Data to Watch this Week:
Wednesday 12th:
US CPI
Thursday 13th:
US PPI
Reading List:
Global Markets
Global Equity Indices (Source: TradingView)
ASX Sectors to Watch
ASX Sectors to Watch (Source: TradingView)
ASX Stocks to Watch
ASX Stocks to Watch (Source: TradingView)
