ASX Pre-Open Brief 12.03.2025
ASX Outlook:
Global markets were volatile overnight, with ASX 200 futures an especially poor performer, closing the session down 0.95%. Trump tariffs remain the key focus and the potential flow-on effects to Australia’s resource-heavy economy.
In the US, the S&P 500 futures dropped 0.78%, and the Nasdaq 100 saw slower declines at 0.28%. In the US, tech remains the focus sector, with Apple sliding 2.92% overnight. Tesla halted its price decline with a 3.79% gain, although it’s still down 52% since its high in December.
Trump discussed further tariffs on Canada to the tune of 50% on steel and aluminium and it has been confirmed that Australian steel and aluminium will pick up a 25% tariff. In a bright spot among the chaos, Ukraine has conceded to the idea of an initial 30 day ceasefire with Russia, bringing some hope in a fraying global landscape.
Germany's DAX index fell 0.83%, while the broader Stoxx Europe 600 index declined 1.34%. In Asia, markets closed mixed. China's A50 futures gained 0.07%, Hong Kong's Hang Seng futures dropped 0.13%, while Japan's Nikkei futures dropped 0.65%.
The Vix remains elevated at 22.765, suggesting continued concern among investors that volatility will continue.
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 Futures (Source: TradingView)
ASX Tech Sector is Falling
ASX Tech sector index (Source: TradingView
ASX Stock to Watch: APA Group (ASX:APA)
ASX Stocks to Watch (Source: TradingView)
