ASX Market Outlook: Pre-Open Brief 20.03.2025 - Futures, Stocks and Key Events
ASX Stock Market Outlook
After a brief period of caution, optimism seems to be making a comeback. ASX 200 futures are pointing to a 0.67% rise at the open, tracking gains on Wall Street as investors digest the Federal Reserve's latest stance.
The theme? Renewed confidence.
Overnight Wrap: Equities, Bonds, Commodities and Currencies
Wall Street rallied overnight, with major indices posting solid gains. The S&P 500 rose 1.14%, the Dow Jones Industrial Average added 0.97%, and the Nasdaq 100 climbed 1.34%. This surge came after the Federal Reserve decided to keep interest rates unchanged, signaling a patient approach amid economic uncertainties.
In the bond market, yields eased, with the 10-year Treasury yield dipping to 4.24%. Gold prices continued their ascent, reflecting investor demand for safe-haven assets amid ongoing trade tensions and geopolitical uncertainties.
The Play Today: How to Trade the ASX Open
With the ASX poised for a positive open, several sectors warrant attention:
Gold Stocks: The continued rise in gold prices suggests that gold miners may see upward momentum. Companies like Newcrest Mining and Evolution Mining could be in focus.
Tech Sector: The overnight rally in U.S. tech stocks, including Tesla and Alphabet, may spill over to ASX-listed tech companies. However, given recent volatility, investors should approach with caution.
Energy Stocks: With oil prices ticking higher, energy companies could benefit. Keep an eye on heavyweights like Woodside Petroleum and Santos.
Caution remains essential. While optimism has returned, uncertainties surrounding trade policies and geopolitical events persist. Staying informed and agile will be key in navigating these markets.
Major Themes Driving the Financial Markets:
Federal Reserve's Stance: The Fed's decision to hold interest rates steady reflects a cautious approach amid economic uncertainties. Policymakers have revised growth forecasts downward and acknowledged potential inflationary pressures from ongoing trade tensions.
Trade Tensions and Tariffs: The Trump administration's tariff policies continue to inject volatility into global markets. The potential for higher inflation and slower growth—stagflation—remains a concern.
Tech Sector Dynamics: Significant movements in major tech stocks, particularly companies like Tesla and Alphabet, highlight the sector's sensitivity to broader economic indicators and policy decisions. Investors should monitor these developments closely.
Economic Data to Watch this Week:
Monday 17th:
Chinese industrial production 5.9% vs 5.3% expected
Chinese retail sales 4.0% vs 3.8% expected
US retail sales 0.2% vs 0.6% expected
Tuesday 18th:
Australia’s Sarah Hunter of the RBA to speak at the Australian Financial Review Banking Summit
Canadian CPI 1.1% vs 0.6% expected
US import prices 0.4% vs -0.1% expected
Wednesday 19th:
Japanese BOJ interest rates maintained at <0.5%
Thursday 20th:
US FOMC interest rates maintained at 4.5%
Australian unemployment rate
UK interest rate decision
Friday 21st:
Japanese CPI
Global Market Prices
Global Markets(Source: TradingView)
ASX Sector Healthcare
Healthcare has been one of the hardest-hit sectors. It now shows signs of a potential bounce on the way. It’s one to watch today.
ASX Financials sector index (Source: TradingView)
ASX Stock to Watch: Droneshielc (ASX:DRO)
Droneshield's ramp up continues.
ASX Stocks to Watch (Source: TradingView)
ASX Stock to Watch: Duratec (ASX:DUR)
Duratec appears to be continuing its upward channel after some shakiness. Will this swing up take the stock to new highs?
ASX Stocks to Watch (Source: TradingView)
The Daily Brief is prepared in partnership with Vitti Capital.
