ASX Poised for Modest Decline Amid S&P 500 Correction and Executive Changes
Australian shares are set to open lower as the S&P 500 enters correction territory, while Myer redefines its executive team and other key market movements unfold.
Australian shares are anticipated to open slightly lower following a sell-off on Wall Street that has placed the S&P 500 in correction mode.
ASX 200 futures indicate a decrease of 0.2 percent, or 12 points, suggesting a continuation of the index’s recent three-day decline.
As of the latest close, the S&P 500 registered at 5521, marking its lowest point since September and representing a 10 percent drop from its February peak.
All eleven sectors within the index closed in negative territory, with consumer stocks among the most significantly impacted.
This downturn is reflected in historical data, which suggests that such a significant decline in the S&P 500 would constitute the seventh-fastest correction since 1929, with three of the fastest corrections occurring during Donald Trump’s presidency.
Overnight, Trump threatened to implement 200 percent tariffs on alcohol imported from the European Union following the bloc’s imposition of a 50 percent tariff on American whiskey.
This increase in tariffs follows a 25 percent tariff that was recently placed on all steel and aluminum imports to the US.
In the commodities market, oil prices experienced a decline, attributed to an oversupply projection from the International Energy Agency, which suggested weakening demand due to the tariffs.
Gold prices reached a new peak of $2990 per ounce, propelled by heightened demand for safe-haven assets amid rising trade tensions.
Technology stocks were heavily affected, with Meta Platforms, Inc. leading the major declines, dropping 4.7 percent.
Apple Inc. saw a decrease of 3.4 percent, while Tesla Inc. fell by 3 percent, and Atlassian Corporation Limited dropped 8.1 percent in a single month, representing a total loss of 34 percent.
In domestic corporate news, Myer Holdings Limited has restructured its executive leadership team after integrating a portfolio of brands from Premier Investments.
Chief Financial Officer Matt Jackman has resigned after just one year with the company.
Medical manufacturer Ansell Limited has appointed Brian Montgomery, formerly the chief strategy officer at GE HealthCare, as its new CFO, replacing Zubair Javeed.
Liontown Resources Limited reported a narrowing of losses in its half-year results ending in December, as the lithium miner prepares to commence underground production operations in the fourth quarter.
Catalyst Metals Limited has initiated production at its Plutonic East mine in Western Australia, successfully extracting ore on schedule and within budget.
Additionally, Rio Tinto has finalized a renewable energy agreement that supports a $2 billion investment in solar farms and battery facilities in central Queensland.
Market highlights include ASX futures pointing to a downturn of 12 points, while commodity prices showed varying movements:
- Australian dollar decreased by 0.6 percent to US62.82 cents.
- Bitcoin price dropped by 2.9 percent to $80,388.
- On Wall Street, the Dow Jones Industrial Average fell by 1.3 percent; the S&P 500 declined by 1.4 percent; the NASDAQ was down by 2 percent.
- The Volatility Index (VIX) rose by 0.46 points to 24.69.
- Gold prices increased by 1.6 percent to $2982.39 per ounce.
- Brent Crude Oil prices decreased by 1.6 percent to $69.84 per barrel.
- Iron ore prices increased by 1.5 percent to $102.20 per tonne.
- The 10-year government bond yield stood at 4.27 percent in the US and 4.41 percent in Australia.
ASX 200 futures indicate a decrease of 0.2 percent, or 12 points, suggesting a continuation of the index’s recent three-day decline.
As of the latest close, the S&P 500 registered at 5521, marking its lowest point since September and representing a 10 percent drop from its February peak.
All eleven sectors within the index closed in negative territory, with consumer stocks among the most significantly impacted.
This downturn is reflected in historical data, which suggests that such a significant decline in the S&P 500 would constitute the seventh-fastest correction since 1929, with three of the fastest corrections occurring during Donald Trump’s presidency.
Overnight, Trump threatened to implement 200 percent tariffs on alcohol imported from the European Union following the bloc’s imposition of a 50 percent tariff on American whiskey.
This increase in tariffs follows a 25 percent tariff that was recently placed on all steel and aluminum imports to the US.
In the commodities market, oil prices experienced a decline, attributed to an oversupply projection from the International Energy Agency, which suggested weakening demand due to the tariffs.
Gold prices reached a new peak of $2990 per ounce, propelled by heightened demand for safe-haven assets amid rising trade tensions.
Technology stocks were heavily affected, with Meta Platforms, Inc. leading the major declines, dropping 4.7 percent.
Apple Inc. saw a decrease of 3.4 percent, while Tesla Inc. fell by 3 percent, and Atlassian Corporation Limited dropped 8.1 percent in a single month, representing a total loss of 34 percent.
In domestic corporate news, Myer Holdings Limited has restructured its executive leadership team after integrating a portfolio of brands from Premier Investments.
Chief Financial Officer Matt Jackman has resigned after just one year with the company.
Medical manufacturer Ansell Limited has appointed Brian Montgomery, formerly the chief strategy officer at GE HealthCare, as its new CFO, replacing Zubair Javeed.
Liontown Resources Limited reported a narrowing of losses in its half-year results ending in December, as the lithium miner prepares to commence underground production operations in the fourth quarter.
Catalyst Metals Limited has initiated production at its Plutonic East mine in Western Australia, successfully extracting ore on schedule and within budget.
Additionally, Rio Tinto has finalized a renewable energy agreement that supports a $2 billion investment in solar farms and battery facilities in central Queensland.
Market highlights include ASX futures pointing to a downturn of 12 points, while commodity prices showed varying movements:
- Australian dollar decreased by 0.6 percent to US62.82 cents.
- Bitcoin price dropped by 2.9 percent to $80,388.
- On Wall Street, the Dow Jones Industrial Average fell by 1.3 percent; the S&P 500 declined by 1.4 percent; the NASDAQ was down by 2 percent.
- The Volatility Index (VIX) rose by 0.46 points to 24.69.
- Gold prices increased by 1.6 percent to $2982.39 per ounce.
- Brent Crude Oil prices decreased by 1.6 percent to $69.84 per barrel.
- Iron ore prices increased by 1.5 percent to $102.20 per tonne.
- The 10-year government bond yield stood at 4.27 percent in the US and 4.41 percent in Australia.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
