Morning Wrap: ASX 200 to fall, S&P 500 extends losing streak, Trump threatens 50% tariffs on EU

ASX 200 futures are down 22pts (-0.35%) as of 8:30 am AEST.

In a nutshell:

• S&P 500 fell for a fourth straight session, with tech and growth-oriented sectors leading to the downside

• Trump threatened EU with 50% tariffs, says he would extend deadline for these tariffs until 9 July

• Uranium, gold and copper equities rallied on higher spot prices

Let's dive in.

S&P 500 SESSION CHART

S&P 500 lower, off worst levels (Source: TradingView)

OVERNIGHT MARKETS

• Major US benchmarks finished lower but off worst levels

• Growth-related sectors broadly lower, all Mag-7 stocks declined, with Apple down 3.0% on tariff concerns

• US weekly recap: Russell 2000 (-3.47%), S&P 500 (-2.61%), Nasdaq (-2.47%), Dow (-2.47%)

• Investors increasingly ignoring Trump's tariff announcements, believing tariff threats will be short-lived (BBG)

• Big investors diversify bond portfolios, seeking exposure outside the US amid Trump's trade war and rising deficits (FT)

• Bond market volatility a signal to governments that debt will be more expensive to finance (Reuters)

• Widening risk premiums on lower-rated junk bonds may be signalling red flag about US economy (BBG)

STOCKS

• Nvidia to launch new Blackwell AI chip for China, mass production to start as early as June (RT)

• Foxconn progressing US$1.5bn Apple component plant in India despite Trump's demand for to return manufacturing to US (FT)

• Apple planning release of smart glasses by end of 2026 with camera, microphone and speaker capability (BBG)

• Major US banks considering a joint stablecoin to enhance transaction speed to compete with crypto industry (WSJ)

• House budget bill could halt the US clean energy boom by ending tax credits early (FT)

CENTRAL BANKS

• Supreme Court order signals Fed may be shielded from Trump's ability fire officials at independent agencies (AX)

• China lowers deposit rate ceilings to protect bank profits (RT)

• BOJ Governor Ueda refrained from indicating action in bond market after yields on super-long dated securities hit a reord high (BBG)

• ECB's Stournaras sees rate cut in June and then a pause (BBG)

TARIFFS

• Trump says negotiations with EU are going nowhere, threatens 50% tariff starting 1-Jun (CNBC)

• US trade in goods and services with EU accounted for ~4.9% of US GDP in 2024 with pharma, cars and machinery the standouts (WSJ)

• Trump threatens 25% tariff on iPhones, unless manufacturing takes place domestically (FT) 

• EU will not scrap VAT, change food sanitation standards or cut back regulation of digital services and social media companies as part of any deal with US (NYT)

• Trump's directive on EU and iPhones have dashed investor hopes that his trade wars were calming down (BBG)

• Japan signals intent to reach US tariff deal by June (BBG)

• US importers pay record US16.5bn as April tariff bill lands (BBG)

• Southeast Asian countries face pressure to choose sides in the US-China trade war, officials warn (FT)

ECONOMY

• UK retail sales jump 1.2% in April, marking fourth consecutive monthly rise and above economist expectations, driven by good weather (BBG)

• UK consumer confidence rebounds to -20 in May (vs. -22 expected and -25 a month ago) as economic outlook improves but inflation risks persist (BBG)

• German GDP defies expectations, up 0.4% in Q1, driven by front-loading exports due to US tariffs (BBG)

• Japan core inflation jumps to 3.5% in April, driven by soaring rice pries and energy costs (BBG)

• Trump's 'big, beautiful bill' faces fresh obstacles in Senate (BBG)

• Trump's tax bill success may backfire on Republicans, as significant cuts and rising debt could alienate voters and investors (FT)

ASX TODAY

• Horizon Minerals raises $30m, upsized the original $25m raise (HZN)

• Genesis Minerals acquires Laverton Gold Project from Focus Minerals for $250m cash, funded from existing cash and upsized finance facility (GMD)

• Origin Energy guides FY25 energy market underlying EBITDA of $1.3-1.4bn vs. prior $1.1-1.4bn, expects share of Octopus Energy FY25 underlying EBITDA to be -$0-100m vs. previous guidance of up to $100m (ORG)

• Northern Star, Evolution Mining and Regis Resources among potential suitors running the ruler on Bellevue Gold (The Aus)

• SGH showing interest in Whyalla steelworks, management visited and checked out operations, but no decision has been made on a formal bid (AFR)

• Wisetech to announce deal to acquire e2open for $2.6bn this week (AFR)

WHAT TO WATCH TODAY

• Uranium: Strong move for uranium equities overnight, with the Global X Uranium ETF up 11..6% after Trump announced plans to invoke wartime powers, preparing to sign executive order to revive US nuclear industry. Local names already moved on Friday, with Boss Energy, Paladin and Deep Yellow up 8-12%.

• Gold, copper: Strong moves for both commodities overnight, driving the related miner ETFs up 2.7% and 2.9% respectively.

BROKER MOVES

Broker data is still pending. Apologies for the inconvenience.

Stocks trading ex-dividend: 

• Mon 26 May: Dalrymple Bay Infrastructure (DBI) – $0.059, Embark Early Education (EVO) – $0.015, Newmont Corporation (NEM) – $0.274,

• Whitefield Industrials (WHF) – $0.105

• Tue 27 May: None

• Wed 28 May: None

• Thu 29 May: 360 Capital Mortgage REIT (TCF) – $0.06, Technology One (TNE) – $0.066

• Fri 30 May: Pengana International Equities (PIA) – $0.014

Other ASX corporate actions today: 

• Dividends paid: None

• Earnings: Elders (ELD), Findi (FND)

• IPOs: None

• AGMs: None

Economic calendar (AEST):

No major economic announcements.