Market Wraps

Morning Wrap: ASX 200 to rise, S&P 500 and Dow rally + Woodside, Iluka Resources quarterlies

Wed 22 Jan 25, 8:38am (AEDT)

ASX 200 futures are up 32pts (0.38%) as of 8:30 am AEDT.

In a nutshell:

  • US stocks experienced a broad-based rally on Trump optimism

  • Markets are getting flogged with Trump headlines (both good and bad)

  • Gold and uranium equities rallied overnight plus quarterlies from a long list of local miners (including Woodside and Iluka Resource)

Let's dive in.

Overnight Summary

Wed 22 Jan 25, 8:20am (AEDT)

Name Value % Chg
Major Indices
S&P 500 6,049 +0.88%
Dow Jones 44,026 +1.24%
NASDAQ Comp 19,757 +0.64%
Russell 2000 2,318 +1.86%
Country Indices
Canada 25,282 +0.44%
China 3,243 -0.05%
Germany 21,042 +0.25%
Hong Kong 20,107 +0.91%
India 75,838 -1.60%
Japan 39,028 +0.32%
United Kingdom 8,548 +0.33%
Name Value % Chg
Commodities (USD)
Gold 2,756.8999 +0.92%
Iron Ore 101.21 -
Copper 4.3355 +0.42%
WTI Oil 76.09 -1.04%
Currency
AUD/USD 0.6268 -0.06%
Cryptocurrency
Bitcoin (USD) 106,244 +2.50%
Ethereum (AUD) 5,282 -0.24%
Miscellaneous
US 10 Yr T-bond 4.574 -0.76%
VIX 14.98 -5.25%

US Sectors

Wed 22 Jan 25, 8:20am (AEDT)

SECTOR % CHG
Industrials +2.03%
Real Estate +1.83%
Health Care +1.65%
Utilities +1.55%
Materials +1.26%
Consumer Discretionary +1.01%
SECTOR % CHG
Communication Services +0.92%
Financials +0.84%
Consumer Staples +0.48%
Information Technology +0.38%
Energy -0.64%

S&P 500 SESSION CHART

SPX
S&P 500 gapped up, trended higher to close at best levels (Source: TradingView)

OVERNIGHT MARKETS

  • Major US benchmarks finished higher and at best levels

  • S&P 500 above the 6,000 level for the first time since late December

  • Equal-weight S&P 500 outperforming the official benchmark by 28 bps, signaling strong breadth

  • Relatively claim session despite an avalanche of Trump news, including less-than-feared tariff developments, ramp up in US energy production,

  • Markets jolted by Trump's 25% tariff warning to Canada and Mexico (FT)

STOCKS

  • Apple iPhones dived 18.2% in China during the December quarter, with Huawei taking top spot (BBG)

  • Williams-Sonoma CEO says tariff threats have caused company to slash China exposure (YH)

  • Adidas quarterly beat driven by sustained strength for retro sneakers, shrinking Yeezy stockpile (BBG)

  • Huawei seeks to eat into market share in AI chips from Nvidia in China (FT)

BOFA FUND MANAGER SURVEY

  • Investors remain bullish on US stocks and dollar, bearish in most other assets

  • Most underweight bonds since October 2022

  • Sentiment fell slightly, suggesting some froth has eased

  • Cash levels unchanged at 3.9%, lowest since June 2021

  • If concerns over tariffs and disorderly bonds turn out to be unfounded, assets that have lagged the US are likely to play catch-up

  • European equity allocations experienced second largest jump in the past 25 years

  • Global growth expectations remain tepid (down 15 percentage points MoM to net -8%), though 26% expect global economic boom, highest since April 2022

  • Inflation expectations jumped to highest level since March 2022

TRUMP

  • Donald Trump inaugurated as 47th US president on Tuesday, vowing a 'golden age' for America and outlining policy actions he intended to take immediately (BBG)

  • Trump flags 25% tariffs on Mexico and Canada from 1-Feb (BBG)

  • Trump calls for China trade investigation instead of immediate tariffs (BBG)

  • Trump declares national energy emergency to ramp up oil output (RT); 

  • Trump threatens tariffs on Europe unless it buys more American oil (BBG)

  • Trump gives 75 day reprieve for TikTok (BBG)

  • US withdrawn from Paris climate deal (RT)

  • Trump revokes Biden's 50% EV target, freezes unspent charging funds (BBG)

  • Trump to announce US$500bn in private sector investment to build AI infrastructure (CBS)

ECONOMY

  • Canada December inflation cools to 1.8% vs. 1.9% consensus on sales tax relief, markets bet 80% likelihood of 25 bp cut next week (RT)

  • UK unemployment ticks up to 4.4% vs. 4.3% consensus, wages still holding up (RT)

Industry ETFs

Wed 22 Jan 25, 8:25am (AEDT)

Name Value % Chg
Commodities
Uranium 29.19 +4.14%
Gold Miners 37.63 +2.39%
Silver 28.0162 +1.47%
Copper Miners 40.41 +1.46%
Steel 61.2702 +0.92%
Lithium & Battery Tech 42.22 -0.14%
Strategic Metals 42.57 -0.63%
Industrials
Aerospace & Defense 156.52 +3.23%
Global Jets 26.8 +2.33%
Construction 82.525 +1.88%
Agriculture 26.92 +1.20%
Healthcare
Biotechnology 136.1 +2.60%
Name Value % Chg
Cryptocurrency
Bitcoin 25.8 +1.22%
Renewables
CleanTech 6.96 -0.14%
Hydrogen 22.865 -0.93%
Solar 33.635 -2.20%
Technology
Robotics & AI 33.98 +2.88%
Sports Betting/Gaming 19.644 +2.60%
Cybersecurity 33.1 +1.88%
Cloud Computing 24.73 +1.81%
Electric Vehicles 24.04 +1.61%
FinTech 32.54 +1.21%
Semiconductor 232.45 +1.18%
E-commerce 29.04 +0.90%
Video Games/eSports 84.45 +0.60%

ASX TODAY

  • Chalice Mining appoints Dan Brearly, former General Manager at Evolution Mining, as COO (CHN)

  • Endeavour’s separation from Woolworths could cost up to $570 million (AFR)

  • Iluka reports Q4 Z/R/SR production of 129.4kt vs. 116.8kt consensus (ILU)

  • Paladin Energy reports Q2 net cash from ops of $43.3m, production for the quarter was in-line with expectations (PDN)

  • Pilbara Minerals acquisition of Latin Resources approved by Supreme Court of WA (LRS)

  • Regal Partners reports 31-Dec FUM of $18.02bn, up 4.5% from the previous quarter (RPL)

WHAT TO WATCH TODAY

  • Trump: We’ve returned to the kind of market where one Trump comment can send markets ripping or dipping. On Tuesday, the ASX 200 was up 1.26% at 11.16 am. When Trump threatened to impose 25% tariffs on Mexico and Canada, the market was trading up just 0.20% by 12:00 pm but bounced to a 0.66% gain by close

  • Uranium: Uranium ETF rallied 4.1% overnight and finished at best levels. This could see some strong price action for local names, many of which are heavily shorted

  • Gold: Gold rallied 1.1% overnight and within 2% of all-time highs. The VanEck Gold Miners ETF finished 2.3% higher (off session highs of 3.2%). Further gold momentum should continue to benefit local names, many of which have rallied 10-15% in the past couple of weeks

  • Hub24: I made an error yesterday that confused Hub's total FUA for 2Q25 ($129.0bn) vs. its platform FUA ($98.9bn). The platform FUA is the key number here, which was 1.1% ahead of Macquarie estimates of $97.7bn and tracking towards the company's FY26 goal of $115-123bn

BROKER MOVES

  • Hub24 upgraded to Buy from Hold with $73 target (OM)

Key Events

Stocks trading ex-dividend: 

  • Wed 22 Jan: Leo Lithium (LLL) – $0.505

  • Thu 23 Jan: Mirrabooka Investments (MIR) – $0.045

  • Fri 24 Jan: None

Other ASX corporate actions today: 

  • Dividends paid: Eildon Capital (EDC)

  • Listing: None

  • Quarterly earnings: Iluka Resources (ILU), Woodside Energy (WDS)

  • AGMs: None

Economic calendar (AEDT):

No major economic announcements.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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