Market Wraps

Morning Wrap: ASX 200 to rise, US dollar tumbles as Trump holds off on tariffs

Tue 21 Jan 25, 8:32am (AEDT)

ASX 200 futures are up 25pts (0.30%) as of 8:30 am AEDT.

In a nutshell: 

  • US market closed for Martin Luther King Jr day (any US-related overnight data will reflect the previous session)

  • Trump sworn in as the 47th president of the US

  • US dollar index records largest one-day drop since Nov-23 after Trump said he will not imposed tariffs after inauguration

Let's dive in.

Overnight Summary

Tue 21 Jan 25, 8:21am (AEDT)

Name Value % Chg
Major Indices
S&P 500 5,997 +1.00%
Dow Jones 43,488 +0.78%
NASDAQ Comp 19,630 +1.51%
Russell 2000 2,276 +0.40%
Country Indices
Canada 25,172 +0.41%
China 3,244 +0.08%
Germany 20,990 +0.42%
Hong Kong 19,926 +1.75%
India 77,073 +0.59%
Japan 38,903 +1.17%
United Kingdom 8,521 +0.18%
Name Value % Chg
Commodities (USD)
Gold 2,731.8 -0.61%
Iron Ore 101.21 -
Copper 4.3175 -1.17%
WTI Oil 76.89 -1.27%
Currency
AUD/USD 0.6272 +1.28%
Cryptocurrency
Bitcoin (USD) 103,654 -2.12%
Ethereum (AUD) 5,294 -1.00%
Miscellaneous
US 10 Yr T-bond 4.609 -
VIX 15.81 -1.00%

S&P 500 SESSION CHART

SPX
S&P 500 daily chart (Source: TradingView)

OVERNIGHT MARKETS

  • US market was closed to observe Martin Luther King Jr Day

  • European markets largely higher, with the pan-European Stoxx 600 up 0.05% for its fourth straight positive session

  • Markets largely on standby as Trump is sworn in to office

  • US Dollar Index dipped 1.2% to a two-week low after Trump said he will not impose trade tariffs right after his inauguration

  • House speaker Nancy Pelosi discloses a number of call options including $500,000 in Alphabet, $500,000 in Nvidia, $1m in Vista Corp and $100,000 in Tempus AI

  • Investors worry hefty tariffs and mass deportations that Trump has proposed will reaccelerate inflation (NYT)

  • Hedge fund managers pocketed nearly half of investment gains as fees (FT)

  • Profit growth at US firms likely to beat European peers by a wide margin this earnings season, says JPMorgan (BBG)

STOCKS

  • European carmakers braced for tough 2025 even as more EVs set to launch (FT)

  • Chinese property developer Country Garden plans deal with creditors (AP)

CENTRAL BANKS

  • Majority of BOJ board members likely to vote for rate hike next week (BBG)

  • ECB's Schnabel says well on track to reach 2% inflation target this year (BBG

  • Bank of Korea cuts FY growth outlook, President Yoon formally arrested over martial law decree (FT)

TRUMP

  • Trump to be inaugurated today, expected to sign flurry of executive orders (AX)

  • China mulls trade-offs in its retaliation against Trump tariffs (RT)

  • TikTok back online in US after company says Trump provides necessary "clarity and assurance" (RT)

  • After Gaza ceasefire, Trump's foreign policy will focus on buying Greenland and ending Ukraine war (RT)

ECONOMY

  • IMF revises up growth projections for US, China (IMF)

  • Japan machinery orders in November beat estimates (Reuters)

  • German producer prices up 0.8% year-on-year in December, below market expectations of 1.1% (Reuters)

ASX TODAY

  • BHP reports 2Q25 production, iron ore production of 66.2Mt vs. 65.7Mt consensus (BHP)

  • Chemist Warehouse franchisees considering selling down holdings after 12-Feb merger, franchisees own a total of ~A$1bn of shares (AFR)

  • Hub24 reports 2Q25 funds under administration up 7% QoQ to $120.9bn, remains confident in meeting FY26 FUA target of $115-123bn (HUB)

  • Northern Star reports 2Q25 production, reaffirms FY25 production guidance (NST)

  • Wilson Asset Management increases stake in Australian Unity Office Fund from 5.90% to 16.52% (AOF)

  • Yancoal reports Q4 coal production unchanged YoY at 9.7Mt, increased cash balance by $480m to $2.46bn ($7.9bn market cap), all metrics within guidance (YAL)

WHAT TO WATCH TODAY

  • Trump: We’re back in a market where a single comment from Trump can send sectors soaring or plummeting. His recent remark about holding off on tariffs has already caused the US dollar to drop sharply. With speculation that he could sign up to 100 executive orders, the next 24 hours could see a lot of volatility.

BROKER MOVES

  • Computershare downgraded to Neutral from Overweight; target up to $34 from $30.50 (JARD)

  • Origin Energy downgraded to Underweight from Neutral; target up to $10.65 from $9.90 (JARD)

  • Venita Services upgraded to Outperform from Hold; target cut to $3.90 from $4.45 (CSLA)

  • Woodside Energy upgraded to Overweight from Neutral; target up to $27 from $26.25 (JARD)

Key Events

Stocks trading ex-dividend: 

  • Tue 21 Jan: Spheria Emerging Companies (SEC) – $0.035

  • 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: Charter Hall Social Infrastructure REIT (CQE)

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEDT):

  • 5:00 pm: UK Unemployment Rate (Nov)

  • 11:30 pm: Canada Inflation (Dec)

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.

Get the latest news and insights direct to your inbox

Subscribe free