Morning Wrap: ASX 200 to rise, US dollar tumbles as Trump holds off on tariffs
ASX 200 futures are up 25pts (0.30%) as of 8:30 am 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
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 | 0.00% |
 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 | 0.00% |
VIX | 15.81 | -1.00% |
S&P 500 SESSION CHART
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)
