Daily Market Reports | Jun 06 2025
This story features SKYCITY ENTERTAINMENT GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: SKC
The company is included in ASX300 and ALL-ORDS
US markets experienced whipsaw action but ultimately succumbed to the online sledging match between Elon Musk and President Trump, with Tesla shares dragging down Nasdaq and S&P500.
ASX futures appear unfazed, indication a slightly softer start.
| World Overnight | |||
| SPI Overnight | 8546.00 | – 7.00 | – 0.08% |
| S&P ASX 200 | 8538.90 | – 2.90 | – 0.03% |
| S&P500 | 5939.30 | – 31.51 | – 0.53% |
| Nasdaq Comp | 19298.45 | – 162.04 | – 0.83% |
| DJIA | 42319.74 | – 108.00 | – 0.25% |
| S&P500 VIX | 18.48 | + 0.87 | 4.94% |
| US 10-year yield | 4.39 | + 0.03 | 0.66% |
| USD Index | 98.71 | – 0.03 | – 0.03% |
| FTSE100 | 8811.04 | + 9.75 | 0.11% |
| DAX30 | 24323.58 | + 47.10 | 0.19% |
Good Morning, in a world where fact is stranger than fiction!
As if 2025 couldn’t become even more bizarre, the world is watching the de-coupling of the Musk-Trump bromance, with threats flying across respective social media platforms.
The war of words overtook macro fundamentals and leaves investors questioning, what might be next?
What happened overnight: Chris Weston Pepperstone
For a man of 78 years young, Trump has been everywhere in the past 12-24 hours. A call with Xi, a meeting with German Chancellor Merz, a presser in the Oval Office, and managing the emotion of a now very public and progressively bitter breakup of the once big, beautiful bromance.
The call with Xi is arguably the factor that could have had a lasting impact on markets, but while seen as a step in the right direction, the call proved to offer nothing tangible for traders to work with and attention has quickly pushed back to the Trump-Musk war of words.
We saw the selling pick up in our Tesla 24-hour shares in early European trade and then build on Trump’s remark that he was “disappointed in Elon” and more so on Musk’s claims that he essentially won Trump the election, with Musk then taking it to another level with his comments turning outright nasty in a post on X.
The selling in Tesla stock on the day has been wholly impressive with 285m shares traded on the day, the most since Jan 2023, with a sell first, ask questions later’ mentality sweeping through the shareholder base.
In the options space, over 4m put options traded hands, four times the 20-day average. The most actively traded strikes were seen in the US$300, US$290 and US$280 same-day expiries, and there is little doubt this would have played a role in driving the intra-day falls, with dealers hedging their exposure by shorting the stock.
Option dealer flow aside, the more aggressive traders would have been getting set in shorts in this name, as the public spat could get far more personal, keeping any would-be buyers away from the order book, and only galvanizing Trump’s resolve to have the Senate pass his ‘One Big, Beautiful Bill’.
Tesla shareholders are still reeling from the brand destruction from Musk having had a key role in the Trump Administration, and now, from the revenge play and taking it hard to the president. Granted, Musk is dealing with the impact of the change in EV credits in his own unique way, but this fallout is not good for either Trump’s approval rating or Tesla shareholders and the only person who doesn’t seem to realise it is Musk.
Outside of Tesla, Palantir, Lululemon and Broadcom have also seen solid flows and moves on the day, with Nvidia also finding better sellers in the mix.
At an index level, S&P500 futures settled near session lows, and while -0.7% is perfectly manageable for the bulls and those set in long US equity risk positions, the rejection yet again of the 6000 level is telling. The NAS100 underperformed on the day, and we see the index testing the former breakout point, putting longs on notice they may need to manage a further sell-off in the session ahead.
In FX markets, the broad USD has been flat on the day, masking an earlier decline to 98.35, with EURUSD rallying to 1.1495 with the ECB meeting, a cut of -25bps, and Lagarde’s presser suggesting the ECB may be set for a pause in July, and closer to a trough in its easing cycle.
This ultimately resulted in a solid selloff in European govt bonds, with German 2yr bond yields up 8bps. The ECB meeting also collided with a surprising build in the US weekly jobless claims to 249k and US trade data (April), with imports falling -19.9% . While it won’t surprise, it was the biggest drop ever recorded.
US Treasuries sold off on the day, with US 2’s and 10s up 5bp, and driven in sympathy to the moves in the European bond market. On the day, Gold held a strong inverse relationship to the USD, rising to US$3403, but finding better sellers as the DXY recovered to the flat line.
It’s all about US non-farm payrolls from here and an obvious risk that Asia-based traders need to consider pre-positioning for, as they will, the prospect of weekend gapping risk given Trump is now fired up and the risk of him saying something through the weekend that moves markets on the Monday open is elevated.
The consensus from economists is for 126k payrolls, with the unemployment rate eyed unchanged at 4.2%, although traders are fully conditioned to the idea there really aren’t many leading indicators that offer great conviction to help us pre-positioning for the outcome.
The form guide has shown that if we are to see an outlier print (from the consensus estimate) it is more likely we get a big beat in jobs than a number say below 70k, but perhaps ADP payrolls could be a useful guide this time around.
Either way, while the options market doesn’t imply big moves in markets from the NFP print, the US labour market is so essential in underpinning market confidence that we must be prepared and reactive if we were to see an outlier outcome, with bad news being bad for US risk, and good data a positive for risk.
The View: Two Egos Too Big For The Same Screen, Extract Stephen Innes, SPI Asset Management
What started as cautious optimism following the Trump-Xi call ended in a full-blown trading dumpster fire after the Musk-Trump cage match escalated.
Tesla didn’t just get clipped, it got obliterated. A -14% nosedive by the close, wiping out over US$150 billion in market cap, after Trump unleashed a volley on Truth Social, threatening to axe every last federal dime flowing into Elon’s empire. This wasn’t a spat, it was a public breakup with budgetary consequences.
Retail got smoked. Tesla, still the crown jewel of every mom-and-pop dip buyer’s portfolio, imploded under the weight of political fury. And when the most loved stock in retail land breaks, the pain isn’t isolated, it’s contagious. MAG7 names followed suit as traders sold winners to compensate for the losses from Tesla, dragging the Nasdaq into the mud and turning early optimism from the Trump-Xi hotline into a footnote that would soon be forgotten.
The day turned into a cross-asset liquidation. Bonds? Dumped. Bitcoin? Slapped. Gold? Pumped and then rug-pulled. Even the dollar did its best impression of a stunned boxer staggers, pukes, then somehow finishes flat. The 5Y note took the biggest hit, curve flattened hard (2s30s back to 3-week lows), and rate cut odds actually fell because, apparently, chaos isn’t dovish anymore.
Jobless claims jumped. Trade deficit cratered. ECB cut rates, but EURUSD rose. And while all that noise mattered on paper, the real market driver was the soap opera unraveling between Trump and Musk; two egos too big for the same screen.
And in the process, Trump may have handed the Democrats the biggest electoral gift of the decade. The Elon Army, one of the most mobilized, meme-fueled, MAGA-adjacent voting blocs out there, is now looking for a new home. For all the talk of Trump’s base being locked in, this was a self-inflicted wound with real consequences.
From a market lens, this wasn’t just volatility, it was a paradigm wobble. Musk isn’t just a stock. He’s a narrative anchor for a whole generation of growth-chasers. And Trump just blew that narrative to pieces.
By the close, there wasn’t enough duct tape left to hold together the early “handshake vibes” from the Trump-Xi call.
The Dow limped down -108 pts (-0.3%), the S&P500 shed -0.5%, and the Nasdaq took the brunt of it, down -0.8%, with traders messaging each other the same verdict: “what a shitshow.”
Markets don’t like chaos without compensation.
Tonight’s/Tomorrow’s NFP might bring some much-needed macro clarity, but does it matter?
Corporate news in Australia
-SkyCity Entertainment ((SKC)) is suing Fletcher Building ((FBU)) for $NZ330 million in damages for what it claims are unacceptable delays and “gross negligence” in the construction of a convention centre in New Zealand.
-Catapult Group International ((CAT)) has acquired MIT spin out Perch for -$28m to enhance AI athlete tracking.
-L1 Capital has acquired 16.85% of Platinum Capital with further Platinum Asset Management ((PTM)) merger discussion.
-Tetratheri is looking to raise $25m with an ASX IPO to fund its “medical lego” device, and is backed by Xero’s ((XRO)) Rod Drury.
-BHP Group ((BHP)) is considering re-entering the nickel industry with a US$1bn mine in Tanzania.
On the calendar today:
-EZ 1Q GDP
-EZ April Retail sales
-US May Average Hrly earnings
-US May NFP
-US May Unemployment
FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 3376.50 | – 20.02 | – 0.59% |
| Silver (oz) | 35.80 | + 1.14 | 3.27% |
| Copper (lb) | 4.91 | + 0.01 | 0.24% |
| Aluminium (lb) | 1.12 | – 0.00 | – 0.42% |
| Nickel (lb) | 6.94 | + 0.00 | 0.03% |
| Zinc (lb) | 1.22 | – 0.01 | – 0.47% |
| West Texas Crude | 63.26 | + 0.48 | 0.76% |
| Brent Crude | 65.24 | + 0.41 | 0.63% |
| Iron Ore (t) | 95.70 | – 0.56 | – 0.58% |
The Australian share market over the past thirty days
| Index | 05 Jun 2025 | Week To Date | Month To Date (Jun) | Quarter To Date (Apr-Jun) | Year To Date (2025) |
|---|---|---|---|---|---|
| S&P ASX 200 (ex-div) | 8538.90 | 1.24% | 1.24% | 8.87% | 4.65% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| APA | APA Group | Downgrade to Trim from Hold | Morgans |
| ASB | Austal | Downgrade to Hold from Buy | Bell Potter |
| BKW | Brickworks | Downgrade to Hold from Accumulate | Ord Minnett |
| GNC | GrainCorp | Downgrade to Neutral from Buy | UBS |
| IEL | IDP Education | Upgrade to Buy from Neutral | UBS |
| Downgrade to Equal-weight from Overweight | Morgan Stanley | ||
| Downgrade to Hold from Buy | Morgans | ||
| Downgrade to Hold from Buy | Ord Minnett | ||
| IFL | Insignia Financial | Upgrade to Buy from Neutral | UBS |
| JDO | Judo Capital | Upgrade to Outperform from Neutral | Macquarie |
| Downgrade to Accumulate from Buy | Morgans | ||
| LYC | Lynas Rare Earths | Upgrade to Accumulate from Hold | Ord Minnett |
| MAF | MA Financial | Downgrade to Accumulate from Buy | Morgans |
For more detail go to FNArena’s Australian Broker Call Report, which is updated each morning, Mon-Fri.
All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website. Click here. (Subscribers can access prices on the website.)
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