The Overnight Report: Back To Tariffs, Maybe

This story features SYRAH RESOURCES LIMITED, and other companies. For more info SHARE ANALYSIS: SYR

The local market looks set for a new all-time record high today but then US President Trump just confirmed he intends to follow-through with 25% tariffs on all goods from Mexico and Canada as per February 1.

Although the exact media quote is: “We may or may not. We’re going to make that determination probably tonight,”

Overnight, weakness in Microsoft shares post a quarterly that didn’t 100% satisfy the market’s expectation masked broad based investor optimism that saw most stocks gain on the day.

Atlassian’s quarterly result was good for a 16% jump in the share price.

A weaker USD helped boost investor appetite. The Australian dollar fell -0.6% to US62.04c.

The yield on the US 10y note fell -1bp to 4.51%. Oil was fairly steady, with WTI futures rising 0.3% to trade at USD72.8/bbl. They have risen further on the latest Trump-related news. Gold rose 1.2% to USD2,793.0/oz.

In Australia today, the calendar shows quarterly updates are due from Origin Energy and Syrah Resources ((SYR)), while ResMed has just published its Q2 financial report.

https://fnarena.com/index.php/2025/01/30/resmed-another-positive-quarterly-surprise/

Not in the calendar are the fact the $760m takeover offer from Charter Hall ((CHC)) and superannuation fund Hostplus for pub landlord Hotel Property Investments ((HPI)) is set to close today.

Genesis’ takeover vehicle has extended its offer period for a $311m takeover bid of ASX-listed Pacific Smiles ((PSQ)) to February 11. The offer period was set to end yesterday.

Macquarie Group ((MQG)) has approved a commitment of $162m to ASX-listed Strike Energy ((STX)) to refinance the oil and gas explorer’s existing debt.

By Chris Weston, Head of Research, Pepperstone

Good morning.

The percentage changes and trading ranges across markets have been fairly well contained, but net net it’s a day of green on screen across the risk spectrum, with small buying in US Treasuries and a modest unwind of USD and CHF longs.

Big levels have been taken out in gold, which reached a new all-time high of US$2798.29/oz, before better supply kicked in, with price consolidating through the latter stages in US trade.

EU/UK equities indices look set to close out what has been a blistering month of January, with the CAC40, FTSE100, DAX40, IBEX35 and EU Stoxx 50 all breaking to new all-time or multi-year highs.

US equity indices aren’t seeing the same rip higher that we’ve seen of late in the likes of the DAX40, but the bulls are certainly holding pocket aces, and new all-time highs in the Dow, and S&P500 are now well within reach.

In the US small-cap space, the Russell 2k (+1.6%) looks perky and is outperforming the large-cap indices – a sign of confidence to hold equity risk.

The buying within S&P500 sectors has been broad-based with 67% of S&P500 companies higher on the day, with utilities, comms services, REITs, health care and financials leading the market higher.

Tech has been the laggard, with Microsoft and Nvidia subtracting index points and weighing on the NAS100. Apple gets the focus from here, given they are set to release earnings after-market with options implying a -/+4.4% move on the day.

We look toward the Asia open, and while China is still offline for Lunar NY, it’s the ASX200 that garners increased focus, with our opening call of 8533 suggesting we see a new ATH in the cash index, with the local market set to close out the month of January on a high.

Consumer discretionary names are where the momentum sits right now, but the banks look in fine form too, with the ASX200 banking sector set to print a new high on open.

On the calendar today:

-New Zealand ANZ Consumer Confidence

-Australia 4Q PPI

-Australia Dec Private Sector Credit

-Japan Dec Industrial Production

-Japan Dec Jobless Rate

-China Jan Caixin PMI Manufacturing

-China Public Holiday

-US 4Q Employment Cost Index

-US Dec PCE Deflator

-Origin Energy ((ORG)) Quarterly update

-ResMed ((RMD)) Q4 earnings report

-Sayona Mining ((SYA)) Quarterly update

(and more)

FNArena’s four-weekly calendar: https://fnarena.com/index.php/financial-news/calendar/

Corporate news in Australia:

-National Australia Bank ((NAB)) is opening 29 branches on Saturdays and considering Sunday operations

-Veris ((VRS)) acquires Spatial Vision for -$3m

The Australian share market over the past thirty days

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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