Next Week At A Glance – 14-17 Apr 2025

This story features NEXTDC LIMITED, and other companies. For more info SHARE ANALYSIS: NXT

For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

The week that was in Australian Finance:

-Well, what a week. The understatement of the year, so far. Markets have been on the proverbial “big dipper” roller coaster as the full weight of reciprocal tariffs continues to tsunami its way through equity, bond and currency markets. Uncertainty and volatility are the playbook for April.

-On balance, the ASX200 is finding some love over Friday but is likely to still end down by over -1.5% for the week, after rallying 4.5% on Thursday, the strongest single-day performance since June 2020.

-With President Trump blinking and deferring the imposition of reciprocal tariffs for 90 days, markets breathed a sigh of relief, but reality sank in, they are still out there in the future, like the Sword of Damocles, unless the US shifts its hard line stance in negotiations.

-Nigel Green of deVere Group summed up the situation well: “In short, even if tariffs vanish tomorrow, their ghost will linger. The appetite for risk has been dulled. Discount rates are rising. Multiples are compressing. It will take much more than a temporary pause to rebuild the deep foundations of confidence that global markets once took for granted.”

-Back home, the Energy sector took the full brunt of the selloff in Brent Crude, which is around US$63.50/bbl compared to over US$74/bbl a month ago. The sector was down almost -7%. Financials also declined by over -2.5%, and Information Technology rallied on the Nasdaq recovery on Wednesday. Meanwhile, Healthcare and plasma giant CSL were caught in uncertainty over possible pharmaceutical tariffs. The sector fell over -5.5%.

-Gold continues to be the metal du jour, at over US$3200/oz, with ongoing selling pressure on US Treasuries and the US dollar. No wonder those gold coins are being snapped up at auction houses.

-Analysts have been rolling up their sleeves and crunching the earnings numbers for possible tariff and slowing economic growth impacts, as well as the recalibration of share prices. Lots of upgrades and downgrades this week to snack on over your morning coffee!

-The tariff travails look like they have a way to run yet, so be alert but not yet alarmed, and keep an eye on central banks if the financial plumbing starts to go wonky. Mercurial Trump may backflip again… or not!

Have a great weekend from the FNArena team.

Corporate news in the week that was:

-Craig Scroggie, CEO of Next DC ((NXT)) denied there is over-capacity in data centres following reports Microsoft is reconsidering projects.

-Nuix ((NXL)) points to slower growth due to global uncertainty, though strong cashflow is still anticipated.

-Major investors push for James Hardie Industries ((JHX)) to review Azek takeover.

-Telix Pharmaceuticals ((TLX)) states US tariffs will not impact supply chains or its operations.

-Star Entertainment ((SGR)) accepts buyout worth $300m from Bally’s.

-CoStar’s bid ($2.8bn) for Domain Holdings ((DHG)) is at risk due to market uncertainty.

-Xero ((XRO)) backs CEO pay package of $25m amid growing concerns over the company’s US expansion.

-Cochlear ((COH)) confirms its hearing implants will remain duty-free in the US.

-Zip Co ((ZIP)) announces $50m buyback.

-Woolworths Group ((WOW)) invests -$70m in Hola Health.

-TPG Telecom ((TPG)) buys a majority stake in Five Good Friends.

-ACCC approves Woolworths Group’s ((WOW)) acquisition of ready meals maker Beak & Johnston.

-Mineral Resources ((MIN)) is considering the sale of its Wodgina lithium operations alongside an equity raising due to debt and liquidity concerns.

-Healthscope is looking to end its involvement with the Northern Beaches Hospital due to debt and operational issues.

-Backed by AustralianSuper, Federation Mining is preparing for an ASX IPO following the acquisition of Siren Gold.

-EBOS Group ((EBO)) is placed into a trading halt for a $250m share placement and retail offer to fund two bolt-on acquisitions.

Corporate Calendar

For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)

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