Weekly Recap: Global markets experienced a volatile week
Australian Market (ASX 200)
The Australian share market experienced a volatile week, with the ASX 200 index showing fluctuations influenced by global trade developments and corporate earnings reports. Midweek, the index saw gains, buoyed by optimism over potential easing of U.S.-China trade tensions. However, by Friday, the ASX 200 closed with a modest increase of 0.5%, reflecting investor caution amid ongoing geopolitical uncertainties.
Sector Highlights:
Energy: Energy stocks led the market higher midweek, driven by hopes of a resolution in trade disputes. However, by week's end, the sector faced headwinds due to fluctuating oil prices and concerns over global demand.
Financials: Major banks showed resilience, with Westpac (ASX: WBC) and ANZ (ASX: ANZ) posting gains of 1.1% and 1.6% respectively. Commonwealth Bank (ASX: CBA) also advanced by 0.6%, reflecting investor confidence in the sector's stability .
New Zealand Market (NZX 50)
The New Zealand stock market exhibited a steady performance throughout the week. The S&P/NZX 50 Index closed at 12,421.090 on May 6, reflecting a flat session. However, by May 7, the index rose by 0.61% to 12,496.890, supported by gains in the materials sector.
Economic Indicators:
Employment: The unemployment rate remained steady at 5.1% in the March 2025 quarter, indicating a stable labor market. Annual wage inflation stood at 2.9%, with average ordinary time hourly earnings at $42.79.
Trade Balance: New Zealand's annual trade deficit narrowed to $6.1 billion in March, down from $6.5 billion in February. This improvement was driven by a 0.6% month-on-month increase in goods exports, particularly in dairy and meat products .
U.S. Markets
U.S. equities experienced a volatile week, influenced by trade developments and central bank decisions.
S&P 500: Gained 0.6% on Thursday, closing at 5,663.94. However, for the week, it declined by 1%.
Dow Jones Industrial Average: Rose 0.6% on Thursday to 41,368.45, marking a 0.5% weekly gain.
Nasdaq Composite: Increased by 1.1% on Thursday, ending at 17,928.14, but down 1.3% for the week.
Russell 2000: Climbed 1.8% on Thursday to 2,026.41, achieving a 0.3% weekly increase.
Investor sentiment was bolstered by a new U.S.-UK trade agreement and optimism over upcoming U.S.-China trade talks.
Outlook
Markets will be closely watching the upcoming U.S.-China trade talks in Geneva, which could influence global market sentiment. Additionally, ongoing corporate earnings reports and economic data releases will provide further insights into the market trajectory.