Market update: 3 June 2025
While global markets remain sensitive to trade headlines, the ASX 200 climbed 0.9% this week with strength across most sectors. Locally, April inflation data showed that price growth has largely settled within the RBA’s target range, helping support investor confidence. A more dovish tone from the central bank following its May meeting has markets leaning towards another interest rate cut as soon as July. Technology led sector gains, buoyed by Wisetech’s 7.1% lift after announcing the acquisition of US supply chain platform E2Open.
In the US, equity markets rebounded following news that President Trump would delay a 50% tariff on EU imports. Despite these positive signals, concerns remain over the fiscal impact of the proposed “Big Beautiful Bill” as US budget deficits are forecast to exceed 6% over the next two years.
European markets traded in the green this week, supported by signs of cooling inflation in Spain and Italy. This has bolstered expectations for another rate cut when the ECB meets next week. Optimism also grew on the back of progress in US-EU trade talks, easing fears of further tariffs. Meanwhile, Japanese equities closed higher after constructive discussions between Japan’s Prime Minister Ishiba and President Trump, and stronger-than-expected inflation data, which pushed the yen to a two-week high.
Chinese markets, however, ended the week under pressure, with the Hang Seng down 1.3%. Ongoing trade uncertainty and news of revoked student visas by the US added to investor caution. To offset these headwinds, Beijing announced plans to invest RMB500bn into new infrastructure projects in a bid to support growth.
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