United States
US equities continued their advance on Tuesday, rising for a sixth consecutive day as investors looked past weak economic data to focus on tariff adjustments and hopes for new trade deals with individual countries. President Trump announced an easing of auto tariffs to prevent multiple layers of tariffs stacking on auto parts, hinting that further concessions may follow. Commerce Secretary Lutnick also indicated that a tariff agreement had been reached with one country, pending formal approval. However, this optimism was tempered by weaker consumer confidence and employment figures from the JOLTS survey.
At the close, the Dow Jones Industrial Average rose 0.75%, adding 300 points to finish at 40,527. The Nasdaq Composite gained 0.55% or 95 points to close at 17,461, while the S&P 500 advanced 0.58% to end the day at 5,560. All sectors of the S&P 500, except energy, finished higher, with financials and materials leading the gains.
Despite the positive news on auto tariffs, GM shares fell 0.64% to US$46.94 after the company withdrew its 2025 earnings guidance and paused a US$4 billion share buyback program pending more clarity on the impact of tariffs. GM shares initially fell more than 2% before paring losses. In contrast, Ford rose 1.3%, and Stellantis (formerly Fiat Chrysler) gained 2.45% in US trading. Analysts viewed the tariff adjustments as a “substantial reprieve for the industry.” Tesla shares climbed 2.15% to close at US$292.03.
Elsewhere, news that European drugmaker Novo Nordisk would partner with Him & Hers Health to sell its weight loss drug Wegovy sent Him & Hers shares soaring 23% to US$35.04. Pfizer shares also rose, gaining 3.21%, after the company announced additional cost-cutting measures alongside stronger-than-expected quarterly results.
On the economic front, the JOLTS survey showed a sharp drop in job openings in March. Meanwhile, transport giant UPS announced it would cut 20,000 jobs this year due to lower order volumes from Amazon. Consumer confidence, as measured by the Conference Board, fell to its lowest level since May 2020, with a reading of 86.
In bond markets, yields fell as investors favoured shorter-dated securities. The 2-year Treasury yield slipped 4 basis points to 3.65%, while the 10-year yield fell 3 basis point to 4.18%. The US dollar stabilized, posting a modest 0.20% gain on the Bloomberg US Dollar Index.
Europe
Positive earnings results helped lift the Euro Stoxx 600 for a sixth consecutive session, gaining 0.36% to close at 525.09 with a 1.9-point increase. Gains were driven by strong performances in the healthcare and utilities sectors, with eight sectors rising and three declining on the day. The FTSE 100 also extended its advance, rising 46 points (0.55%) to close at 8,463.
The UK market was led higher by HSBC, which reported a better-than-expected first-quarter profit of USD 9.5 billion, surpassing forecasts of USD 7.5 billion, and announced a USD 3 billion share buyback. HSBC shares rose 2.63%. Deutsche Bank added to the positive momentum, posting a 39% increase in first-quarter profits, driven by a strong rise in trading revenues from its bond and currency divisions. Deutsche Bank shares climbed 5.04%. Despite the upbeat results, both banks warned of potential impacts from tariffs.
Among individual stocks, arms manufacturer Rheinmetall surged 8.51% after reporting a 46% increase in first-quarter sales and a corresponding rise in profits. However, not all earnings results were positive. Schneider Electric missed revenue expectations, citing weakness in its building markets, with its shares falling 6.3%.
BP shares declined 2.43% after the company reported a 48% drop in net profit, attributed to weaker performance in its gas trading and refining businesses.
Healthcare was the best-performing sector. Novo Nordisk gained 2.43% after announcing partnerships with telehealth firms Hims & Hers and LifeMD to sell its weight loss drug, Wegovy. AstraZeneca also delivered a strong first-quarter earnings report, beating expectations and lifting its shares by 0.9%.
In bond markets, yields drifted lower. The German 10-year bond yield fell by 3 basis points to 2.49%, while UK 10-year yields declined by 3 basis points to 4.48%. Meanwhile, an ECB survey revealed that inflation expectations across the eurozone have increased. On a brighter note, German consumer sentiment improved, with a survey showing optimism toward the newly elected government.
Australia
Traders were encouraged by a further concession on auto tariffs from the US administration, pushing the Australian equity market to a two-month high. The ASX 200 rose 0.92%, gaining 73 points to close at 8,070.60. Ten of the eleven sectors finished higher, with the strongest gains recorded in materials, utilities, and energy.
Energy shares rallied, led by uranium stocks. Boss Energy soared 14.3% to $3.20 after reporting increased uranium production and announcing it had begun generating free cash flow from its South Australian mine. Paladin Energy also advanced, jumping 8.5% to $6.13. Woodside Energy continued its upward momentum despite softer oil prices, rising 1.47% to $20.66, after announcing a final investment decision on its $17.5 billion LNG export project in Louisiana. The plant is targeting its first shipment in 2029, with Woodside expected to manage more than 5% of global LNG supply in the 2030s.
In the materials sector, Fortescue Metals Group reported a 6% increase in iron ore shipments for the third quarter, supported by higher production from its Iron Bridge project. Its shares surged 5.82% to $16.37. BHP also gained, rising 1.41% to $38.19. In contrast, Northern Star Resources cut its gold production forecast, citing short-term operational challenges and higher maintenance costs, although it noted mining efficiency is expected to “lift significantly” in the fourth quarter. Shares in Northern Star fell 4.74% to $19.88.
Bond yields moved higher, with the 10-year yield up 2 basis points to 4.18% and the 2-year yield also rising 2 basis points to 3.26%.
Today, attention turns to the release of Australia’s March quarter CPI figures. The headline inflation rate is expected to show an annual rise of 2.2%, down 0.2% from the previous quarter. The trimmed mean CPI — the Reserve Bank of Australia’s preferred measure — is forecast to decline by 0.4%, bringing the annual rate to 2.8%, squarely within the RBA’s 2–3% target band. Most major bank economists are now predicting a 0.25% rate cut at the RBA’s next meeting on May 20.
Overnight trading has pushed the ASX200 futures higher with a 28-point gain, the equivalent of 0.35% increase. The AUDUSD is lower trading at 0.6386 to begin Wednesday.
Commodities
Oil prices continued to slide, with West Texas Intermediate falling 2.90% to US$60.26 and Brent Crude dropping 2.70% to US$64.08, marking a two-week low. The ongoing decline reflects growing concerns over the reality of reduced trade activity between China and the United States. Sentiment was further dampened by weaker-than-expected earnings from BP. Additionally, traders are anticipating an announcement of increased production from OPEC+ during their early May meeting, which has added to the bearish outlook.
Copper rose US$62 to US$9,440 per tonne on the London Metal Exchange, a gain of 0.66%. The rise was supported by reports of strong domestic demand in China, with local traders noting a decline in stockpiles in recent weeks. Iron ore remained steady at US$98.45 amid subdued, range-bound trading.
Gold edged lower to US$3,320, slipping 0.72% or US$24.11. A reduction in safe-haven demand followed comments from Treasury Secretary Bessent regarding constructive negotiations with key trading partners and adjustments to auto tariffs to avoid overlapping levies. Silver also declined, falling 0.75% to close at US$32.92.
Meanwhile, Bitcoin extended its rebound, gaining 0.50% to trade at US$94,985 as buyer interest continued to reemerge.
Economic Calendar
AU:
- Consumer Price Indexes (Mar Qtr.) – 11:30am
- Private sector Credit (Mar) – 11:30am
- CoreLogic Home Value (Apr) – 11.30am
China:
- Caixin Composite PMI (Apr) – 11:45am
EU:
- GDP Growth – Flash (Apr) – 7:00pm
US:
- GDP Growth (ADP Employment Change (Apr)- 11:30pm
- Core Personal Consumption Expenditure (PCE) (Mar) – 12:00am
- Personal Income and Spending (Mar) – 12.00am
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
