United States
US equity markets recovered from early session losses to close modestly higher on Friday, following comments from President Trump suggesting there would be “flexibility” in his proposed reciprocal tariff regime set to begin on April 2nd. While the remarks helped calm investor nerves for the day, uncertainty remains over what “flexibility” will entail in practice.
The S&P 500 finished the session up 4.67 points (+0.08%) at 5,667.56. Eight of the eleven sectors declined, with real estate the worst performer, while communication services led the gains with a 1.0% increase. For the week, the S&P 500 rose 0.5%, breaking a four-week losing streak.
The Dow Jones Industrial Average also rose 0.08%, adding 32 points to close at 41,985.35. The Nasdaq Composite outperformed, climbing 0.52% to 17,784.05, driven by a 1.4% gain in the “Magnificent Seven” index. Among its components, Apple rose 1.95%, while Tesla surged 5.27% as bargain hunters re-entered the stock amid calmer market conditions.
Nike shares fell 5.5% after the company warned of a sales decline in the fourth quarter—worse than analysts had expected—citing tariffs and weakening consumer confidence as key headwinds.
In the defence sector, Boeing shares gained 3.06% following the announcement that it had secured a government contract to supply the next-generation fighter jet, dubbed the F-47 for the US air force. The new jet will replace the current Raptor F-22 supplied by Lockheed Martin, their shares dropped 5.79% to $439.70 on the news.
FedEx, often seen as a bellwether for the broader economy, cut its full-year profit and revenue guidance, citing ongoing uncertainty in the US industrial sector. Its shares fell 6.45% to $230.33. Analysts also pointed to the Dow Jones Transportation Index—which tracks 20 key stocks in airlines, logistics, and delivery services—falling more than 17% from its November 2024 peak, as further evidence of economic softness.
Looking ahead, investors will be watching closely for fresh consumer data, with both consumer confidence and sentiment figures due this week. Markets are particularly focused on Friday’s release of the Fed’s preferred inflation measure, the Core PCE Index.
In fixed income, US bond markets were mostly steady. The 10-year Treasury yield remained unchanged at 4.24%, while the 2-year yield was lower in yield by 2 basis points to 3.95%. The US dollar continued to strengthen, rising another 0.25% after gains on Thursday.
Europe
European shares declined on Friday, with the EuroStoxx 600 falling 0.60% to close at 549.67, down 3.31 points. Nine of the eleven sectors ended the day in the red, with materials and energy performing the worst. In the UK, markets also finished lower, with the FTSE 100 falling 0.63% to close at 8,646.79.
Headlines were dominated by the closure of Heathrow Airport, the UK’s main air hub, following a power outage caused by a fire. Despite Friday’s losses, both the EuroStoxx 600 and FTSE 100 ended the week higher.
Airline stocks were weaker on the day but recovered from deeper intraday declines. International Consolidated Airlines Group (IAG), the parent company of British Airways, fell 1.86% after being down more than 4% earlier in the session. Ryanair also declined, closing 2.29% lower.
Resource stocks were under pressure as iron ore and copper prices retreated. Copper miner Antofagasta dropped 4.82%, while Anglo American declined 3.07%.
Concerns over consumer spending weighed on retail stocks. JD Wetherspoon fell 9.38% after releasing a weak interim report and citing concerns about the broader economic outlook. JD Sports Fashion dropped 5.09% following Nike’s announcement of challenging trading conditions expected in the fourth quarter.
Despite a major spending package approved by the German parliament this week, concerns about growth in the Eurozone persist. Consumer confidence in the region declined in March, with the index falling to -14.5 from -13.6 in February—worse than economists had anticipated. Some analysts now expect the European Central Bank (ECB) to cut interest rates by another 25 basis points when it meets in April.
In fixed income markets, German 10-year bund yields slipped 1 basis point to 2.76%. UK 10-year gilt yields rose by 6 basis points to 4.71%. In currency markets, the euro weakened slightly, with EUR/USD falling 0.3% to 1.0818.
Australia
The Australian share market ended the week with a modest gain of 0.16%, closing at 7,931.20 after adding 12.30 points. Sector performance on the day was mixed, with six sectors finishing in the green and five in the red. The day’s gains were primarily driven by the Consumer Staples sector, which surged 3.90%.
For the week, the Australian market rose 1.82%, snapping a four-week losing streak. It marked the index’s strongest weekly performance since late December 2024.
The Consumer Staples sector was buoyed by the release of the ACCC’s report into supermarket competition. The report included 20 recommendations aimed at improving competition to benefit consumers. Notably, the commission observed that Woolworths and Coles are among the most profitable supermarkets globally. Crucially, the ACCC did not accuse the companies of price gouging, suggesting to investors that no further regulatory action is expected. This boosted supermarket shares, with Woolworths jumping 6.32% to $29.93, a $1.78 gain, and Coles climbing 4.85% or 90 cents to $19.46. Metcash, a supplier to smaller supermarkets, also rose 3.57% to $3.19.
The Industrials sector was another standout performer on Friday, gaining 1.15%. Toll road operator Transurban (TCL) added 3.18% to $13.29, while global share registry firm Computershare gained 3.70% to close at $40.65.
Healthcare weighed on the index, with Pro Medicus dropping 6.47% or $15.47 to $223.58. Sigma Healthcare also declined, falling 1.37% to $2.87.
Mining stocks linked to critical minerals were under pressure after former President Trump signed an executive order to boost development of U.S. domestic resources. Lithium miner Liontown dropped 5.70%, while Pilbara Minerals fell 5.13% to $1.85. Gold miner Emerald Resources also declined 3.85% to $4.00 after issuing an update that cut production guidance at its Cambodian operations.
Bond yields were little changed, with the 10-year government yield easing by 2 basis points to 4.39%.
In futures trading on Friday evening, ASX200 futures fell 41 points, or 0.51%. Meanwhile, BHP shares slipped 1% in New York to close at A$39.17, down 37 cents from the Australian close. The Australian dollar weakened to 0.6273 against the U.S. dollar, a decline of 0.47%.
The week ahead sees the Federal Budget handed down by Treasurer Chalmers on Tuesday evening and monthly inflation data to be released on Wednesday.
Commodities
Oil prices edged slightly higher in quiet trading on Friday. West Texas Intermediate (WTI) rose by 0.31%, gaining 21 cents to close at US$68.28, while the Brent crude contract added 0.22% to settle at US$72.16. Both benchmarks recorded weekly gains, marking two consecutive weeks of positive performance. Supporting demand were additional sanctions imposed by the U.S. Treasury on Iranian oil exports, targeting independent refiners and vessels involved in transporting Iranian crude to China.
Gold experienced some profit-taking as equity markets stabilised, falling 0.75% or US$22.75 to close at US$3,022.15. A strengthening U.S. dollar also exerted downward pressure on the precious metal. Silver declined 1.66% to US$33.03.
Bitcoin was marginally higher from its close on Thursday trading at US$85,067 a gain of 0.66%.
Iron ore remained relatively stable, closing at US$100.25 in New York, down 25 cents. However, this close masked a sharper drop earlier in Asian trading, where prices briefly dipped to around US$99 before recovering.
Copper in London dropped by US$81 to close at US$9,856, down 0.82%. On Friday, traders speculated that China may look to replenish its strategic reserves of key industrial metals—such as cobalt, copper, nickel, and lithium—after the National Food and Strategic Reserves Administration reportedly made price inquiries for several of these commodities.
Economic Calendar
AU:
- Purchasing Manager Indexes (Mar) -11:00am
China:
- 1 year Lending rate announcement – 2:30pm
EU:
- Purchasing Manager Indexes – Europe and Individual Countries (Mar) – 8:00pm
US:
- Chicago Fed National Activity Index (Feb) – 11:30pm
- Purchasing Manager Indexes (Mar) -12:45am
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
