Equity markets were steady, with brief volatility driven by renewed tariff concerns and mixed economic data—including signs of rising inflation and strong retail sales figures. European markets were mostly flat. In Australasia, investor sentiment was buoyed by corporate earnings and promising trade signals, supporting gains.
US equities are mostly unchanged as reports of new Trump tariffs briefly shocked markets
US markets rebounded on Friday, recovering from an earlier plunge triggered by reports that President Trump was considering steep new tariffs of at least 15%–20% on EU products. The DOW lost 0.3%, the S&P 500 was flat, while the NASDAQ rose 0.1%. Economic data has been mixed, with strong retail sales, higher-than-expected consumer inflation, and unchanged producer prices for June. Cryptocurrency stocks surged after the US House of Representatives approved a bill modifying the cryptocurrency regulatory framework. Robinhood Markets and Coinbase Global leapt 4.1% and 2.2% respectively. Utilities led gains, rising 1.7% to a record close. Meanwhile, energy led losses, falling -1%, dragged by SLB (-3.9%) after reporting smaller quarterly profits and a poor outlook, and Exxon Mobil (-3.5%) which lost its legal case regarding Chevron's Hess acquisition. Elsewhere, Netflix slipped 5.1%, despite ‘Squid Games’ success and surpassing earnings forecasts. In rates markets, the US two-year yield lost 5bp to 3.87%, while the 10-year yield shed 4bp to 4.42%.
European equities unchanged as healthcare is offset by oil and gas
European equities were mostly flat on Friday, with London’s FTSE 100 adding +0.2% and Europe’s STOXX 600 remaining unchanged, as healthcare’s losses were offset by surging oil and gas stocks. Corporate earnings from firms across the continent have gripped investors, who are gauging how companies have adjusted to shifting US tariffs before the 1 August deadline. Epiroc shed -9.2% after its second-quarter results failed to meet market expectations. Meanwhile, Saab leapt +16.4% after recording higher-than-anticipated earnings in the second quarter. GSK slid -4.6% after a US FDA advisory panel opted not to recommend approval of its blood cancer drug, Blenrep, due to side effect concerns.
Australasian equities rise as earnings reports swell sentiment
Australian equities gained on Thursday, the ASX 200 advancing +1.4% to a new record high, boosted by gains in BHP and CSL. Winners outnumbered losers by a ratio of more than 9–to–2. BHP leapt +3% following a solid June-quarter production report; net debt at 30 June disappointed forecasts, while FY26 guidance met expectations. CSL added +3.6% as investors saw US tariff threats as priced in. Mesoblast soared +35% after recording impressive first-quarter sales of its Ryoncil disease treatment. Asian equities largely gained after the Chinese commerce minister reported China–US trade talks were promising and may make the tariff war unnecessary. China’s CSI 300 added +0.7%, while the Shanghai Composite rose +0.5%. Otherwise, Asia was mixed: Hong Kong’s Hang Seng lifted +1.3%, Korea’s Kospi rose +0.2%, and Japan’s Nikkei 225 fell -0.2%. The NZX 50 shed -0.2%.
Commodities mixed
WTI crude shed -0.3% to US$67.34/bbl, gold added +0.3% to US$3,349.26/oz, iron ore added +0.2% to US$97.22/MT.
NZ Headlines
International payment providers criticised the Commerce Commission’s decision to reduce interchange fees, which they claim cost Kiwi businesses around $1b annually.
Manuka Resources was accused of misleading investors about the status of its environmental consents for its South Taranaki coast seabed mining project. Formal complaints have now been lodged with the Australian stock exchange and the Australian Securities and Investments Commission.
Rocket Lab rocketed +32%, breaking US$50, after the New Zealand-founded rocket launch systems firm rose 94% over the past month, launched three Electron rockets in June, and nears the launch of its first Neutron.
Energy technology start-up Prospero Energy has raised $3m from various investors—including Icehouse Ventures, K1W1, Blackbird, and Func Ventures—to fund global expansion and the further development of its software product, which helps electricity retailers price their products.
Today's Events
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