Markets lacked direction on Monday despite President Trump delaying a proposed 50% tariff on EU imports. US markets were closed for Memorial Day, while European equities shifted higher. Asian markets were mixed, as corporate earnings and changing macroeconomic expectations drove uneven sentiment. New Zealand equities declined as investors await OCR announcements on Wednesday.
US markets closed Monday for Memorial Day
US markets were closed on Monday in observance of Memorial Day. However, US equity futures gained after President Trump announced an extended deadline on euro area tariffs.
European equities positive, as investors digest US tariff announcements
European equities were mixed as investors digested Sunday’s news that President Trump will implement 50% tariffs on European Union imports from 9 June, delaying earlier promises to enact the tariff from 1 June. UK markets were closed for the Spring Bank Holiday, while the Stoxx 600 added +1.0%. Trump’s extension followed discussions with the EU Commission chief, giving ‘new impetus’ to trade talks. Meanwhile, European defence stocks and tariff-sensitive automakers led gains. Defence names Rheinmetall and Leonardo both jumped +3.3%. Luxury stocks with large US exposure also performed well, with Kering (+1.1%), LVMH (+0.9%), and Richemont (+0.9%) all posting solid gains.
Asia mixed, Australia flat as Trump policies weigh
Australian equities were flat on Monday, with the ASX 200 inching just +0.1% higher. Origin Energy shed -4.9% after unexpectedly warm UK weather weighed on electricity and gas demand, prompting the company to warn that its management platform arm, Octopus Energy, is now forecast to book an underlying operating loss of up to -A$100m—despite earlier guidance of a +A$100m profit. WiseTech added +4.7% after the software group agreed to acquire US-based E2open for US$2.1b. Asian equities were mixed as Chinese-listed Apple suppliers slid following President Trump’s threat of 25% tariffs on imported iPhones. China’s CSI 300 and Shanghai Composite lost -0.6% and -0.1% respectively. Hong Kong’s Hang Seng fell -1.4%, while Korea’s Kospi (+2.0%) and Japan’s Nikkei 225 (+1.0%) both gained. In New Zealand, the NZX 50 dipped -0.4%.
Commodities mixed
WTI Crude was flat at US$61.53/bbl, Gold lost -0.4% to US$3,342.42/oz, and Iron Ore dipped -0.1% to US$99.81/MT.
NZ Headlines
Media firm NZME has banned journalists from attending its annual general meeting without first obtaining express permission from the board.
NZX- and ASX-listed firm Eroad leapt +13.8% after revenue rose +6.8% to NZ$194.4 million in the year ended 2025, in line with guidance. The company forecasts a +5.5% revenue increase in the current financial year, supported by growth ambitions in North America and ongoing tariff uncertainty.
Automotive firm Turners gained +3.3% after withstanding challenging economic conditions and reporting a -0.7% fall in revenue year-on-year, with revenue at NZ$414.2 million for the year ended 31 March. Investors welcomed the result, noting that margins and volumes improved in the second half.
Financial services firm General Capital reported a +32% rise in revenue for the year ended 31 March compared with the year prior, citing growth—particularly in General Finance—despite tough economic conditions.
Today's Events
- APL FY25 Result