Morning Bell 30 June

Wall Street closed higher on Friday as investors looked past President Trump’s latest swipe at Canada. The S&P500 rose 0.52% to close at a fresh record high while the Dow Jones added 1% and the Nasdaq ended the day up also 0.52% and also to a fresh record high. On Friday President Trump posted on truth social, his social media platform, that talks between the U.S. and Canada were being terminated. Investors remain confused about the global tariff situation amid the looming July 9 tariff delay deadline, but pushed stocks higher on Friday on reports that the U.S. is close to announcing trade deals with 10 major partners.

In Europe on Friday, markets closed higher on optimism of improving trade talks between the U.S. and China. The STOXX 600 rose 1.1%, Germany’s DAX added 1.5%, the French CAC climbed 1.8% and, in the UK, the FTSE100 ended the day up 0.7%.

Across the Asia region on Friday, markets closed mixed as investors assessed China’s May industrial output data indicating industrial profits fell 9.1% over the first 5-months of the year. China’s CSI index fell 0.61%, Hong Kong’s Hang Seng lost 0.17%, Japan’s Nikkei rose 1.43% and South Korea’s Kospi index ended the day down 0.77%.

Locally on Friday the key index posted a 0.43% loss as a sharp sell-off in financials, healthcare and REIT stocks weighed on the key index. For the week, the ASX200 posted a 0.1% gain though led by financials and materials stocks posting over 1.5% gains each.

Reece (ASX:REH) tumbled over 18% on Friday after announcing its FY25 earnings were expected to fall significantly from the year prior, while Woolworths (ASX:WOW) shares fell 1% despite the supermarket giant announcing it will close its loss-making MyDeal marketplace just 3-years after purchasing it.

 What to watch today:

• The Aussie dollar has weakened against the greenback to buy 65.38 U.S. cents, 94.36 Japanese yen, 47.62 British pence and 1 New Zealand dollar and 8 cents.
• On the commodities front this morning oil has continued to retreat, trading down 0.26% at US$65.07/barrel, uranium is up 0.7% at US$ 79.05/pound, gold is down 1.65% at US$3273.67/ounce, and iron ore is up 0.01% at US$94.49/tonne.
• Ahead of the first trading session of the new week the SPI futures are anticipating the ASX will open the day up 0.06%.

Trading ideas:

• Bell Potter has decreased the 12-month price target on Chalice Mining (ASX:CHN) from $5.75 to $4.10 and maintain a speculative buy rating on the copper miner following key updates out of the company confirming the development plan for its 100%-owned Gonneville project near Perth. The updates give the market greater clarity on the project development milestones with the plan striking the right balance between value extraction and mining and processing routes that minimise capex.
• And Trading Central has identified a bullish signal on Data3 (ASX:DTL) following the formation of a pattern over a period of 59-days which is roughly the same amount of time the share price may rise from the close of $7.51 to the range of $8.90 to $9.30 according to standard principles of technical analysis.