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Morning Research Notes - 09.04.25
US markets closed significantly lower yesterday on escalating trade war concerns, driven by the Trump administration's implementation of a 104% tariff on Chinese goods. Commodities experienced bearish performances on Tuesday. Gold decreased by 0.01% to $US2982.92 an ounce, Brent Crude (oil) fell by 4.2% to $US61.54 a barrel, and iron ore dropped to $US94.90 a tonne.
Yesterday, Wall Street experienced a significant downturn, with the S&P 500 closing below 5,000 for the first time in nearly a year, driven by escalating trade war concerns. The Trump administration's decision to implement a 104% tariff on Chinese goods at midnight, coupled with President Trump's threat to impose an additional 50% tariff if China does not retract its recent 34% tariff increase on U.S. products, fuelled investor anxiety. U.S. Trade Representative Jamieson Greer testified before the Senate Finance Committee, stating that the costs from tariffs rarely filter through to consumers, aiming to alleviate some concerns about the economic impact. Treasury Secretary Scott Bessent mentioned potential negotiations to reduce trade barriers, but the immediate impact of these tariffs weighed heavily on the market.
On Tuesday, the Australian market closed on a positive note, with the ASX200 index rising by 2.22%. Major sectors, including Materials, Financials, Information Technology, Healthcare, and Utilities, all ended the day in the green. However, major commodities showed mixed performance. Aluminium and Zinc recorded gains of 0.68% and 1.38% respectively, while Copper and Nickel saw declines of 0.74% and 0.63%.
Chart of the day
The global sportswear market, which has enjoyed a robust annual growth rate of 7% over the past three years, is expected to see a slight deceleration to 6% annual growth from 2024 to 2029. This slowdown is primarily attributed to economic challenges and market saturation in key regions such as Asia–Pacific, Western Europe, and Latin America. These regions are experiencing slower economic recoveries and increased competition, impacting overall market expansion.
Source: McKinsey
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