Global markets start the week with geopolitics looming large after the tense exchange between the US and Ukrainian presidents and as the Trump administration prepares to press ahead with its tariff regime.
European leaders are reaffirming commitments to boost military spending and build a coalition to broker peace between Ukraine and Russia after the terse press conference between US President Donald Trump and his Ukrainian counterpart Volodymyr Zelenskyy dealt a blow to the prospects for a ceasefire.
The kiwi dollar traded at 55.94 US cents at 7am in Auckland from 56.03 cents on Friday as the heightened uncertainty prompted investors to flock to the greenback, while stocks on Wall Street were dented by the fiery exchange before rallying into the end of the week, with the S&P 500 up 1.6%.
Meanwhile, US commerce secretary Howard Lutnick said on Sunday that tariffs on Canada and Mexico will come into effect on Tuesday, but that Trump hasn’t yet settled on whether to stay with the planned 25% level.
“The market rebound was set against several macro cross currents including rising geopolitical tensions between the US and Ukraine, soft US consumption data and further developments on trade policy,” Bank of New Zealand senior interest rate strategist Stuart Ritson said in a note. “The US dollar gained after a public disagreement between President Trump and Ukraine President Zelenskyy which cast doubts about the peace process.”
Turning the Titanic
Australia’s attempts to secure an exemption on the proposed metals regime look to be in doubt, with US trade adviser Peter Navarro writing in USA Today that Australia’s subsidised smelters operate below cost, giving its exports an unfair dumping advantage.
And the Trump regime has ordered a new trade investigation into imported lumber.
Bitcoin surged 11% to US$94,559 in a broad crypto currency rally after Trump named Ripple, Solana and Cardano will be included in a new US crypto strategic reserve.
Australian futures are pointing to a 0.6% gain for the S&P/ASX 200 index today. The ASX200 fell 1.5% last week, while New Zealand’s S&P/NZX 50 index declined 1.7%, with the $1 billion capital raising from Ryman Healthcare dragging down the local market.
Ryman was the top buy for DIY investment platform Invest Direct users last week, followed by Spark New Zealand, which has been trading at its lowest level in more than a decade.
Domestically, Bremworth is facing shareholder agitation as a group of investors with almost 12% of the company’s stock seek to oust the board and install their own directors to revive the carpetmaker's fortunes.
Among local data scheduled for today, Statistics New Zealand will release the December quarter terms of trade.
Reporting by Paul McBeth. Image from Marjan Blan on Unsplash.
Disclosure: Paul McBeth has owned shares of Bremworth since February 2024.