Space pioneer Rocket Lab shot higher in a subdued day in global markets as investors pause for breath after the flurry of activity at the start of the week when the US and China cooled their rivalry and President Donald Trump embarked on a deal-making spree in the Middle East.
Chipmakers Nvidia and Advanced Micro Devices were among the gainers on the tech-heavy Nasdaq Composite, extending their rally as Trump secured Saudi Arabian commitments to invest in US artificial intelligence.
And while the surface may seem calm between the US and China, with some restrictions being unwound, Huawei Technologies is still in America’s bad books with new guidelines banning the use of the Chinese tech firm’s Ascend chips.
Meanwhile, Australian futures are pointing to a softer day in the antipodes, with earnings on the radar from ASX-listed software giant Xero and NZX-listed fishing group Sanford.
On reflection
Stocks in Europe were weaker and Wall Street was mixed following the ebullience earlier this week on the suspension of tit-for-tat tariffs between the US and China.
The UK’s FTSE 100 index slipped 0.2% and Germany’s DAX 30 declined 0.5%, while Wall Street’s Dow Jones Industrial Average was down 0.2% in late trading and the tech-heavy Nasdaq gained 0.5%.
“Markets are in a consolidation mode, against the backdrop of light newsflow,” Bank of New Zealand senior markets strategist Jason Wong said in a note. “The S&P500 is currently flat but IT stocks have outperformed, boosted by deals signed by President Trump during his trip, including multi-year AI infrastructure projects.”
Chipmakers Nvidia and AMD extended their gains after Trump’s Middle East deals and as the Department of Commerce revoked a Joe Biden-era rule that imposed caps on chip sales to the likes of India and Switzerland.
And while the US and China have continued to ease their restrictions such as America’s tariff reduction on small packages, and China lifting export controls on a selection of entities, Huawei remains in the US sights with the Department of Commerce’s Bureau of Industry and Security issuing guidelines that using the company’s Ascend AI chips were likely in violation of US export controls.
To the moon
New Zealand-linked Rocket Lab surged 11%, nearing a three-month high, and extending its gains since analyst Stephen Guilfoyle raised a price target on the space firm earlier this week.
Wall Street’s potential initial public offering pipeline got a boost after Robinhood rival eToro surged 34% on debut in the first IPO since Trump’s Liberation Day scuppered several launches.
The subdued tone in US and European markets is expected to carry over to the antipodes, with Australian futures pointing to a 0.4% decline on the S&P/ASX 200 index.
Accounting software firm Xero is scheduled to report earnings on the ASX today, while fishing group Sanford is due on the NZX. Retailer Briscoe Group is holding its annual meeting in Auckland today.
Local data include partial inflation indicators for the month of April and house sale figures.
The kiwi dollar fell to 58.98 US cents at 7am in Auckland from 59.40 cents yesterday after the greenback rallied on reports that US officials aren’t seeking to include currency policies in their trade agreements.
Reporting by Paul McBeth. Image from Doug Walters on Unsplash.
