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Highlights
- US tariff ruling boosts technology and consumer stocks.
- Q4 S&P 500 earnings growth exceeds 14%, the strongest in four years.
- WTI crude rises past $66 on geopolitical and inventory shocks.
- Gold climbs back above $5,000 on safe-haven demand.
- Australia’s unemployment holds steady at 4.1%.
Global markets closed last week on a dramatic note as a landmark US tariff ruling lifted equity sentiment, geopolitical tensions pushed oil to a six-month high, and gold reclaimed the psychological $5,000 mark. Cooling inflation in Japan contrasted with a resilient Australian labour market, while blockbuster earnings and key inflation data now set the tone for the days ahead.
Tariff Shock Lifts Risk Appetite
The US Supreme Court struck down tariff policies under the IEEPA, triggering a sharp rebound in large-cap technology and consumer stocks. The S&P 500 and Nasdaq 100 each rose 1.1% for the week, supported by robust Q4 earnings growth of more than 14% — the strongest in four years. However, subdued guidance from Walmart highlighted pressure on lower-income consumers and softer hiring trends.
Oil Jumps on Middle East Tensions
Crude prices rallied as the US increased its military presence in the Gulf and Iran conducted naval drills with Russia. WTI moved above $66 per barrel, aided by a surprise 9-million-barrel inventory draw and steady OPEC+ output. Despite the rally, a global supply surplus and rising production continue to cap upside potential.
Gold Reclaims Safe-Haven Crown
Gold climbed 1.2% to regain $5,000 per ounce as geopolitical risks intensified. Central bank buying remained a key structural support, with China extending its purchasing streak to 15 months and Poland raising its reserve ceiling. ETF inflows turned positive again, signalling easing liquidity pressure.
Japan Cools, Australia Stays Firm
Japan’s inflation fell to 1.5% — its first drop below the Bank of Japan’s 2% target in 44 months — reinforcing a cautious rate outlook. In Australia, unemployment held at 4.1%, while the RBA maintained a hawkish tone and signalled a pause to assess the impact of February’s rate hike.
The Week Ahead: Inflation & AI in Focus
Australia’s CPI and US PPI will guide rate expectations, while Nvidia’s earnings will test the strength of AI-driven demand. Berkshire Hathaway’s annual results and HSBC’s earnings will also draw close market attention as Hong Kong’s reporting season begins.
FAQs
- Why did US equities gain last week?
A Supreme Court ruling against tariff policies and strong Q4 earnings growth lifted investor sentiment. - What is driving the rally in oil prices?
Escalating US-Iran tensions, a large US inventory draw, and steady OPEC+ output supported crude. - What are the key data points to watch this week?
Australia’s CPI, US PPI, and Nvidia’s earnings are the primary market triggers.