Daily Market Update: 25 May 2025

ASX gains on rate relief and peace hopes

The S&P/ASX 200 Index (ASX: XJO) rose 0.4 per cent, or 35.3 points, to 8657, delivering a second weekly gain in six weeks as optimism around potential United States-Iran peace talks and a softer Australian jobs report lifted investor sentiment. Seven of the 11 sectors finished higher, with the benchmark up 0.3 per cent for the week after a volatile period that included four sessions moving more than 1 per cent. Materials led the market after UBS Group AG (SWX: UBSG) raised copper price forecasts for 2026 to 2028, supporting gains in BHP Group Limited (ASX: BHP), which rose 1.1 per cent to $59.75, South32 Limited (ASX: S32), up 5.1 per cent to $4.35, and Evolution Mining Limited (ASX: EVN), which gained 3.2 per cent to $12.17 after an upgrade to buy.

Local stocks move on oil, banks and deal news

Guzman y Gomez Limited (ASX: GYG) led the market, rising 9.6 per cent to $19.81 after announcing an immediate exit from the United States market following underperformance against financial hurdles. Energy stocks were supported by a rebound in oil prices, with Woodside Energy Group Limited (ASX: WDS) up 0.9 per cent to $32.10 and Santos Limited (ASX: STO) rising 1.4 per cent to $8.24. Communication services lagged as CAR Group Limited (ASX: CAR) fell 2.8 per cent to $24.82, Telstra Group Limited (ASX: TLS) declined 1.5 per cent to $5.38, and Tuas Limited (ASX: TUA) ended flat at $2.31 after terminating its $1.5 billion agreement to acquire Singapore’s M1 Limited. Financials were mixed, with Insurance Australia Group Limited (ASX: IAG) down after Citigroup Inc. (NYSE: C) warned of potential claims linked to failed financier Greensill Capital, while ANZ Group Holdings Limited (ASX: ANZ), National Australia Bank Limited (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation (ASX: WBC) posted gains. Elsewhere, Appen Limited (ASX: APX) rose 9.4 per cent after reaffirming 2026 revenue guidance, and Mayne Pharma Group Limited (ASX: MYX) gained 3 per cent after winning $13.27 million in legal fees from Cosette Pharmaceuticals, Inc.

Wall Street climbs as earnings and diplomacy support sentiment

United States equities advanced on Friday, supported by signs of progress in Middle East peace talks and a strong corporate earnings season. The S&P 500 Index (INDEX: SPX) gained 0.4 per cent, extending its winning streak to eight weeks, while the Dow Jones Industrial Average (INDEX: DJI) added 294 points to reach an intraday record high and the Nasdaq Composite Index (INDEX: IXIC) rose 0.2 per cent. United States Secretary of State Marco Rubio said progress had been made toward a deal with Iran, though Iran’s foreign ministry said differences remained significant. Computer makers rallied after strong results from Lenovo Group Limited (HKEX: 0992), with Dell Technologies Inc. (NYSE: DELL) hitting a record high and HP Inc. (NYSE: HPQ) climbing more than 15 per cent. The Estée Lauder Companies Inc. (NYSE: EL) rose 11.9 per cent after merger talks with Puig Brands, S.A. (BME: PUIG) ended, while Workday, Inc. (NASDAQ: WDAY) gained 5.2 per cent after beating first-quarter earnings estimates.