🌍 Global
16 June 2025
The ASX 200 eked out a modest gain of 6.2 points (+0.07%) to close at 8,553.6 on Monday, supported primarily by a sharp rally in the energy sector, while Wall Street’s Friday slump and global geopolitical jitters acted as a drag on investor sentiment.
The standout story of the session was Santos Ltd (ASX: STO), which surged 12.28% following news of a $30 billion takeover bid by a consortium led by Abu Dhabi’s national oil group. The bid, reportedly pitched at $8.89 per share, sent shockwaves through the sector, but also raised eyebrows about regulatory hurdles, with investors cautiously pricing in deal risk.
Uranium and broader energy names joined the rally, with Deep Yellow (ASX: DYL) up 18.53%, Paladin Energy (ASX: PDN) up 15.56%, and Boss Energy (ASX: BOE) jumping 12.64%, reflecting a strong bid tone amid rising crude oil prices.
Source: Market Index | Source Link: https://www.marketindex.com.au
U.S. equities stumbled on Friday, with the Dow plunging 769 points (-1.79%), the S&P 500 sliding 1.13%, and the tech-heavy Nasdaq shedding 1.30%. The trigger: a renewed flare-up in hostilities between Israel and Iran, driving oil prices higher and stoking volatility.
Brent crude rose 1.5% to settle at US$75.34/bbl, while gold edged up 0.4% to US$3,446/oz, reflecting safe-haven flows. The global sell-off also pulled European and Asian indices lower, with the Nikkei down 0.89% and the Hang Seng off 0.59%.
The market’s resilience on Monday was largely due to a 5.91% surge in energy stocks, bolstered by the Santos deal and a global oil rally. Other sectors that supported the index included healthcare (+0.73%) and telecommunications (+0.46%).
On the downside, financials (-0.64%) and consumer discretionary (-0.61%) lagged. Gold miners were hit particularly hard, with Evolution Mining (ASX: EVN) falling 5.76% and Northern Star (ASX: NST) down 5.06%, reflecting the volatile commodity backdrop.
Among the biggest gainers:
Major laggards included:
Interestingly, despite global market jitters, the ASX VIX (Volatility Index) remained at a relatively calm 11.1, suggesting investor expectations for market stability over the next 30 days. This contrasts sharply with the spike in implied volatility in U.S. markets.
This week is stacked with central bank decisions, with the U.S. Federal Reserve, Bank of England, Bank of Japan, and People’s Bank of China all on deck.
The Fed is expected to hold rates steady but may tweak its economic projections. Any hawkish surprise could rattle equities, particularly in interest rate-sensitive sectors like tech and property. Meanwhile, China’s decision on loan prime rates will be watched closely for signs of stimulus amid sluggish growth.
Locally, Australia’s May labour force data is due Thursday. A softer jobs print could reignite rate-cut speculation from the RBA, although most economists expect the central bank to stay cautious given sticky services inflation.
While today’s mild uptick on the ASX may appear underwhelming, the underlying sector rotation tells a more dynamic story. Energy is clearly in focus as geopolitical risk and M&A drive activity. Meanwhile, caution looms large amid U.S. macro uncertainty and a jittery global outlook.
For Australian investors, the key themes remain:
Disclaimer - Skrill Network is designed solely for educational and informational use. The content on this website should not be considered as investment advice or a directive. Before making any investment choices, it is crucial to carry out your own research, taking into account your individual investment objectives and personal situation. If you're considering investment decisions influenced by the information on this website, you should either seek independent financial counsel from a qualified expert or independently verify and research the information.
Tags:
RECENT POSTS
TAGS
Subscribe to the Skrill Network Newsletter today and stay informed
Recommended Articles