Markets Today (17 October 2025) at Open Key Trends from Wall Street to ASX

1. ASX Outlook

ASX 200 trading with a drop of 25 points, 9043.6 (-0.26%), suggests the Aussie market will likely to remain a bit weaker today.

2. Overnight US Markets:

Major US markets started strong but faded later, closing mostly lower.

Key reason: concerns over US regional banks — especially after bankruptcy filings by subprime auto lenders and fraud allegations against Zions Bancorp and Western Alliance.

Meanwhile, the AI sector stayed resilient, boosted by strong Q3 earnings and an upgraded outlook from chip giant TSMC.

Index             Value   % Change

S&P 500         6,629        -0.63%

Dow Jones      45,952      -0.65%

NASDAQ        22,563      -0.47%

Russell 2000   2,467        -2.09%

Smaller companies (Russell 2000) were hit hardest, showing investors are moving away from riskier stocks.

3. US Sector Performance

•  Only one sector was positive: Information Technology (+0.13%), supported by AI optimism.

•  Biggest losers:

Financials: -2.75% (due to banking fears), Energy: -1.12%

Utilities & Consumer sectors: also slightly weaker.

4. Commodities

Gold surged to above US$4,300, as investors looked for safety amid credit market concerns.

Oil fell sharply due to global demand worries.

Copper inched higher, signaling modest industrial demand.

5. What to Watch Today (ASX Focus)

Gold: Prices are “going vertical,” now above US$4,300. Gold miners like Newmont rose around 5%, while gold ETFs jumped nearly 3.6%.

Lithium: The sector pulled back — Lithium Americas fell 21.7%, Ioneer down 12%, 5E Materials down 5.6% — as investor hype cools off.

Financials: The US financial sector dropped 2.7%, so local bank stocks may also feel pressure.

REITs (Real Estate): Falling Australian bond yields (down to 4.14%) could benefit property stocks and other interest-rate-sensitive sectors.

6. Broker Move:

Genesis Minerals (GMD): Downgraded to Neutral from Overweight by JPMorgan, though target raised to $6.20.

Premium Investments (PRN): Initiated by RBC with a Sector Perform rating, target $19.80.

Super Retail (SUL): Initiated with Sector Perform, target $18.20 (RBC)

7. Stocks Trading Ex-Dividend

Today, stocks trading ex-dividend include:

FFI Holdings (FFI) trades ex-dividend today, paying $0.125 per share.

Our take at Kapitales Research:

• Expect a soft open on the ASX today, led by weakness in financials and energy.
• Gold miners could shine given record-high gold prices.
• REITs and other rate-sensitive sectors might see upside from lower bond yields.
• Keep an eye on banking stocks for any spill over from US credit concerns.

Markets are cautious due to financial sector stress, but strong gold prices and AI momentum are offering some balance. For new investors, this is a good reminder that different sectors move for different reasons — and diversification helps manage that volatility.

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