Dollar Set for Weekly Advance

The S&P/ASX 200 Index opened flat to around 8,589 on Friday, and on track for its first weekly decline in three, as investors weighed fresh US tariff actions from President Donald Trump.

On Thursday, Trump announced a 35% tariff on Canadian imports starting August 1, citing Ottawa’s retaliatory tariffs.

He added that the EU would also be notified of new tariff rates "today or tomorrow” and signaled plans to apply blanket tariffs of 15% to 20% on most other trade partners.

In Australia, expectations for a rate cut in August are building, with markets now priced in at 89% probability, after the central bank’s surprise decision to hold rates steady earlier this week.

On the corporate front, heavyweight miners continued to rally to a near one-month high amid stronger commodity prices, with BHP up 2.6%, Fortescue 3.1%, and Rio Tinto 2.4%.

On the downside, healthcare stocks remained under pressure, down nearly 1%, led by biotech giant CSL (-0.6%).

US stock futures held steady on Friday following another strong session on Wall Street, where both the S&P 500 and Nasdaq Composite closed at fresh record highs.

On Thursday, the S&P 500 rose 0.27%, the Nasdaq edged up 0.09%, and the Dow advanced 0.43%, as investors largely brushed off the latest tariff escalations from the Trump administration, including new 50% duties on copper imports and Brazilian goods.

President Donald Trump also signaled that fresh tariff proposal letters could be sent to Canada and the European Union as soon as today.

In corporate news, Nvidia added 0.75%, extending gains after becoming the first public company to surpass a $4 trillion valuation, further fueling the AI-driven tech rally.

Tesla jumped 4.7% on optimism around its robotaxi expansion and plans to integrate xAI’s Grok chatbot into its vehicles.

Delta Air Lines surged 12% after reaffirming its full-year earnings guidance, lifting sentiment in the travel sector.

New Zealand's manufacturing sector stayed in contraction in June, with only slight improvement amid ongoing pressure across key areas, according to a Friday report by BusinessNZ.

The BusinessNZ Performance of Manufacturing Index rose to 48.8 in June from 47.4 in May. The index has remained below the 50-point mark, indicating contraction.

"Looking across the PMI sub-indices, they all remain well below their historical averages. Despite talk of an economic recovery, conditions are still very tough," said BNZ senior economist Doug Steel.

The year's positive start is fading as most manufacturing areas struggle, with four of five key sub-index values "were in decline", said BNZ Director Catherine Beard.

Finished stocks dropped to 46.9 in June from 50.8 in May, their lowest since December 2024. Employment remains in contraction, albeit slower, at 47.9 from 45.5.

New orders crossed into expansion territory at 51.2 from 45.4. Production rose to 48.6 from 47.9, inching toward the neutral mark, while deliveries fell to 47.7 from 48.7.

Meanwhile, the proportion of negative comments from respondents rose marginally to 65.5% in June from 64.5% in May.

Some manufacturers report a sharp slowdown due to weak consumer demand, high living costs, and economic uncertainty, with falling construction, rising input costs, global instability, and supply chain issues further straining orders and cash flow, the report said.