Market Outlook: ASX Analysis for March 24, 2025 – Positive Trends Forecasted
Last week, the market saw a break in the four-week streak of declines, with the US S&P 500 Index edging up by a mere 0.5% and the ASX 200 closing with a 1.83% gain. Consumer staples stocks like Woolworths Group (ASX: WOW), Coles Group (ASX: COL), and Metcash Limited (ASX: MTS) contributed significantly to the positive movement.
The increase in the Consumer Staples sector by 3.9% might lead some to believe that investors are transitioning to defensive positions. However, another plausible explanation is the recent exoneration of Woolworths, Coles, and Metcash by the ACCC following an investigation into price gouging by supermarkets.
Market analysts attribute the easing of the sell-off at the beginning of the week to potential changes in US President Donald Trump’s tariff policies and remarks by the Chair of the US Federal Reserve, Jerome Powell, declaring that the impact of tariffs on inflation is temporary. The decision by the US Fed and other central banks globally to maintain interest rates also played a role in stabilizing the market.
Speculation about the possibility of two interest rate cuts in 2025 by the US Fed has been positively received by investors, contributing to a rebound in market sentiment. This modest growth halted the rising trend in gold prices.
Looking ahead, the ASX market outlook remains cautious as uncertainty looms due to impending reciprocal tariffs on countries that impose tariffs on US goods, scheduled to take effect on April 2. Economic data for the upcoming week is minimal, with key events including inflation data and Purchasing Manufacturing and Services Indices from both the US and Australia.
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