Market Wrap / lights stay on

The ASX closed the session down 0.7%, weighed by uncertainty due to thin trading in the US for Martin Luther King Jr Day and tariff fears in Europe following strong language from President Trump regarding Greenland. Six out of 11 sectors finished lower, as investors digested mixed data from China and renewed concerns in the property and consumer markets. Origin Energy (ASX:ORG) saw its Newcastle power station closure extended, which unions see as providing more transition time for workers. RBC Capital Markets notes the extension may stabilise power prices in New South Wales.,BHP (ASX:BHP) captured attention with a mixed quarterly update, posting record iron ore production but reporting higher costs at its potash project in Canada. Northern Star (ASX:NST) upped its cost guidance, while Bellvue Gold (ASX:BGL) reaffirmed its production outlook. ARB (ASX:ARB) was singled out as the day’s worst performer, its shares crashing to a three-year low after forecasting weaker first-half earnings. Zero (ASX:XRO), Technology One (ASX:TNE), and HUB24 (ASX:HUB) were also mentioned as companies showing resilience or value in the face of technical selloffs.,Jorge Barberis from K2 Asset Management expresses optimism for equities in 2026, citing 12–15% EPS growth forecasts for the S&P 500, robust AI-led productivity gains, and favourable US economic conditions. He highlights volatility as a normal part of the cycle, viewing corrections as buying opportunities.,Key points:
- ASX and global markets face headwinds from geopolitical headlines and Chinese economic data
- Major ASX stocks highlighted include BHP, Origin (ASX:ORG), ARB (ASX:ARB), Northern Star (ASX:NST), Bellvue Gold (ASX:BGL), Zero (ASX:XRO), Technology One (ASX:TNE), and HUB24 (ASX:HUB)
- AI and US policy are seen as powerful drivers for equities despite expected market volatility
- A 10–15% market correction is considered healthy and a buying opportunity by Barberis