3 June Markets at a Glance
Around the grounds:
- Miners & financials boost ASX
- Hope for rate cuts drives global equities higher
- US data bolsters expectations of a rate cut as early as Sept
- FX markets tread water
- Oil in focus as OPEC+ extends most output cuts
- Gold lacks direction; tech falls
The Australian share market is grinding higher to start the month of June, driven by financial and mining stocks as investor sentiment improved after data on Friday showed U.S. inflation stabilised in April, keeping the chance for a rate cut as early as September alive.
Friday’s PCE data, the Federal Reserve’s favoured inflation indicator, increased in line with market consensus, with expectations of a September rate cut rising to more than 55%, compared with 48.7% before the data, according to the CME FedWatch Tool.
In Forex, global currency markets are treading water with the US dollar slightly lower amid investor caution. For the month of May, the greenback posted its first monthly decline of the year, weighed down by uncertainty on when the U.S. Federal Reserve will cut rates and by how much.
Back on the local bourse, miners are the biggest gainers, followed by rate-sensitive financial stocks.
Energy is higher, while gold struggles to find direction. The tech sector however is lower, tracking its peers on Wall Street.
Looking at fixed income, the Australian government has launched its first Green Treasury Bond, aiming for an issue of around AU$7 billion. The program will allow investors to back public projects that drive Australia’s transition to net-zero emissions by 2050. The issue is expected to be priced tomorrow and settle on Friday.
Stock specific shares of Australian listed Lovisa (LOV) have taken a dive after the fashion jewellery retailer announced its current CEO Victor Herrero will be leaving at the end of May 2024, naming John Chester as the new Chief Executive, and managing director.
In the smaller-end of town Australian listed Booktopia (BKG) is also under pressure as the online book retailer pulls its guidance, and withdraws the forecast provided in February due to a drop in revenue.
Finally shares of Patriot Lithium (PAT) have hit a record low as the company’s planned 2024 drilling programme for its lithium project in Ontario is temporarily suspended after the Sandy Lake First Nation community says the company does not have its permission to proceed with the planned work.
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