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3 June Markets at a Glance

Global equity markets bolstered by rate cut optimism, OPEC+ extends cuts, gold lacks direction, tech falls & Lovisa shares plunge on a C-suite shake up.

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.

All prices and analysis at 3 June 2024.  The content is distributed by WealthHub Securities Limited (WSL) (ABN 83 089 718 249)(AFSL No. 230704). WSL is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited (ABN 12 004 044 937)(AFSL No. 230686) (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer.  This material is intended to provide general advice only. It has been prepared without having regard to or taking into account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.  Past performance is not a reliable indicator of future performance.  Any comments, suggestions or views presented do not reflect the views of WSL and/or NAB.  Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice including any third party sourced data (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable. For more information, please click here.

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