7 June Markets at a glance

Around the grounds:

• ASX set for best week in four
• Miners rise as price of iron ore rebounds
• Gold stocks gain as bullion hits two-week peak
• USD hovers near an eight-week low ahead of a crucial non-farm payrolls report

The S&P/ASX200 is set to end the week on solid ground, with shares on track for their best week in four bolstered by commodities. The index has gained around 2% so far this week.

The miners are set for their biggest intraday percentage gain since May 20, as iron ore futures rebound after a five-session losing streak, however the sub-index is expected to mark its third straight weekly loss.

Gold players are also a bright spot, to hit a 10-day peak after the price of gold hit a two-week high in the overnight session but has since given back some of those gains.

Energy is also firmer on stronger oil prices, while financials are tracking lower.

In the news

Australian listed shares of Insurance Australia Group (IAG) are the days outperformers, touching a four-year high as the company forecasts its gross earning premium to increase in the second half of 2024.

Elsewhere, Australian listed shares of Beach Energy (BPT) are in the red after Citi downgraded the stock to ‘neutral’ from ‘buy’ and trimmed its price target by 6% to $1.60/share. The broker says while it expects the outcome of the company’s strategic review to be positive for the stock, it sees downside risk to earnings and valuations and flags a possible negative share price reaction following adjustments to consensus forecasts.

Finally, Peter Warren Automotive (PWR) has named Andrew Doyle as the companies new CEO after the company announced Mark Weaver will be stepping down from the top spot at the end of the financial year, with Paul Warren appointed as interim chief executive until Doyle begins.

Going global

Bigger picture, shares across the Asian region are set to snap a two-week losing streak after the Bank of Canada and the ECB both cut interest rates, signalling the beginning of a global easing cycle. All eyes now are on tonight’s non-farm payrolls report state side for further insight into the labour market and any hints on the timing of an FOMC rate cut. Forecasts are for around 185,000 jobs to be created last month.

MSCI’s broadest index of Asia-Pacific shares outside Japan is tracking global stocks higher, with the index expected to post a near 3% gain for the week. Hong Kong’s Hang Seng is up, while Chinese blue chips are edging higher.

The greenback is hovering near an eight-week low ahead of that NFP report, the euro meantime held gains after the ECB cut rates for first time in five-years, while sterling remains little changed.

Forex players are watching the USD/JPY cross ahead of the Bank of Japan’s interest rate decision next week, consensus is building for the BOJ to reduce the monetary authority’s monthly government bond purchases.

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