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7 June Markets at a glance

ASX rallies as commodities gain, gold & iron ore rebound, Insurance Australia Group touches four-year high and the US Dollar nears an eight-week low ahead of key NFP data.

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.

 

All prices and analysis at 7 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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