Source: Kapitales Research

Headline

• ASX 200 futures indicate a softer start, declining by 23 points (-0.26%), suggesting cautious sentiment at the open. 
• US markets continued their upward trajectory, with the S&P 500 and Nasdaq closing at fresh record highs, supported by technology stocks. 
• Investor sentiment remains mixed as strong earnings momentum is offset by geopolitical tensions and weakness in broader market participation.

Global Markets Overview

Global markets delivered a mixed performance. US indices advanced, with the S&P 500 and Nasdaq extending gains to fresh highs, supported by strength in technology stocks. In contrast, the Dow Jones declined modestly, reflecting weakness in cyclical sectors. The United Kingdom market closed marginally lower, reflecting cautious sentiment, while Canada also recorded a slight decline.

Asia-Pacific markets were mixed, with Japan posting gains, whereas India closed lower. New Zealand also recorded a positive performance. The overall market trend reflects cautious investor sentiment amid persistent geopolitical and macroeconomic uncertainties.

Commodities & Crypto

Commodity markets traded on a mixed footing. Crude oil prices declined, reversing part of the recent upward momentum. Gold remained broadly stable, indicating a balanced safe-haven positioning. Silver outperformed, supported by both investment demand and industrial usage trends. Copper registered gains, reflecting steady but cautious expectations around global industrial activity. Uranium prices moderated following recent strength, while Bitcoin posted gains, suggesting resilience in digital asset sentiment.

Bond Yields

Global bond yields trended marginally lower across major markets, indicating a slight easing in rate expectations. US Treasury yields declined across the curve, reflecting a moderation in inflation concerns and a reassessment of the policy outlook by market participants. Australian bond yields also softened, broadly tracking global movements amid expectations around domestic monetary tightening.

Japan’s 10-year yield remained relatively stable, consistent with the Bank of Japan’s accommodative policy stance. Overall, the downward movement in yields suggests improving financial conditions, although uncertainty around inflation and central bank actions continues to influence market direction.

Key Drivers

• Technology-led earnings momentum: US large-cap technology stocks continue to underpin broader market performance, supported by strong earnings delivery and sustained capital expenditure in artificial intelligence and cloud infrastructure. This trend is reinforcing long-term growth expectations, particularly across AI-linked segments.
• Geopolitical developments influencing sentiment: Persistent tensions between the US and Iran continue to act as a key overhang for global markets. Uncertainty surrounding potential escalation and its impact on energy supply chains is contributing to heightened volatility across asset classes. 
• Energy market dynamics and supply outlook: OPEC+ will raise output by 188,000 barrels per day from June, marking its first move after the UAE’s exit, with the next meeting set for 7 June. 

1. Stocks Trading Ex-Dividend

• Bank of Queensland Limited (ASX: BOQ): Trading ex-dividend today with an interim dividend of AU$0.20 per share.

1. ASX Company News

• National Australia Bank Ltd (ASX: NAB): NAB reported 1HFY26 cash earnings of AU$2,639 million and statutory net profit of AU$2,750 million, with underlying earnings of AU$3,588 million after adjusting for AU$949 million software-related charge. Revenue increased 3.1%, supported by lending growth and improved Markets & Treasury income, while Australian business lending rose 5.6%. Asset quality weakened slightly, with credit impairment charges rising to AU$706 million, alongside higher forward-looking provisions reflecting a cautious stance amid macroeconomic uncertainty.
• Weebit Nano Ltd (ASX: WBT): The company announced that two customers have completed chip tape-outs using its ReRAM technology, representing a key step toward commercialisation. One customer has already developed a working prototype, indicating early-stage validation. These developments support Weebit’s 2026 objectives and signal progress toward potential mass production over the next 12–18 months, subject to further testing and qualification. 
• PYC Therapeutics Ltd (ASX: PYC): The company confirmed that clinical data from its Phase 1/2 trials for VP-001 and PYC-001 will be presented at the ARVO conference in the United States. These programs target rare genetic eye disorders, including Retinitis Pigmentosa and Autosomal Dominant Optic Atrophy, with both therapies positioned as potential first-in-class treatments addressing underlying genetic causes.

1. Key Economic Drivers (What to Watch Today)

• Economic data (Australia): Building permits and job ads data today will provide signals on the housing market and employment trends. 
• Softness in crude oil prices: Energy markets are under pressure following incremental production increases from OPEC+, which may weigh on energy equities.
• The RBA is expected to increase the cash rate by 25 basis points to 4.35% at its upcoming meeting, marking a third consecutive hike, as inflation rose to 4.6% in March, remaining well above the 2–3% target range.

1. Summary 

• ASX expected to open weaker: Futures indicate a subdued start, as investors monitor domestic economic data, oil price softness, and expectations of further RBA rate hikes.
• Geopolitical risks remain a key overhang: Ongoing tensions, particularly in the Middle East, continue to influence market dynamics.
• Bond yields softened across major economies, indicating easing inflation expectations and slightly improved financial conditions, though uncertainty around central bank policy remains.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events. 

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au