Source: Kapitales ResearchHeadline

• ASX 200 futures point to a weaker opening despite a strong overnight performance on Wall Street.
• US equities advanced sharply after the US-Iran ceasefire announcement and reopening of the Strait of Hormuz, pushing the S&P 500 and Nasdaq closer to record highs.
• Oil prices fell to their lowest levels since March as easing Middle East tensions reduced concerns over global energy supply disruptions.
• Fox shares declined around 15% following its US$22 billion Roku acquisition deal, while SpaceX extended its post-IPO rally ahead of expected Nasdaq-100 inclusion.

Global Markets Overview

Global equity markets delivered a strong performance as easing geopolitical tensions in the Middle East boosted investor confidence and supported a broad-based risk-on rally. US markets led gains, with the Nasdaq Composite surging more than 3% on strong technology sector performance, while the Dow Jones closed at a fresh record high. The S&P 500 also advanced sharply, moving closer to its all-time high as investors welcomed signs of improving stability in global energy markets.Japan's Nikkei 225 jumped nearly 5%, supported by positive global sentiment and expectations surrounding monetary policy developments. India and Canada's S&P/TSX Composite also posted solid gains, reflecting continued strength in investor appetite for equities. Meanwhile, the FTSE 100 and New Zealand's NZX 50 underperformed, closing modestly lower.Overall, declining market volatility, lower oil prices, and optimism surrounding geopolitical developments provided a favourable backdrop for global equities.Commodities & Crypto

Commodity markets were mixed overnight as investors responded to easing geopolitical tensions and shifting energy market dynamics. Gold advanced more than 2%, supported by continued demand for safe-haven assets and expectations surrounding future monetary policy. Copper also moved higher, reflecting optimism toward long-term demand from electrification, artificial intelligence infrastructure, and renewable energy projects.Uranium emerged as the strongest performer, surging 6.66% amid continued investor interest in nuclear energy and expectations of tightening supply conditions. In contrast, crude oil prices fell sharply after the reopening of the Strait of Hormuz reduced concerns over potential supply disruptions, leading to a significant unwinding of the geopolitical risk premium.Silver edged lower despite strength in other precious metals, while Bitcoin recorded modest gains as improving risk sentiment encouraged flows into digital assets. Overall, commodity markets reflected stronger confidence in economic growth prospects alongside easing geopolitical uncertainty.Bond Yields

Government bond yields edged higher across major markets as investors balanced improving risk sentiment with expectations that interest rates may remain elevated for longer. Investors remained focused on upcoming central bank decisions, particularly from the RBA, Federal Reserve, and Bank of Japan.Australian bond yields moved higher as markets assessed the outlook for interest rates and inflation. US Treasury yields were largely unchanged despite strong gains in equity markets and falling oil prices, indicating a balanced view on economic growth and inflation.Japan's 10-year bond yield remained elevated as investors continued to expect further interest rate increases from the Bank of Japan. Overall, bond markets reflected a cautious approach ahead of key policy announcements and economic data releases.Key Drivers

• The Nasdaq recorded its strongest session since March as technology shares led gains.
• SpaceX extended its post-IPO rally, supported by expectations of a fast-track inclusion into the Nasdaq-100 Index.
• Gold and copper prices advanced as investors-maintained exposure to key commodity themes.
• Oil prices declined sharply after concerns regarding Gulf shipping disruptions eased.
• Investors continued monitoring this week's Federal Reserve meeting for policy guidance.
• The US-Iran ceasefire framework boosted market sentiment, reducing geopolitical concerns and supporting risk assets.
• Nvidia plans to raise between US$20 billion and US$25 billion through a bond offering, its first debt issuance in five years.
• Expectations for further RBA tightening eased, reducing pressure on interest-sensitive sectors.

ASX Company News

• Contact Energy Limited (ASX: CEN) reported improved operating performance for May 2026, with mass market electricity and gas sales increasing to 461 GWh from 365 GWh in May 2025. Contracted wholesale electricity sales rose to 1,027 GWh, while electricity generated or acquired increased to 1,034 GWh. The company also highlighted progress across its renewable energy pipeline, including the Kōwhai Park Solar project and Te Mihi Stage 2 geothermal development.
• Southern Cross Electrical Engineering Limited (ASX: SXE) announced the successful completion of a fully underwritten institutional placement, raising AU$150 million through the issue of approximately 37.5 million new shares at AU$4.00 per share. The proceeds will support working capital requirements for newly awarded projects and provide flexibility for future acquisition opportunities. The company also plans to launch a Share Purchase Plan targeting up to AU$15 million from eligible shareholders.

Key Economic Drivers (What to Watch Today)

• 12:30 pm (AEST) – China House Price Index: Update on China's property market conditions.
• 1:00 pm (AEST) – China Industrial Production, Retail Sales & Fixed Asset Investment: Key indicators of economic growth and commodity demand.
• 2:00 pm (AEST) – BoJ Interest Rate Decision: Markets expect a 25-basis-point rate hike to 1.0%.
• 3:30 pm (AEST) – RBA Interest Rate Decision: The RBA is expected to keep the cash rate unchanged at 4.35%.
• 11:30 pm (AEST) – US Building Permits & Housing Starts: Important data on the strength of the US housing market.
• Market Focus: Investors will monitor central bank commentary for signals on future interest rate and inflation trends.

Summary 

• ASX 200 Futures Point to a Weaker Open as Investors Assess Central Bank Decisions.
• US markets strengthened considerably as easing geopolitical tensions improved investor confidence and reduced volatility.
• The sharp decline in oil prices may ease inflation concerns globally and support broader equity market sentiment.
• Gold and copper continue attracting investor interest amid favourable long-term demand fundamentals.
• Uranium rallied 6.66%, supported by expectations of increasing investment in nuclear generation capacity worldwide.
• SpaceX's strong post-listing performance has renewed appetite for high-growth and innovation-focused companies.
• Central bank decisions from the BoJ, RBA, and Federal Reserve remain key catalysts for near-term market direction.
• China's economic releases will be closely watched for indications of commodity demand and regional growth momentum.
• While geopolitical risks have moderated, policy developments and monetary tightening expectations continue to warrant close monitoring.
  
   

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