Source: Kapitales ResearchHeadline

• ASX 200 futures indicate a firmer start after Wall Street ended mixed.
• Micron Technology jumped 15.7% on stronger-than-expected earnings and a record US$50 billion revenue outlook, while Apple and Microsoft declined after announcing hardware price increases.
• Wall Street finished mixed after giving up early gains, with the Dow Jones up 0.14% near record levels, the S&P 500 broadly flat, and the Nasdaq falling for a fourth straight session.
• Hot US May PCE inflation lifted expectations of a possible Fed rate hike, while oil prices rebounded after renewed tensions in the Strait of Hormuz.

Global Markets Overview

Global equity markets traded mostly higher, although US technology shares remained under pressure as the Nasdaq Composite declined 0.46%. The Dow Jones gained 0.14% to finish near record territory, supported by strength in industrial and healthcare stocks, while the S&P 500 ended largely unchanged after giving up earlier gains. The Nasdaq extended its losing streak to a fourth consecutive session, weighed down by weakness in Apple and Microsoft. European markets remained resilient, with the FTSE 100 advancing 0.65%. Canada’s S&P/TSX Composite rose 0.33%, supported by gains in commodity-linked shares. In the Asia-Pacific region, Japan’s Nikkei 225 surged 4.61%, outperforming regional peers, while India also closed higher, reflecting continued investor confidence. New Zealand’s NZX 50 advanced 0.69%, indicating positive sentiment across domestic equities. Overall, market sentiment remained constructive, supported by sector rotation into cyclicals and defensives, although inflation concerns and pressure on mega-cap technology stocks kept investors cautious.Commodities & Crypto

Commodity markets delivered a mixed performance overnight, with gains in gold, crude oil and copper offsetting declines in uranium and silver, while cryptocurrency markets remained under pressure. Gold advanced 0.69% as investors sought safe-haven assets amid persistent inflation concerns and geopolitical tensions, while WTI crude oil climbed 1.71% following renewed security risks in the Strait of Hormuz. Copper gained 2.02%, supported by improving industrial demand expectations and stronger sentiment across base metals. In contrast, uranium prices declined 2.99%, extending recent weakness, while silver edged 0.48% lower. Bitcoin also remained under pressure, falling 1.33% as stronger US inflation data fuelled expectations of tighter monetary policy and dampened risk appetite across digital assets.Bond Yields

Government bond yields remained relatively stable, with modest increases in Australian and US benchmark yields reflecting persistent inflation concerns and expectations that central banks may maintain a restrictive monetary policy stance. Australia's 10-year government bond yield rose to 4.743%, while the US 10-year Treasury yield edged up to 4.398% following stronger-than-expected inflation data that reinforced the prospect of further Federal Reserve policy tightening. Japan's 10-year government bond yield held at 2.631%, while the US 30-year Treasury yield remained elevated at 4.859%. Overall, bond markets reflected cautious investor sentiment as market participants continued to assess inflation trends, central bank policy expectations, and the broader global economic outlook.Key Drivers

• Wall Street ended mixed as the Dow Jones gained while the Nasdaq declined for a fourth consecutive session.
• Apple fell 6% and Microsoft declined 3.4% after announcing hardware price increases linked to rising AI memory costs.
• May US core PCE inflation accelerated to 3.4% annually, strengthening expectations of further Federal Reserve tightening.
• Oil prices advanced after Iran attacked a cargo vessel in the Strait of Hormuz, renewing geopolitical concerns surrounding energy supply routes.
• The European Union approved a trade agreement with the US, while trade negotiations between the US and India concluded without reaching a final agreement.
• Bank of Japan policymakers continued to signal further monetary policy normalisation, while Australia's improving employment and household spending data pointed to continued economic resilience.

ASX Company News

• Regis Resources Limited (ASX: RRL) has announced an initial Open Pit Mineral Resource at the Beamish South deposit of 7 million tonnes at 1.1 g/t gold for 270,000 ounces within a AU$3,900/oz pit shell. The company also reported encouraging exploration results across its Duketon, McPhillamys and Tropicana operations, with ongoing drilling continuing to expand mineralisation and support future resource growth and potential mine-life extensions.
• 4DMedical Limited (ASX: 4DX) has received Therapeutic Goods Administration (TGA) approval for its CT:VQ™ functional lung imaging solution in Australia, enabling commercial deployment nationwide. The approval expands CT:VQ™s regulatory clearance to six major markets and supports the company's Medicare reimbursement strategy through the Medical Services Advisory Committee (MSAC), strengthening its global commercialisation strategy.
• Ioneer Limited (ASX: INR) has secured a conditional award from the US Army for a long-term land lease at the Tooele Army Depot to establish a boron processing facility. The project supports the US strategy to strengthen domestic critical mineral supply chains and advances the development of Ioneer's Rhyolite Ridge Lithium-Boron Project, home to North America's only undeveloped boron ore reserve.
• Qualitas Limited (ASX: QAL) has increased its long-term Australian funds management EBITDA margin target to above 60%, from above 50%, driven by expected operational efficiencies from its proprietary AI platform, ongoing scale benefits and disciplined cost management. The company expects its AI initiatives to enhance investment processes and strengthen long-term operating leverage.

Stocks trading ex-dividend today:

• Centuria Capital Group (ASX: CNI) – Dividend of AU$0.052 per share.

Key Economic Drivers (What to Watch Today)

• Federal Reserve interest rate expectations will continue to influence market sentiment after stronger US core PCE inflation increased the likelihood of further policy tightening.
• Commodity-linked ASX sectors may find support following overnight gains in gold, crude oil and copper prices, benefiting mining and energy companies.
• Developments in the Strait of Hormuz will remain closely watched, with geopolitical tensions capable of influencing global energy prices and broader market sentiment.

Summary 

• ASX 200 futures signal a stronger start despite a mixed close across US equity markets overnight.
• Technology giants remained under pressure as Apple and Microsoft announced product price increases amid rising AI-related component costs.
• Stronger US inflation data increased expectations that the Federal Reserve may resume interest rate hikes later this year.
• Australia's improving employment and household spending trends continued to highlight resilience in the domestic economy.
• Bitcoin slipped below the US$60,000 mark, reflecting weaker sentiment across cryptocurrency markets amid renewed Fed rate hike expectations.
• Investor sentiment is expected to remain focused on inflation data, central bank policy signals, commodity price movements and geopolitical developments.

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