Good morning. Wall Street finished the week lower. The S&P 500 closed little changed at 7,354 on Friday and the Nasdaq slipped 0.2% to 25,298, its fifth straight losing session, with chipmakers leading the retreat. A New York Times report that OpenAI may delay its initial public offering to next year added to nerves about AI valuations. Over five sessions the S&P 500 fell 2.0% and the Nasdaq 4.6%. Treasury yields eased, the 10-year down 1 basis point to 4.40% and 9 basis points lower on the week, with the 2-year at 4.09%.
Oil and trade drove the rest of the overnight news. Brent crude fell 2.2% to US$73.57, down 7.9% over five sessions and back to levels last seen before the Iran conflict, as Gulf shipping normalised and Iran prepared to lift exports under a US sanctions reprieve. Gold rose 1.8% to US$4,103 and copper 2.1% to US$13,663. Donald Trump threatened a 100% tariff on any country that imposes a digital services tax, days before the 4 July deadline to begin implementing the EU-US trade deal that caps most tariffs at 15%; the European Commission said it would respond swiftly and decisively.
Locally, the ASX 200's most recent close was 8,749, down 0.7% and a two-week low, with the gold miners among the heaviest. The Australian dollar held at US69.01 cents, down 1.5% over five sessions, and the 10-year ACGB yield eased 1 basis point to 4.77%. The RBA has left the cash rate at 4.35%, with Deputy Governor Andrew Hauser saying inflation remains far too high, and ASIC has put private-credit funds on notice ahead of their 30 June valuations.
The RBA's May projections had headline inflation peaking at 4.8% in the June quarter; markets are pricing steady policy in the near term.
The 10-year ACGB yield eased 1 basis point to 4.77% and is up 62 basis points over the past year.
Its survey covered 22 managers, 52 funds and about $76 billion in assets; the end-of-financial-year reporting cycle is now upon the sector.
The threat lands days before the 4 July deadline to implement the EU-US trade deal, which caps most tariffs at 15% but excluded digital taxes; the European Commission said it would respond swiftly and decisively.
The Fed held rates at its June meeting and signalled a possible increase; nine of 18 officials project a 2026 hike.
Gulf shipping has normalised and Iran is set to lift exports under a US sanctions reprieve; gold rose 1.8% to US$4,103.
The review is ongoing, according to the report; NAB is one of the four major banks that dominate Australian lending.
The sale covers 904 residences and continues Lendlease's programme of exiting international markets and returning capital.
Golding also took a $41 million to $45 million contract from Anglo American to build a rail diversion near Moranbah in Queensland; the company said neither award requires material capital.
Copper is up 22.3% over the past year; BHP, Rio Tinto and Fortescue are among the ASX-listed producers leveraged to the move.
The Nasdaq fell 4.6% over five sessions and the S&P 500 2.0%; a New York Times report that OpenAI may delay its initial public offering to next year added to the pressure.
The product is aimed in part at users aged 18 to 34, according to the report.
AbbVie said it is the first and only IL-23 inhibitor approved in the US for patients aged six and older with the conditions.
The change tightens the screening Uber applies before drivers can use its platform.
“Any country that imposes such a tax will immediately be met with a 100% tariff on any and all goods sent to the United States of America.”
“The commitment to deliver [price stability] is strong, unanimous and unambiguous.”
“We still have work to do to reduce inflation, which remains far too high.”
“End investor demand for tech stocks has flipped from dip buying to upside chasing for the first time in roughly 12 months.”
“Asset valuations must be current, accurate and based on realistic assumptions.”
“What I didn't realise until I got in is the amount of work that needed to be done and the amount of time it would take to get us to where we want to go.”
For wholesale clients only. Prepared by Arc Point OCIO Pty Ltd (ACN 693 569 765), Corporate Authorised Representative (CAR 1319046) of Capella Advisory (AFSL 550125), for wholesale clients within the meaning of the Corporations Act 2001 (Cth); it is not intended for, and should not be relied on by, retail clients. This note is factual market reporting and general information, with any arcpoint view clearly labelled as such. It is not personal advice and does not take into account any person's objectives, financial situation or needs. Information is drawn from sources believed to be reliable but its accuracy and completeness are not guaranteed. Past performance is not a reliable indicator of future performance.
Sources: Yahoo Finance, FRED, RBA, company filings.