Good morning. Wall Street rebounded overnight, the S&P 500 up 1.2 per cent to 7,440 and the Nasdaq up 2.1 per cent to 25,820, as semiconductor and megacap technology shares recovered part of last week's selloff and a wave of corporate deal news lifted sentiment. Comcast led that news, announcing it will spin off NBCUniversal and Sky into a separate listed company. Treasuries were steady, the US 10-year yield at 4.37 per cent, with money markets still leaning toward the Federal Reserve's next move being a rise rather than a cut. Brent crude rose 2.3 per cent to US$73.64 after the United States and Iran agreed to halt strikes in the Gulf, while gold fell 1.2 per cent to US$4,030 as that easing in tension reduced haven demand.
The Supreme Court blocked President Donald Trump from removing Federal Reserve governor Lisa Cook, splitting 5 to 4 to keep her in place, and in a separate ruling gave the president a freer hand over other independent agencies. Trump renewed his threat to fire Cook after the decision. The US dollar eased 0.2 per cent on the DXY to 101.12. In Europe, ECB president Christine Lagarde told the bank's Sintra forum it could raise rates to address inflation without fear of causing financial stress.
Locally, the RBA cash rate stands at 4.35 per cent, and Assistant Governor Christopher Kent set out a new framework for the bank's additional policy tools, reaffirming that the cash rate remains its primary instrument. The Australian dollar traded at US68.94 cents, down 1.4 per cent over five sessions, with iron ore steady at US$100.33 a tonne. Neuren Pharmaceuticals and Ramelius Resources were among the local companies with news, and the RBA's June meeting minutes are due today.
Kent said the cash rate stays the primary instrument and the framework sets four tests for deploying other tools; the bank's June meeting minutes are due today.
The Australian dollar traded at US68.94 cents, flat overnight but down 1.4 per cent over five sessions and up 5.5 per cent over the year, with the US dollar index at 101.12.
Gold fell 1.2 per cent to US$4,030 an ounce, down 3.6 per cent over five sessions and a headwind for producers Northern Star and Evolution Mining; copper rose 0.5 per cent to US$13,610 a tonne.
In a separate decision the court gave the president broader power to remove officials at other independent agencies; Trump renewed his threat to fire Cook after the ruling.
Money markets price at least 34 basis points of Fed tightening across 2026, leaning toward a rise rather than a cut, with May inflation near 4.2 per cent year on year, more than double the 2 per cent target. Fed chair Kevin Warsh appears at the Sintra forum this week.
The euro rose 0.4 per cent to US$1.1427, though it is down 2.6 per cent over the past year; German inflation data is due.
A European Commission approval would trigger a US$35m payment to Neuren on first commercial sale, with tiered royalties and up to US$170m in further sales-based milestones.
Completion is targeted for the September 2026 quarter and is conditional on Forrestania raising at least A$200m in equity and on Ramelius shareholder approval; Ramelius would become a substantial holder in Forrestania.
The shift reflects how quickly battery storage and renewables are scaling in the national electricity market relative to earlier projections.
Brent rose 2.3 per cent to US$73.64 a barrel and West Texas Intermediate 1.7 per cent to US$70.42, though both remain down more than 5 per cent over five sessions.
The new company will house NBC, Telemundo, Bravo, Peacock, Universal's film studio and theme parks and Sky; co-chief executive Mike Cavanagh will run it, while Brian Roberts remains chief executive of Comcast.
The move recovered part of the prior week's decline, with the Nasdaq still down 1.3 per cent over five sessions after investors had trimmed AI-linked exposure.
The trial supported the drug's regulatory approval; the retraction followed findings by the US Food and Drug Administration.
Golden Pass is one of the newest US liquefied natural gas export plants; ExxonMobil holds the venture jointly with QatarEnergy.
“Although today's focus is on additional tools, the cash rate target remains our primary and preferred instrument for achieving low inflation and full employment.”
“Resilience means the ECB can raise rates to address inflation without fear it becomes a source of financial stress.”
“Not only the fact of independence but also the appearance of independence is key to the Federal Reserve's design.”
“Corporate profit growth drove essentially all of the S&P 500's gains over the past year.”
“It has been strong throughout the first half of the year, despite the war and the disruption to energy markets.”
“This is not about separating what we built together, it's about positioning two exceptional businesses to move forward with greater focus, agility, and the ability to fully capitalize on the opportunities ahead.”
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.