AUS
NZ
UK
CA
USA
IND
Highlights
- ASX 200 futures edge lower amid Middle East concerns
- Gold approaches record high as safe-haven demand strengthens
- Labour market data and RBA decision await investor focus
Australia's share market is poised for a soft start to the week, with ASX 200 futures down 20 points or 0.23% at 8:30 am AEST. The cautious sentiment follows renewed tensions in the Middle East after Iran's weekend retaliation with missile and drone strikes against Israel, amplifying geopolitical risk across global markets.
Despite the backdrop, the ASX 200 managed a 0.37% gain last week, closing at 8,547 after hitting a midweek high of 8,639. Energy and Utilities were standout sectors, climbing 6.49% and 4.68% respectively. Information Technology, Materials, and Healthcare edged slightly lower.
Among standout performers, Zip Co (ASX:ZIP) surged 21.92%, driven by momentum within the BNPL segment. Bubs Australia (ASX:BUB) rose 14.29%, and Star Entertainment Group (ASX:SGR) advanced 13.04%. On the downside, Cettire (ASX:CTT) plunged 38.82%, Coronado Global Resources (ASX:CRN) declined 21.62%, and Appen (ASX:APX) slipped 10.92%.
Markets are keeping a close watch on the upcoming May labour force data, scheduled for release on Thursday. Consensus forecasts suggest the addition of 20,000 jobs, keeping the unemployment rate at 4.1%. Should the report show mild employment growth, expectations for a July rate reduction by the Reserve Bank of Australia (RBA) could strengthen, with markets already pricing in an 80% probability for a 25 basis point cut to 3.60%.
Overseas, Wall Street ended the week lower, with the Dow Jones dropping 1.32%. The Nasdaq and S&P 500 also fell, slipping 0.60% and 0.39% respectively. The spike in oil prices—up 7%—reflected concerns about escalating conflict. European markets echoed the negative sentiment, as the FTSEurofirst 300 index fell 0.9%.
The United States Federal Reserve is widely expected to maintain its current interest rate of 4.25%–4.50% in its upcoming meeting. Despite soft economic data, persistent core inflation at 2.5% has encouraged a cautious stance. Market pricing currently reflects an anticipated 54 basis points of easing by December.
In commodities, gold surged as investors sought safety, jumping US$50.40 or 1.5% to US$3,452.80 per ounce. Spot gold hovered near US$3,432 by Friday's close. The precious metal has now gained 3.2% over the week, moving closer to April’s record high.
Meanwhile, base metals dipped slightly. Copper futures fell 0.4%, while aluminium edged down 0.2%. Iron ore also recorded a minor decline of 0.1%, settling at US$95.38 per tonne, after the United States announced plans for a 50% tariff on additional steel derivative imports.
In the small-cap segment, the S&P/ASX Small Ordinaries Index fell 0.39% on Friday, ending the week down 0.61%.
On the corporate front, West Wits Mining (ASX:WWI) secured approximately A$14 million through a strategic placement to support development activities. Dynamic Metals (ASX:DYM) concluded the second phase of RC drilling at its Cognac West gold prospect, aiming to build on earlier success. Asian Battery Metals (ASX:ABM) reported encouraging results from its Mongolian drilling campaign, expanding its exploration footprint. Additionally, archTIS (ASX:AR9) achieved a significant milestone with its NC Protect software now validated for deployment in the US Department of Defense cloud.
As tensions ripple through markets, investors remain watchful of macro signals, central bank cues, and sector-specific developments shaping the near-term outlook.
