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June 04, 2026
The Markets Brief
ASX Pre-Market · 7:30am AEST
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Opening Note
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Market Bias
Risk-off; US selloff, tariff threats, rising yields
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ASX Read
ASX faces headwinds despite yesterday's +0.70% gain
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Main Driver
Trump 12.5% tariff threat hits AUD and sentiment
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The ASX enters Thursday with the prior session's +0.70% gain at 8,785.7 likely to give way to selling pressure, as Wall Street fell sharply overnight — the S&P 500 dropping 0.74% to 7,553.7, the Dow losing 1.21% to 50,687.1, and the Nasdaq off 0.89% to 26,854.0. The dominant catalyst is President Trump's threat to impose a 12.5% tariff on Australia and 60 other trading partners over alleged forced-labour links, which dragged the AUD/USD down 0.70% to 0.7131 and pushed the US 10-year yield up to 4.49%. Copper fell 2.74% to $6.48, a direct pressure point for ASX materials names. Rate-sensitive and consumer-facing stocks face the sharpest re-rating risk. Tech names including Xero (-3.54% to $83.92) and WiseTech (-2.08% to $41.35) were already under pressure in the prior session as yields climbed. Energy is a relative bright spot — WTI oil rose 1.56% to $96.20, supporting Ampol, which gained 3.43% on Wednesday. Miners face a split tape: BHP and Rio held firm on Wednesday, but softer copper and the tariff overhang add downside risk at today's open.
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Market Tape
| S&P 500 fell 0.74% to 7,553.7; Dow -1.21% to 50,687.1; Nasdaq -0.89% to 26,854.0 — broad US selloff flags negative open for ASX growth and cyclical names | | ASX 200 closed +0.70% at 8,785.7 on Wednesday — gains likely to be tested as Wall Street and tariff risk weigh on Thursday open | | AUD/USD fell 0.70% to 0.7131; US 10Y yield rose to 4.49%; copper -2.74% to $6.48 — negative for materials and rate-sensitive ASX sectors | | WTI oil +1.56% to $96.20 vs copper -2.74% — energy and mining sectors diverging, providing selective support within resources |
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The Read
| Trump's 12.5% tariff threat on Australia directly pressures export-oriented industrials and adds a sovereign risk discount to AUD-sensitive ASX names at today's open. | | The combination of a weaker AUD at 0.7131 and rising US 10-year yields at 4.49% tightens the rate and FX transmission channel most acutely for ASX tech, REITs, and rate-sensitive consumer stocks. |
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Stocks In Play
| ALD (Ampol) — WTI oil +1.56% to $96.20 supports refining margins; stock gained 3.43% to $34.96 in prior session, further upside possible if oil holds | | XRO (Xero) — fell 3.54% to $83.92 on Wednesday; rising US 10Y yield at 4.49% remains a structural headwind for high-multiple tech at open | | BHP (BHP) — copper -2.74% to $6.48 and Trump tariff threat create downside risk despite Wednesday's +2.43% gain to $64.91; China steel demand slack compounds pressure |
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Markets at a Glance
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Indices
| ASX 200 |
8,785.7 |
▲ +0.70% |
| S&P 500 |
7,553.7 |
▼ -0.74% |
| Dow Jones |
50,687.1 |
▼ -1.21% |
| Nasdaq |
26,854.0 |
▼ -0.89% |
FX
| AUD/USD |
0.7131 |
▼ -0.70% |
| AUD/GBP |
0.5307 |
▼ -0.38% |
| AUD/EUR |
0.6144 |
▼ -0.44% |
| AUD/JPY |
114.0530 |
▼ -0.66% |
Rates
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Commodities
| Gold |
$4,462.70 |
▼ -1.09% |
| WTI Oil |
$96.20 |
▲ +1.56% |
| Copper |
$6.48 |
▼ -2.74% |
Crypto
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ASX Market Movers · Previous Session
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▲ Top Gainers
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ALD
Ampol
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$34.96 |
▲ +3.43% |
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LYC
Lynas Rare Earths
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$19.49 |
▲ +2.80% |
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WHC
Whitehaven Coal
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$9.25 |
▲ +2.78% |
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BHP
BHP
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$64.91 |
▲ +2.43% |
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WOW
Woolworths
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$35.09 |
▲ +1.98% |
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ANZ
ANZ
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$34.66 |
▲ +1.94% |
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S32
South32
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$4.91 |
▲ +1.87% |
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RIO
Rio Tinto
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$194.47 |
▲ +1.62% |
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▼ Top Losers
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XRO
Xero
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$83.92 |
▼ -3.54% |
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JBH
JB Hi-Fi
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$68.89 |
▼ -3.04% |
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WTC
WiseTech
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$41.35 |
▼ -2.08% |
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SGP
Stockland
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$3.72 |
▼ -1.85% |
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FMG
Fortescue
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$21.92 |
▼ -1.84% |
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PLS
Pilbara Minerals
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$6.43 |
▼ -1.83% |
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COH
Cochlear
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$95.10 |
▼ -1.70% |
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TLS
Telstra
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$5.12 |
▼ -0.78% |
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What Moves Markets
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Trump threatens 12.5% tariff on Australia over forced-labour allegations — Why it matters: Broad ASX exposure including materials exporters, industrials, and AUD-sensitive consumer names; AUD already down 0.70% to 0.7131 — What to watch: Whether Albanese government response escalates or deescalates; any formal tariff announcement or exemption that changes the trade baseline
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Copper fell 2.74% to $6.48 amid weak China steel demand and thinning steel margins — Why it matters: BHP, South32, and Sandfire (SFR) are most directly exposed; iron ore weakness in May compounds the materials sector headwind — What to watch: China steel margin data and whether iron ore Singapore futures stabilise or extend May's 3% decline
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US 10-year yield rose to 4.49% as Wall Street sold off — Why it matters: Rate-sensitive ASX sectors — REITs (Stockland already -1.85% to $3.72), tech (Xero, WiseTech), and yield proxies — face continued valuation compression — What to watch: Whether the 4.50% level on the US 10Y is breached, which historically accelerates ASX growth stock de-rating
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ASX Focus
Overview
The dominant ASX theme today is the intersection of Trump's 12.5% tariff threat on Australia and a broad Wall Street selloff, which puts pressure on rate-sensitive tech names like Xero and WiseTech alongside materials stocks exposed to copper's 2.74% overnight decline, while energy names led by Ampol find selective support from oil at $96.20.
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Financial Review
Albanese pushes back on Trump's 12.5% tariff threat on Australia
Prime Minister Albanese has publicly rejected Trump's threatened 12.5% tariff on Australia, which is linked to alleged importation of goods made with forced labour. The tariff threat has already pressured the AUD/USD by 0.70% to 0.7131 and raises trade policy uncertainty for Australian export-oriented sectors.
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Financial Review
Budget supercharges 10% tax concession for first-home buyers
The federal budget has expanded a tax incentive mechanism for first-home buyers, potentially stimulating demand at the entry level of the residential property market. The move has implications for ASX-listed property developers and REITs, including Stockland, though the sector faces countervailing pressure from rising yields.
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Google News / Discovery Alert
China tells steelmakers to shun Fortescue's new iron ore product
Chinese steelmakers have reportedly been directed to avoid purchasing Fortescue's new iron ore product, adding a targeted demand headwind for FMG on top of broader iron ore price weakness. Fortescue already fell 1.84% to $21.92 on Wednesday and faces further selling pressure at Thursday's open given this specific China policy signal.
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Macro & Policy
Overview
Trump's threat to impose a 12.5% tariff on Australia and 60 other trading partners over alleged forced-labour-linked imports is the dominant macro development, directly weakening the AUD and lifting uncertainty for Australian export industries and trade-exposed businesses.
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Commodities
Overview
Copper fell 2.74% to $6.48 overnight, reflecting weak Chinese steel demand and thinning steel margins, directly pressuring ASX diversified miners including BHP and South32, while iron ore extended a softer trend after declining 3% across May.
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Discovery Alert / Google News
China tells steelmakers to shun Fortescue's new iron ore product
Chinese authorities have reportedly instructed domestic steelmakers to avoid purchasing a new iron ore product from Fortescue, adding a targeted demand risk to FMG's sales pipeline. With FMG already down 1.84% to $21.92 on Wednesday, the directive compounds both company-specific and sector-wide headwinds from weakening iron ore fundamentals.
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Global Markets
Overview
Wall Street snapped its recent winning run on Wednesday, with the S&P 500 falling 0.74% to 7,553.7 and the Dow losing 1.21% to 50,687.1, as Trump's sweeping tariff threats across 60 countries, rising US 10-year yields at 4.49%, and a selloff in tech heavyweights including Broadcom combined to cool risk appetite ahead of the ASX open.
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MarketWatch
Stocks take a breather as torrid rally cools — S&P 500 winning streak in jeopardy
The S&P 500 fell 0.74% to 7,553.7 on Wednesday, interrupting a strong recent rally as tariff uncertainty and yield pressure weighed on sentiment. For Australian investors, the pullback is a direct signal for ASX futures positioning, particularly in tech and rate-sensitive names that had been buoyed by Wall Street's momentum.
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MarketWatch
Broadcom's stock falls despite accelerating AI-chip growth
Broadcom sold off despite reporting accelerating AI chip revenue, highlighting a broader market dynamic where strong earnings are being insufficient to sustain elevated valuations amid rising yields. The read-through for ASX tech names — particularly Xero, WiseTech, and other high-multiple software stocks — is that yield headwinds are now dominating earnings momentum as a valuation driver.
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The Number
12.5%
The threatened US tariff rate on Australian goods, cited by Trump over alleged forced-labour links, which has already weakened the AUD/USD to 0.7131 and represents a material new risk premium for Australian export industries and trade-exposed ASX companies if formalised.
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