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June 11, 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 CPI 4.2%, oil surge, rates jump
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ASX Read
ASX faces pressure; defensives outperform, resources and tech drag
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Main Driver
US inflation at 4.2% spikes yields, crushes equities
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Wall Street's sharp overnight selloff — S&P 500 -1.62% to 7,267, Nasdaq -1.98% to 25,169.5, Dow -1.87% to 49,918.8 — poses a direct headwind to Thursday's ASX open, despite the local index closing Wednesday +0.57% at 8,653.3 before the US session unfolded. The catalyst is unambiguous: US CPI accelerated to 4.2% in May, lifted by Middle East conflict-driven oil prices, with WTI crude surging 3.50% to $91.71. The US 10-year yield rose 3 basis points to 4.54%, reinforcing rate-hike expectations. Gold fell 2.79% to $4,090.80 as traders repriced the Fed path higher. The overnight data reshapes the local picture significantly. Rate-sensitive sectors — REITs, utilities, and technology — face renewed selling pressure, while energy names may find support from WTI's surge. Resources are caught between higher oil and weaker copper (-1.85% to $6.20) alongside ongoing iron ore headwinds from China. Wednesday's defensive rotation into Coles (+4.95%), Wesfarmers (+4.25%), and CSL (+3.50%) may continue, but the broader index is unlikely to escape the gravity of a near-2% US decline.
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Market Tape
| S&P 500 -1.62% to 7,267.0; Nasdaq -1.98% to 25,169.5 — broad risk-off read for ASX growth and tech names at open | | ASX 200 closed +0.57% at 8,653.3 Wednesday — prior session defensives-led rally faces reversal pressure from US selloff | | WTI crude +3.50% to $91.71; US 10Y yield +3bps to 4.54% — energy stocks supported, rate-sensitive sectors under pressure | | Gold -2.79% to $4,090.80; AUD/USD -0.29% to 0.7002 — precious metals and AUD weakness confirms risk-off tone; NEM, miners exposed |
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The Read
| A near-2% Wall Street decline driven by a 4.2% US CPI print creates a difficult open for the ASX, with rate-sensitive and growth stocks most exposed and energy the lone sectoral bright spot. | | The transmission channel is clear: higher US inflation lifts the 10-year yield to 4.54%, compresses equity multiples globally, and weighs on gold and copper — the two commodities most directly linked to ASX materials earnings. |
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Stocks In Play
| WTI-linked energy stocks (e.g. Woodside, Santos) — WTI crude surged 3.50% to $91.71 on Middle East supply fears; direct earnings tailwind at open | | NEM (Newmont) — gold fell 2.79% to $4,090.80 as rate-hike bets surged; NEM already down 3.09% Wednesday, further downside risk | | IGO (IGO) — copper fell 1.85% to $6.20 and broader risk-off tone compounds Wednesday's -6.01% fall; watch for continued selling in lithium-copper names |
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Markets at a Glance
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Indices
| ASX 200 |
8,653.3 |
▲ +0.57% |
| S&P 500 |
7,267.0 |
▼ -1.62% |
| Dow Jones |
49,918.8 |
▼ -1.87% |
| Nasdaq |
25,169.5 |
▼ -1.98% |
FX
| AUD/USD |
0.7002 |
▼ -0.29% |
| AUD/GBP |
0.5229 |
▼ -0.31% |
| AUD/EUR |
0.6066 |
▼ -0.28% |
| AUD/JPY |
112.3350 |
▼ -0.22% |
Rates
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Commodities
| Gold |
$4,090.80 |
▼ -2.79% |
| WTI Oil |
$91.71 |
▲ +3.50% |
| Copper |
$6.20 |
▼ -1.85% |
Crypto
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ASX Market Movers · Previous Session
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▲ Top Gainers
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COL
Coles
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$23.73 |
▲ +4.95% |
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WES
Wesfarmers
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$83.39 |
▲ +4.25% |
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JBH
JB Hi-Fi
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$76.02 |
▲ +3.50% |
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CSL
CSL
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$102.95 |
▲ +3.50% |
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WOW
Woolworths
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$37.63 |
▲ +3.15% |
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SGP
Stockland
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$3.97 |
▲ +2.85% |
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AMC
Amcor
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$55.35 |
▲ +2.79% |
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TCL
Transurban
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$15.54 |
▲ +2.71% |
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▼ Top Losers
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IGO
IGO
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$8.44 |
▼ -6.01% |
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WHC
Whitehaven Coal
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$8.78 |
▼ -4.36% |
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NEM
Newmont
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$137.30 |
▼ -3.09% |
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MIN
Mineral Resources
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$64.18 |
▼ -2.52% |
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LYC
Lynas Rare Earths
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$16.87 |
▼ -2.37% |
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TNE
Technology One
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$31.82 |
▼ -2.27% |
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REA
REA Group
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$149.43 |
▼ -2.06% |
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XRO
Xero
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$76.82 |
▼ -2.04% |
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What Moves Markets
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US CPI rises to 4.2% in May, above prior levels, driven by oil price surge linked to US-Iran tensions — Why it matters: reprices Fed rate path higher, compresses valuations across ASX rate-sensitive sectors including REITs (SGP, TCL), technology (XRO, TNE), and banks — What to watch: whether US 10-year yield holds above 4.54% or pushes further; any Fed commentary responding to the print
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WTI crude surges 3.50% to $91.71 amid Middle East conflict and Strait of Hormuz concerns — Why it matters: directly benefits ASX-listed energy producers; also sustains inflation pressure that drove Wednesday's defensive rotation — What to watch: whether Brent follows WTI higher and any escalation in US-Iran engagement that further disrupts supply
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Iron ore faces dual headwinds — China imports declined significantly in May per SMM data, and Simandou supply coming online — Why it matters: BHP, RIO, FMG and MIN all carry direct earnings exposure to iron ore pricing; MIN fell 2.52% Wednesday — What to watch: spot iron ore price direction and any Chinese steel demand or stimulus signals out of Beijing this week
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ASX Focus
Overview
Wednesday's defensive rotation into consumer staples and healthcare — Coles +4.95%, Wesfarmers +4.25%, CSL +3.50% — now faces a test as Wall Street's 4.2% US CPI-driven selloff and a 3bp rise in the US 10-year yield to 4.54% land squarely on rate-sensitive and growth sectors Thursday, while resources remain caught between rising oil and weakening copper and iron ore.
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ASX Market Data
Defensive rotation drives ASX gainers as rate fears resurface
Coles (+4.95% to $23.73), Wesfarmers (+4.25% to $83.39), and Woolworths (+3.15% to $37.63) led Wednesday's ASX session as investors rotated into defensive consumer staples ahead of the US CPI release. CSL (+3.50% to $102.95) added healthcare support to the defensive bid, suggesting positioning for a higher-rate environment was already underway domestically.
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ASX Market Data
IGO slides 6.01% as copper falls and risk-off sentiment accelerates
IGO fell 6.01% to $8.44 on Wednesday, the ASX's largest single-session decline, consistent with copper dropping 1.85% to $6.20 overnight and broader risk-off positioning ahead of US inflation data. Mineral Resources (-2.52% to $64.18) and Lynas Rare Earths (-2.37% to $16.87) also declined, reflecting broad pressure across the battery and critical minerals complex.
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AFR / Google News
Australian miners wary as China iron ore demand weakens and Simandou supply looms
Australian iron ore miners face a structurally challenging outlook as China's iron ore imports declined significantly in May and the Simandou project in Guinea moves closer to production, adding long-run supply pressure. Fortescue remains stuck below A$20 as the market weighs both near-term Chinese demand softness and longer-dated competition from lower-cost African supply.
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Macro & Policy
Overview
US CPI accelerated to 4.2% in May — the dominant macro event in the past 24 hours — driven by Middle East conflict-fuelled oil prices, prompting markets to lift Fed rate-hike expectations and pushing the US 10-year yield up 3 basis points to 4.54%.
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The Guardian
Trump says 'I love the inflation' as US CPI hits 4.2% amid Iran war pressure
US consumer price inflation rose to 4.2% in May, fuelled by energy prices linked to US-Iran military tensions and the associated spike in oil markets. President Trump's dismissal of the inflation reading as acceptable complicates the Fed's response calculus and extends the rate-higher-for-longer narrative that is repricing global equities.
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The Guardian
US inflation hits 4.2% in May as Middle East conflict drives up prices — as it happened
Asian stocks fell in response to the US-Iran exchange of fire and the resulting oil price surge, with WTI crude rising 3.50% to $91.71 and Brent also higher, directly feeding the May CPI print. The Strait of Hormuz remains a live supply risk, and any further escalation would add to inflationary pressure and sustain the current risk-off positioning across global markets.
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Commodities
Overview
WTI crude oil surged 3.50% to $91.71, the most significant commodity move in the session, driven by Middle East conflict threatening Strait of Hormuz supply — a direct positive for ASX energy producers but a sustained inflation input that weighed on gold (-2.79% to $4,090.80) and copper (-1.85% to $6.20).
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CNBC / Google News
Gold and silver face pressure as traders lift Fed rate hike bets
Gold fell 2.79% to $4,090.80 and silver also declined as the 4.2% US CPI print prompted traders to increase Fed rate-hike bets, lifting the US 10-year yield to 4.54% and reducing the appeal of non-yielding precious metals. For ASX investors, Newmont (NEM) — already down 3.09% Wednesday — faces continued pressure at Thursday's open if gold holds at current levels.
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AFR
Australian miners wary of China's big squeeze on iron ore
China's iron ore imports fell sharply in May and are expected to recover only modestly in June, with weaker steel demand from the property and construction sectors cited as the primary driver. The combination of softer Chinese demand and the approaching production ramp-up at Simandou is structurally negative for the earnings outlook of BHP, RIO, FMG, and MIN.
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Global Markets
Overview
US equities suffered their sharpest session decline in recent weeks after May CPI printed at 4.2% — above expectations and driven by Middle East-conflict oil prices — with the S&P 500 falling 1.62% to 7,267, the Nasdaq dropping 1.98%, and the US 10-year yield rising to 4.54%, setting a broadly risk-off tone for Asian and Australian markets Thursday.
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MarketWatch
Oracle's stock slides after earnings as steep price of AI spooks investors
Oracle's post-earnings stock decline, driven by investor concern over escalating AI infrastructure costs, reinforces the negative overnight tone for global technology stocks. For ASX investors, this adds a secondary headwind to already rate-pressured local tech names including Xero (-2.04% Wednesday) and Technology One (-2.27%), which are sensitive to both US tech sentiment and domestic yield moves.
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The Guardian
US inflation hits 4.2% in May — Wall Street selloff as rate hike bets surge
The S&P 500 fell 1.62% to 7,267, the Dow lost 1.87% to 49,918.8, and the Nasdaq dropped 1.98% to 25,169.5 after US CPI came in at 4.2% in May, the highest reading in recent months and above market expectations. The catalyst — oil prices surging on US-Iran tensions — complicates the Fed's position and extends the duration of restrictive monetary policy, a significant negative for equity valuations globally.
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The Number
4.2%
US CPI for May, the highest recent reading, driven by Middle East conflict-fuelled oil prices — it has repriced Fed rate expectations higher, lifted the US 10-year yield to 4.54%, sent Wall Street down nearly 2%, and sets a risk-off tone directly relevant to every rate-sensitive and growth stock on the ASX at Thursday's open.
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