Source: Kapitales Research

Headline

• ASX 200 futures signal a weaker open despite US markets reaching fresh record highs.
• S&P 500, Dow Jones and Nasdaq closed at new all-time highs, led by technology stocks.
• Dell Technologies surged nearly 33% after reporting record revenue and stronger AI server demand.
• Prospects of a potential US-Iran agreement improved after both sides exchanged proposals aimed at extending the ceasefire and reopening the Strait of Hormuz.
• Oil prices remained under pressure, declining 11.8% over the week and 17.1% during the month amid easing supply concerns.

Global Markets Overview

Global equity markets delivered a mixed performance overnight, with US benchmarks continuing their upward momentum and closing at fresh record highs. Investor sentiment was supported by strong corporate earnings, particularly from AI-linked technology companies, alongside easing Treasury yields and improving risk appetite. The Dow Jones outperformed major US indices, while the S&P 500 and Nasdaq Composite also advanced modestly.In North America, Canada's S&P/TSX Composite Index gained ground, supported by strength in financial and resource-related sectors. Across Europe, the United Kingdom edged lower as weakness in energy stocks weighed on market performance amid softer oil prices.Within the Asia-Pacific region, Japan's Nikkei 225 surged more than 2.5%, driven by gains across technology and export-oriented stocks. In contrast, Indian equities declined as investors remained cautious amid global macroeconomic uncertainties and concerns surrounding interest-rate expectations. New Zealand's NZX 50 also finished higher, reflecting steady investor confidence. Overall, market participants continue to monitor economic data, central bank signals, and geopolitical developments for further direction.Commodities & Crypto

Commodity markets delivered a mixed performance overnight as investors assessed geopolitical developments, movements in bond yields, and evolving global growth expectations. WTI crude oil recovered during the session but remained below US$90/bbl, with markets continuing to assess US-Iran negotiations and their implications for global energy supplies.Industrial metals remained resilient, with copper extending gains amid expectations of sustained demand from electrification projects, renewable energy investments, and AI-driven data centre expansion. Uranium continued its upward trajectory, benefiting from favourable long-term nuclear energy fundamentals and increasing global focus on energy security.Precious metals showed limited movement, supported by easing bond yields, while improving sentiment across equity markets tempered safe-haven buying interest. Meanwhile, Bitcoin edged lower as market participants adopted a cautious approach toward risk assets. Overall, commodity and cryptocurrency markets are expected to remain sensitive to geopolitical developments, central bank policy expectations, and global economic data releases.Bond Yiel

Global bond markets delivered a mixed performance as investors continued to assess the outlook for inflation, economic growth, and central bank policy. Australian and Japanese government bond yields moved lower, reflecting moderating inflation expectations and cautious sentiment surrounding future economic activity.In contrast, US Treasury yields edged higher, with both the 10-year and 30-year yields rising modestly as investors balanced strong equity market performance against uncertainty surrounding the Federal Reserve's policy trajectory. Despite the increase, yields remained below recent highs, suggesting markets continue to expect a gradual easing in inflationary pressures.Overall, fixed-income markets remain sensitive to upcoming economic data releases, central bank commentary, and developments in global trade and geopolitical conditions.Key Drivers

• US-Iran negotiations remained in focus as both sides continued discussions on a proposed ceasefire extension and the reopening of the Strait of Hormuz, although uncertainty remains over whether a final agreement will be reached.
• Dell Technologies surged after reporting stronger-than-expected results and raising its FY27 AI server revenue outlook, reinforcing confidence in AI infrastructure spending.
• Anthropic secured a US$65 billion funding round, becoming the world's most valuable private AI startup and highlighting continued investor appetite for artificial intelligence.
• Salesforce advanced after delivering earnings beat, raising guidance, and announcing enhanced shareholder returns through buybacks and dividends.
• China's manufacturing PMI eased to 50.0 in May, with weaker new orders indicating softer demand conditions.
• Inflation in France and Spain accelerated to its highest level since 2024, increasing concerns around the European Central Bank's interest-rate outlook.
• The US savings rate fell to its lowest level since 2022, reflecting ongoing affordability pressures on consumers.

ASX Company News

• Pro Medicus Limited (ASX: PME) strengthened its North American presence after securing a new 7-year AU$16 million contract with TidalHealth and a 5-year AU$28 million contract renewal with Allegheny Health Network, supporting long-term recurring revenue growth and continued adoption of its cloud-based Visage imaging platform.
• Ventia Services Group Limited (ASX: VNT) secured a five-year contract extension valued at approximately AU$133 million to continue managing the Australian Marine Complex–Common User Facility in Western Australia, strengthening its position in critical infrastructure and defence services.
• Tivan Limited (ASX: TVN) successfully produced premium acid-grade fluorspar at 98.6% CaF₂ from its Speewah Project pilot program, exceeding benchmark specifications and supporting ongoing feasibility and marketing activities.

Stocks Trading Ex-Dividend

• L1 Long Short Fund Limited (ASX: LSF) – Dividend of AU$0.037 per share.

Key Economic Drivers (What to Watch Today)

• Australia’s TD-MI Inflation Gauge and ANZ-Indeed Job Advertisements data will provide insights into domestic inflationary pressures and labour market conditions.
• China’s Manufacturing PMI will be closely monitored for indications of industrial activity and demand trends across the region.
• The US ISM Manufacturing PMI is expected to offer further clarity on the strength of the US manufacturing sector and broader economic momentum.
• Investors will remain focused on developments in US-Iran negotiations and any updates regarding shipping activity through the Strait of Hormuz.

Summary 

• ASX 200 futures point to a weaker start despite the S&P 500, Dow Jones, and Nasdaq Composite closing at fresh record highs overnight.
• Strong earnings and upgraded outlooks from Dell Technologies and Salesforce reinforced confidence in AI-driven technology spending.
• Oil prices remained sensitive to geopolitical developments and evolving expectations for global energy supplies.
• Copper and uranium continued to find support from long-term demand linked to electrification, energy security, and AI infrastructure expansion.
• China’s manufacturing PMI pointed to softer demand conditions, highlighting ongoing challenges across the industrial sector.
• US-Iran negotiations remained in focus, with markets closely monitoring developments surrounding a potential ceasefire extension.
• Investors are expected to remain focused on key economic data releases, Treasury yield movements, central bank commentary, and geopolitical developments in the near term.

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