Table of Contents
Live ASX Coverage Summary for Thursday, June 18
Pre-market activity and updates will be provided until approximately 2:00 PM AEST.
Emeco Reports Softer FY26 and Stable FY27 Guidance
[9:29 AM] Emeco Holdings has indicated that its earnings for the current financial year have been impacted by adverse weather, supply chain issues, and escalating fuel costs, although it has achieved fleet redeployment for FY27 and maintains a solid balance sheet for potential mergers and acquisitions (M&A).
- FY26 Earnings Guidance: Projected operating EBITDA is between $290-295 million, with operating EBIT expected at $145-150 million.
- Operating Free Cash Flow Estimates: Expected to be $100-110 million, with net leverage dropping to approximately 0.4x.
- Challenges: Wet weather and supply chain disruptions have decreased equipment utilisation and postponed fleet redeployment.
- FY27 Outlook: Earnings projected to stabilise compared to FY26, with strong free cash flow anticipated. Utilisation rates are targeted at around 90% for surface operations and 80% for underground.
- Future Plans: Emeco’s robust financial position allows for strategic M&A activity in a fragmented rental equipment market, with detailed audited results due by August 20, 2026.
ASX Faces Tough Start Amid Rising Yields and Dollar Strength
[9:15 AM] The ASX is poised for a challenging opening as the US two-year yield surged 13 basis points overnight to 4.18%, the highest rate since February 2025.
- The US dollar index increased by 0.85% to reach 100.38, prompting a decline in commodity prices. Gold, copper, platinum, and silver all recorded notable drops.
Strong Retail Sales Report in the US for May
[8:56 AM] Recent data indicates US retail sales outperformed expectations across all major metrics, alleviating concerns about a possible slowdown in consumer spending.
- Monthly Changes:
- Overall retail sales rose by 0.9% (expected 0.55%).
- Excluding auto sales, the increase was 0.8% (expected 0.5%).
- The control group affecting GDP rose by 0.7% (expected 0.4%).
Federal Reserve Maintains Interest Rates with Policy Review Announced
[8:53 AM] In its first meeting under new Chairman Kevin Warsh, the Federal Reserve opted to keep its interest rate target between 3.5% and 3.75%, while indicating changes to its communication strategy.
- Forward Guidance Eliminated: The Fed no longer provides forward guidance due to its perceived unsuitability.
- Economic Forecasts: Projected real GDP growth is set at 2.2% for this year, with inflation and unemployment targets discussed.
International Energy Agency Lowers Oil Demand Forecast
[8:46 AM] The IEA has revised its oil demand forecast for 2026 downwards, anticipating a significant surplus in the market by 2027 following normalisation of supply chains related to international agreements.
- Demand Outlook: Expected demand decrease of 1.1 million barrels per day in 2026, with a rebound anticipated of 2 million barrels daily in 2027.
South Korea’s Central Bank Issues Inflation Warning
[8:46 AM] The Bank of Korea has flagged the risk of inflation driven by large bonus payouts in the semiconductor sector impacting wage demands across other industries.
- Inflation Trends: South Korea’s CPI in May reached 3.1%, the highest in over two years.
Sweden’s Riksbank Maintains Rates, Cites Inflation Risks
[8:44 AM] The Riksbank kept interest rates steady at 1.75% while signalling potential hikes in the future due to inflation concerns exacerbated by geopolitical events.
European Central Bank Signals Further Rate Increases
[8:42 AM] ECB officials have indicated that despite the potential impacts of the US-Iran agreement, further interest rate hikes are anticipated.
- Market Expectations: Traders are increasingly pricing in a 25 basis point increase that would raise the deposit rate to 2.5%.
US-Iran Intermediate Agreement to Ease Oil Export Restrictions
[8:40 AM] The draft agreement between the US and Iran is expected to provide immediate financial relief to Tehran and facilitate a return to pre-war oil export levels.
US Stock Market Experiences Decline Post-Fed Meeting
[8:38 AM] Wall Street experienced a notable decline following hawkish comments from Fed officials indicating future interest rate hikes.
- Market Performance: Major indices fell significantly, with the S&P 500 down by 1.21% and the Nasdaq decreasing by 1.34%.
ASX 200 Futures Down as Trading Day Initiates
[8:26 AM] ASX 200 futures have recorded a decline of 61 points, reflecting the pressures seen across global markets following the US Fed’s meetings.
This summary highlights key economic indicators, forecasts, and market sentiments impacting Australia’s financial landscape today. If you have any suggestions to enhance our coverage, please share your thoughts!
