ASX 200 Live Updates: Friday, 6th June

ASX Live Coverage Update – June 6, 2025

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Redox Addresses ASX Price Query

9:35 AM: Chemical manufacturer Redox has responded to an ASX inquiry concerning its recent stock decline of 23% over four trading sessions. The company noted it cannot confirm specific factors affecting trading but indicated potential issues such as:

• A downgrade in earnings forecasts by Morgan Stanley on June 3, linked to well-known external macroeconomic challenges.
• Reduced liquidity in its shares.
• General macroeconomic uncertainty highlighted by Australia’s disappointing GDP growth reported on June 4.

Source: ASX Announcement | Redox (RDX)

World Gold Council May 2025 Report Insights

9:25 AM: The World Gold Council’s latest report details a noteworthy shift in gold-backed ETFs:

• May Summary: There was a withdrawal of USD 1.8 billion from global gold ETFs, ending a five-month inflow streak and resulting in a 1% decline in total assets under management, now standing at USD 374 billion.
• Market Influences: Positive drivers included tariff risks and inflation expectations overshadowed by ETF outflows primarily from North America.
• Tariff Effects: U.S. import prices have remained stable, signalling potential margin pressures on domestic companies, while higher consumer prices could emerge.
• Stagflation Concerns: Current tariff situations are perceived as inflationary, leading to fears of stagflation which may favour gold’s performance in uncertain economic climates.
• Future Outlook: Expectations of stagflation could maintain gold’s appeal, especially as central banks navigate upcoming decisions.

Source: World Gold Council

Bell Potter Upgrades Cuscal’s Target Price

9:20 AM: Cuscal has reached new heights, ending yesterday’s trading at $2.97—gaining 19% since its $2.50 IPO price last November. Bell Potter has revised its target price upward from $3.40 to $3.50 while maintaining a Buy rating, based on:

• Continued transaction volume growth expected to increase by 8% in FY25.
• While FY25 growth might be slightly tempered by lower acquiring volumes in New Zealand, there’s a positive outlook for 10% growth in FY26.
• A promising 22% increase in net interest margins, alongside stable client deposits and net fee income growth.
• Recent transactions highlighted the robust momentum in the sector, supporting Cuscal’s growth prospects and estimating potential share price increases to $5.00.

Ora Banda Mining Lowers Production Guidance

9:15 AM: Ora Banda Mining has updated its guidance for the Davyhurst project in Western Australia, announcing:

• A reduction in FY25 total production to 95,000 ounces, down from the previous range of 100,000-105,000 ounces.
• An increase in FY25 All-In Sustaining Costs (AISC) to A$2,600, up from prior guidance of A$2,350-$2,500 per ounce.

Source: ASX Announcement | Ora Banda Mining (OBM)

Significant Job Cuts in the US Market

9:10 AM: Major layoffs are being reported across various sectors, highlighting shifts driven by economic pressures and AI advancements:

• Procter & Gamble plans to eliminate 7,000 jobs, amounting to 15% of its non-manufacturing staff, amid productivity enhancement efforts.
• Microsoft will further cut jobs after a 6,000 job reduction last month, focusing on AI operations.
• Job cuts have also been noted in tech and media companies, such as Disney and Warner Bros., indicating a broader industry realignment.
• Analysts warn that AI might disrupt a significant portion of entry-level white-collar jobs over the next few years, potentially increasing unemployment rates.
• Reports show rising graduate unemployment, particularly in AI-related fields like finance and tech.

Market Summary and Key Drivers

8:55 AM: US stocks ended lower, yet are barely poised for weekly gains. Key highlights impacting the market include:

• Trump-Musk Feud: Controversy arose as Elon Musk publicly critiqued Trump’s tax policies, resulting in a sharp drop in Tesla shares by 14%.
• Economic Indicators: A notable reduction in the US trade deficit, along with an unexpected rise in jobless claims, will influence trading sentiment.
• European Central Bank’s Rate Cut: The ECB has lowered rates in line with market predictions as it nears the end of its rate-cutting cycle.

Morning Market Preview

8:50 AM: S&P/ASX 200 futures indicate a sluggish market opening, down by 13 points (-0.15%). Yesterday’s trading concluded flat after a brief rally.

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