Table of Contents
ASX Live Coverage Summary – June 1
Welcome to our live coverage of the ASX for Monday, June 1. We will provide frequent updates throughout the day and conclude by 2:00 pm AEST. Your feedback is appreciated—tell us how we can improve.
Aluminium Backwardation at Record Low
[9:27 am] Aluminium spot premiums have reached levels not seen since 2007 amid a tightening market driven by Gulf supply issues.
- Spot aluminium is trading at a $97/t premium over three-month LME futures.
- Current LME, CME, and Shanghai Futures Exchange inventories are enough for less than five days of global demand.
- Since the conflict escalated, three-month LME aluminium prices have jumped over 16%, closing near US$3,666.50/t, after reaching a four-year high.
- Analysts from JPMorgan and Citigroup are forecasting prices could rise to US$4,000.
Syrah and Tesla Agreement Reached
[9:21 am] Syrah Resources has successfully resolved its dispute with Tesla, who has retracted its plans to terminate an offtake agreement.
- Tesla acknowledges Syrah’s progress in producing the natural graphite active anode material (AAM) needed.
- However, final qualifications for this material remain pending, and Tesla maintains the right to withdraw if they are not met.
Lendlease Offloads Milan Development with Major Loss
[9:19 am] Lendlease has finalised the sale of its Milan development rights, incurring a post-tax loss of approximately $175 million.
- The deal, valued at around $250 million, involves the sale of both cash units and project debt.
- This transaction allows Lendlease to address capital obligations, with plans for further disposal before June 30, 2026.
ParagonCare Anticipates Recovery from Infinity Group
[9:18 am] ParagonCare has reported potential recovery estimates related to its Infinity Group exposure, with administrators signalling preliminary distributions.
- Expected recoveries range from $11.7 million to $15.8 million, representing 24% to 32.5% of outstanding exposure.
- The company is forecasting revenues of approximately $3.7 billion and EBITDA of $95-100 million for FY26.
Pro Medicus Renews Contract with Allegheny Health Network
[9:11 am] Pro Medicus has secured a five-year, $28 million renewal deal with Allegheny Health Network.
- This marks the third renewal within a decade-long partnership and includes enhancements to their service offerings.
Regulatory Action Against Hub24
[9:09 am] APRA has imposed new licensing requirements on Hub24’s trustee, HTFS, following management failures in conflict of interest and due diligence.
- An independent expert review will be required, and high-risk investment options are temporarily banned.
- Hub24 has approximately 165,000 member accounts, and proposed ownership changes will not affect APRA’s conditions.
BHP Faces Strike Threat at Port Hedland
[9:07 am] The Electrical Trades Union (ETU) indicates a potential strike at BHP’s Port Hedland operations as negotiations continue to stall.
- Workers will vote on strike actions, which could significantly disrupt operations at the major iron ore export hub.
- The union seeks improved compensation amid concerns regarding BHP’s substantial profits.
WEB Travel Group’s MD Reduces Shareholding
[9:03 am] MD John Guscic has divested 2.7 million shares, reducing his stake in the company significantly to settle debts owed to UBS AG.
Cettire Expands into China
[9:02 am] Cettire is launching a flagship store on Alibaba’s TMall Global, enhancing its presence in China’s luxury e-commerce market.
- This initiative complements existing operations with JD.com and marks a step towards broader market access.
Market Insights: Bullish and Bearish Trends
[8:57 am] Bullish indicators include rising expectations for a US-Iran deal, strong AI infrastructure investment, and resilient consumer performance. Conversely, bearish sentiment stems from doubts surrounding the US-Iran negotiations, scrutiny on tech market momentum, and emerging cracks in consumer resilience.
Bullish Points:
- Optimistic outlook for US-Iran agreements and AI-related corporate performance.
Bearish Points:
- Persistent geopolitical tensions and potential economic slowdowns.
Central Bank Insight: RBNZ and ECB
[8:53 am] RBNZ officials are considering all options, including raising rates, in response to inflation pressures. Meanwhile, the ECB is preparing for a possible rate hike due to renewed inflation concerns across major Eurozone economies.
- The RBNZ left rates at 2.25% but may adjust depending on future economic conditions.
- The ECB could announce a move in June amidst escalating inflation in key member states.
Notable Market Movements:
- The S&P 500 continues its upward trajectory, reaching the longest winning streak since 2023, driven by robust performance in tech, particularly linked to AI demand.
- Memory chip stocks record highs, leading to historic sector gains amid ongoing debates about an AI bubble.
Stay tuned for more updates as the market progresses throughout the day.
