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ASX Live Coverage – June 3 Highlights
Welcome to our live coverage of the ASX for Tuesday, June 3. We are pleased to introduce this new format for delivering timely updates. Please refresh the page manually for the latest information and feel free to share your feedback.
Oil Prices Surge
[9:00 am] Overnight, Brent and WTI crude oil prices surged nearly 4% following OPEC+’s announcement to increase output by 411,000 barrels per day. This production increase was lower than anticipated, alleviating fears that Saudi Arabia and Russia would advocate for a more significant rise in output to punish over-producing countries within the organisation and to reclaim market share.
Goldman Sachs highlighted that with robust global activity data and the seasonal uptick in summer oil demand, any significant dip in demand is unlikely, suggesting the production levels could rise further when OPEC meets again on July 6. In contrast, Morgan Stanley predicts an additional increase of 411,000 barrels per day in the coming months.
The energy sector performed well, with S&P 500 energy stocks rising by 1.15%. This upward trend in oil prices is likely to positively impact local companies such as Woodside, Beach Energy, and Karoon.
Key Insights from Livewire
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Jake Klein on Gold Prices: Jake Klein, Executive Chairman of Evolution Mining, expresses concerns regarding the Western world’s preparedness for upcoming economic and geopolitical challenges. He suggests that these factors are driving gold prices to record levels as investors seek safe havens. According to Klein, rising inflation, global uncertainties, and shifting investor sentiment are key drivers for increased interest in gold.
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Salt Investments: Ryder Capital has found a promising investment avenue in salt, primarily through its association with ASX-listed BCI Minerals. The diverse applications of salt, ranging from de-icing to food processing, are expected to drive steady growth in this sector, with projections indicating a rise to over USD 32 billion by 2033.
- Identifying Growth Stocks: Fund managers Hollie Briggs and James Barker discuss techniques for discovering and maintaining growth stocks in a volatile market. They highlight Pro Medicus and WiseTech Global as exemplary Australian companies with strong fundamentals and the potential for long-term success due to their innovative capabilities and sound financial practices.
Market Movements and Other Drivers
[8:50 am] Major US indices experienced slight gains, closing near their highest levels despite encountering various adverse factors, including:
- Trade tensions resurfaced as former President Trump proposed to double tariffs on steel and aluminium to 50%.
- A blame game ensued between the US and China regarding breaches of the recent tariff agreement.
- The Trump administration has requested trading partners to present their best offers by Thursday.
- The US May ISM Manufacturing PMI recorded a disappointing 48.5, falling short of the 49.5 consensus and down from April’s 48.7. This figure represents the weakest performance since November 2024, with concerning signals in pricing and import metrics.
Morning Market Outlook
[8:45 am] Futures for the S&P/ASX 200 indicate a robust start, up 69 points (0.81%), moving closer to all-time highs. New readers are encouraged to review today’s Morning Wrap for a quick overview of the day’s developments.
This summary provides an overview of key developments affecting the market and investment landscape, ensuring that stakeholders remain informed and well-positioned to make timely decisions in the ever-evolving financial environment. Stay tuned for more updates as the day progresses.
