Morning Bell 10 June

Wall Street closed mostly higher on Monday as investor optimism remains elevated on hopes of trade talks progress between the U.S. and China. The S&P500 rose 0.09%, the Dow Jones fell just 1.1 points and the Nasdaq ended the day up 0.31%.

In Europe overnight, markets closed lower as investors awaited the outcome of talks between the U.S. and China in London. The STOXX 600 fell 0.08%, Germany’s DAX lost 0.54%, the French CAC dropped 0.17%, and, in the UK, the FTSE100 ended the day down 0.06%.

Across the Asia markets on Monday, it was a sea of green as investors welcomed some favourable economic data out of China and awaited key trade talks between the world’s largest economies. Consumer price inflation fell by 0.1% YoY in May which was lower than the 0.2% economists were expecting, while producer price index fell by 3.3%.

China’s CSI index rose 0.3%, South Korea’s Kospi index rose 1.55%, Japan’s Nikkei added 0.92% and Hong Kong’s Hang Seng ended the day up 1.63%.

The ASX was closed on Monday for the King’s Birthday public holiday.

Last week though, the ASX posted a near 1% gain for the 5-trading days to notch the first positive trading week for June and the fourth consecutive weekly gain as progress talks between Presidents Trump and Xi resumed and ended with an in-person meeting agreement.

Gold producer Ora Banda took a hit on Friday after downgrading its gold production guidance for FY25 to 5% below the low end of the initial guidance range, while also increasing the costs expected by 4% with the driver of the update being extended downtime required for the processing plant.

What to watch today:

• Ahead of Monday’s trading session in Australia the SPI futures are anticipating the ASX will open the day down 0.06%.
• The Aussie dollar has strengthened against the greenback to buy 65.18 US cents, 94.19 Japanese yen, 47.98 British pence and 1 New Zealand dollar and 8 cents.
• On the commodities front this morning oil is trading 1.24% higher at US$65.32/barrel, gold is up 0.42% at US$3325.58/ounce and iron ore is down 0.6% at US$95.62/tonne.

Trading Ideas:

• Bell Potter has increased the 12-month price target on Develop Global (ASX:DVP) from $4 to $5 and maintain a buy rating on the hybrid underground and owned-mine operator following the release of recent updates out of the company including Woodlawn’s plant commission and underground mine production ramp-up progressing ahead of Bell Potter’s expectations.
• And Trading Central has identified a bearish signal on REA Group (ASX:REA) following the formation of a pattern over a period of 26-days which is roughly the same amount of time the share price may fall from the close of $232.52 to the range of $219 to $223 according to standard principles of technical analysis.