24 June Markets at a glance
Around the grounds
- ASX lower amid weak commodity prices
- Gold retreats on a stronger USD
- AU CPI data on tap
- Star Entertainment shares slide
- Metcash FY profit falls, shares slump
The S&P/ASX200 has started the trading week in the red, as weak commodity prices puts pressure on mining and energy stocks. Gold is feeling the pressure from a stronger greenback, with the broader sub-index snapping five consecutive sessions of gains, though remains up over 3% this year as of last close.
Oil prices have eased after rising around 3% last week on signs of stronger oil products demand in the U.S. and as OPEC+ cuts kept supply in check.
Elsewhere, Chevron Australia says it has resumed full LNG and domestic gas production rates at its Wheatstone gas facility. Chevron had suspended production at the facility on June 10 to compete repairs to the platform’s fuel gas system.
In the news
Australian listed shares of Metcash (MTS) have taken a hit as the supermarket retailer reports a drop in full year net profit to AU$257.2 million, down from the AU$259 million it recorded last year. Sales for the first seven weeks of FY25 though are higher by over 2%.
Shareholders will get a fully franked interim dividend of 8.5 AU cents per share.
The stock is up over 8% this year, as of last close.
Shares of Star Entertainment (SGR) have taken a hit, after the casino operator said it expects full year profit to halve on a year ago. Star sees group revenue of between AU$.168 billion and AU$1.69 billion, down from AU$.187 billion in fiscal 2023.
The company has been under pressure recently due to regulatory inquiries to keep its gaming license at its Sydney casino, as well as an ongoing remediation programme.
In a separate statement to the market, Star has appointed Neale O’Connell as its acting CEO.
And Myer (MYR) has offered to acquire Premier Investments (PMV) apparel brand business through an all-scrip merger. The two companies have agreed to conduct reciprocal due diligence and discuss potential transaction terms however have flagged there is no certainty a non-binding proposal will result in a binding offer or transaction. Financial terms of the offer were not disclosed.
PMV shares have soared on the news, with MYR shares surging as much as 19% and on track for the best day in nearly two years.
And shares of Australian listed Cettire (CTT) have slumped to a 15-month low, with the stock on track for its worst trading day ever if current losses hold. It comes as the company flagged a softening demand environment with the company adding its financial performance in Q4 to-date has been impacted by market developments.
Going global
Around the region, Asian equity markets are muted, the Nikkei 225 is lower while US futures have edged up a tick.
Looking ahead, it’s all eyes on US PCE data, the Federal Reserve’s favoured gauge of inflation, due on Friday. Forecasts are for annual growth in the index to slow to 2.6% in May. A softer reading could bolster bets on an interest rate cut as early as September. Futures are currently pricing in a 65% chance that will happen, according to the CME FedWatch Tool.
Geopolitics are also on the watchlist, ahead of the first U.S. presidential debate on Thursday and the first round of voting in the French election on the weekend.
MSCI's broadest index of Asia-Pacific shares outside Japan are flat to negative, falling back from a two-year peak last week.
In currency markets, caution is high with investors on alert for a possible Japanese intervention as the dollar tested the 160 yen barrier.
The euro is also testing recent highs, despite softer PMI data.
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