Morning Report

Morning Report PDF (PDF 286KB)

Key themes:

• Markets were mixed as developments in the Middle East dominated sentiment, with President Trump rejecting Tehran's latest proposal, while the FOMC separately left policy unchanged and Chair Powell indicated this would be his final meeting as Chair.
• Equity markets were subdued, though sentiment found some support from strong AI and cloud-related growth reported by major US technology firms, while the ASX 200 recorded its seventh consecutive daily decline.
• US bond markets sold off sharply as hawkish dissent at the FOMC challenged statement language viewed as implying an easing bias, while Australian government bonds found support after a softer-than-expected core inflation outcome.
• The USD strengthened, with the Australian dollar recording its weakest daily performance against the greenback since March.
• Oil prices surged, with Brent climbing to its highest level since 2022.