ASX Flat as Miners Gain, IG Markets Cuts Crypto Fees, June 02

Australia’s sharemarket ended nearly flat on June 1 as geopolitical tensions offset gains in mining stocks. The S&P/ASX 200 fell 2.3 points to 8,729.4 (down 0.03%), while the All Ordinaries rose 4.8 points to 8,969.8 (up 0.05%). Separately, IG Markets dropped trading commissions on Bitcoin, Ethereum, and Solana to 0.07% for UK clients, intensifying competition in retail crypto trading.

Miners Advance Despite Iron Ore Decline

BHP, Rio Tinto, and Fortescue all gained on June 1 despite iron ore futures falling below USD 105 per tonne, down from USD 109 a week earlier. BHP rose 2.52% to AUD 90.01 over the day. Gold stocks also moved higher as the precious metal held near USD 4,515 (AUD 6,287) per ounce. Meyka rates BHP a B+ with a 12-month forecast of AUD 56.87, suggesting limited upside from current levels.

Geopolitical Tensions Keep Markets Cautious

US-Iran tensions dominated market sentiment. Reports of naval mines in the Strait of Hormuz and Israeli troops pushing into Lebanon weighed on investor confidence. Eight of 11 local sectors traded lower. Energy giants Woodside and Santos ended flat. Financials trimmed 0.3% as Commonwealth Bank and ANZ shares dragged, pressured by slower economic growth and cooling property markets.

IG Markets Slashes Crypto Fees to Compete

IG Markets cut commissions on Bitcoin, Ethereum, and Solana to 0.07% for UK and Irish retail clients, effective June 1. Clients now pay only the external exchange fee charged by the broker’s liquidity partner. Other tokens still carry a 1.49% fee. The move deepens a fee war reshaping retail investing after years of commission-free stock and ETF trading.

AUD Gains Despite Softer Inflation

The Australian dollar rose 0.79% to USD 0.7184 last week, boosted by improved risk sentiment from ceasefire hopes. Headline CPI for April rose 4.2% year-on-year, down from 4.6% prior and softer than forecasts. The RBA’s trimmed mean edged to 3.4% from 3.3%. The 10-year Australian bond yield sits at 4.89%, holding a 43 basis point premium over US bonds, down from 63 basis points in mid-May.

Final Thoughts

Australian equities remain cautious as geopolitical risks offset mining strength. With Meyka rating BHP a B+ and forecasting AUD 56.87 (down 37% from current price), downside risks dominate near term despite sector resilience.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.