The markets are in a state of flux, with a mix of positive and negative trends across various sectors. The ASX 200 is expected to rise, while the S&P 500 and Nasdaq slip as tech selling resumes. Gold and oil prices are easing, and the US May CPI is due tonight, with expectations of a rise in headline inflation. The Iran-US tensions are a key focus, with the Strait of Hormuz traffic increasing and the US Energy Secretary noting that the supply premium is easing. The US and Iran have reached a hazy outline of a nuclear agreement, but the details are still unclear. The market is also reacting to the SpaceX public offering, with institutional demand surging. The US trade deficit has narrowed, and the Section 122 global tariff remains in legal limbo. The economy is showing mixed signals, with China's May exports and imports rising, and Australia's Consumer Sentiment Index falling. The market is also reacting to the KMD Brands interest from international private equity firms and the Wesfarmers lithium project update. The defensive rotation is a key theme, with strong gains for defensive/value-oriented sectors. The commodity volatility is a concern, with most commodities giving back early gains or continuing to trend lower. The broker moves are also notable, with Qualitas initiating a Buy and REA downgrading to Neutral. The key events include stocks trading ex-dividend, earnings, and IPOs. The economic calendar is packed with China inflation, US inflation, and the Bank of Canada Interest Rate Decision.
