The S&P/ASX 200 is expected to follow Wall Street's lead and open lower this morning after US markets reacted to inflation concerns before the weekend.

Wall Street closed slightly lower as fears of potential interest rate hikes returned. Comments from US Federal Reserve Chairman Kevin Warsh highlighted the risk of rising inflation, which saw the S&P 500 edge down. The Nasdaq fell 0.38 per cent and the Dow Jones Industrial Average dropped 0.21 per cent. The renewed focus on inflation underscores how sensitive equity valuations remain to the interest rate outlook, with any sign that price pressures are re-accelerating typically weighing on rate-sensitive sectors such as technology and real estate.

US investors are now awaiting employment data and major corporate earnings to gain a better understanding of the strength of the economy. These upcoming releases are among the most closely watched inputs for expectations about the future path of US monetary policy.

On Friday, the S&P/ASX 200 closed up, gaining 54.10 points, or 0.60 per cent, to 9,092.30. Over the five trading days last week, the index gained 0.37 per cent and currently sits 2.20 per cent below its 52-week high. However, futures markets are pointing to a 0.4 per cent slide at the open, a common pattern in which Australian equities take their early cue from the overnight US session.

Meanwhile, the World Gold Council (WGC) has noted that record gold prices outpaced rising mining costs in the first quarter of 2026. Despite cost inflation, the quarter remained exceptionally profitable for the gold mining industry, the WGC reported. Gold has historically been viewed by investors as a store of value during periods of inflation concern, which is the same backdrop currently unsettling equity markets.

Company News

• Joyce Group (ASX: JYC) delivered a record result in FY26, generating $10.8 million of NPAT attributable to Joyce shareholders, up 31.6 per cent on normalised NPAT in the previous corresponding period.
• Austal (ASX: ASB) reported revenue surpassing the $2 billion mark for the financial year ended 30 June 2026, up 11 per cent year-on-year, driven by the continued ramp-up of shipbuilding in the USA and Australia and a strong order book. Austal is a key supplier of vessels to the US Navy and allied navies, and its US operations have been a central growth driver in recent years.
• The Agency Group Australia (ASX: AU1) posted record GCI in FY26, with continued revenue growth and improved underlying earnings. The result reflects expansion of the national agent network, increased sales volumes and values, stronger contributions across several East Coast markets, and continued growth in recurring property management revenue.
• Energy Fuels (ASX: EF2) has completed the acquisition of Australian Strategic Materials. The deal consolidates Energy Fuels' position across uranium and rare earths supply chains, materials central to energy transition and defence technologies.
• LAC Gold (ASX: LAC) continues to report success at its Rouyn gold project.

Currencies and Commodities

In forex, the Australian dollar is buying US$0.715.

In commodities, all priced in US dollars:

• Iron ore was up 0.17 per cent to $95.84 in Singapore today
• Brent crude was down 0.26 per cent to $88.29 per barrel
• Gold was selling at $4,454.08
• US natural gas futures were down 1.15 per cent to $2.8805 per gigajoule