The Big Picture
The S&P/ASX All Ordinaries Index finished the week down 0.7% as investors weighed a generally constructive backdrop for global economic growth against renewed geopolitical uncertainty.
Markets initially welcomed the agreement between the US and Iran aimed at reopening the Strait of Hormuz. The prospect of easing energy supply concerns pushed oil prices lower and supported equity markets through the middle of the week.
That optimism was tested later in the week when Iran attacked a commercial ship transiting the Strait of Hormuz, prompting fresh US strikes over the weekend and further assertions by Iranian officials of control over shipping through the waterway. This caused oil prices to move higher, with investors reassessing the outlook for energy supply and regional stability.
Despite ongoing geopolitical tensions, recent economic data suggests the global economy remains generally resilient. In the US, first-quarter real gross domestic product (GDP) growth was revised higher to an annualised 2.1% from 1.6%, while manufacturing activity reached its strongest level since May 2022. Consumer spending and personal income also rose 0.7% in May, suggesting economic activity continues to hold up despite elevated inflation.
Looking ahead, investors will be focused on the Reserve Bank of Australia’s minutes from its June policy meeting, during which it kept the cash rate unchanged at 4.35%, alongside US employment and manufacturing data, and inflation readings in Europe and China. Markets are likely to remain particularly sensitive to developments in the Middle East and any disruption to global energy supply.
Stateside insights: What the US outlook means for investors
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WAM Global (ASX: WGB) Lead Portfolio Manager Catriona Burns is joined by WAM Leaders (ASX: WLE) and WAM Income Maximiser (ASX: WMX) Portfolio Manager John Ayoub to share insights from their recent US trips. Watch their insights here. |
In the media
Stock Watch
IPD Group (ASX: IPG), a leading electrical solutions provider, recently provided FY26 guidance for EBIT (earnings before interest and taxes) in the range of $46.3 million to $47.1 million. This implies 19% midpoint growth supported by a partial contribution from the acquisition of Platinum Cables and strong data centre demand, where revenue has grown 25%. The investment team expect IPD Group will continue to grow market share organically and that it should grow at double the rate of its underlying sector exposure. Bolt-on acquisitions will also likely further accelerate its growth. Following a recent site tour with IPD Group’s management team, we maintain a positive outlook towards the company particularly given its exposure to increased investments in data centres and infrastructure.
Bremick Fasteners, established in 1965, has built a strong reputation as a market-leading manufacturer of high-quality fasteners and industrial supplies. Under the ownership of private equity manager Crescent Capital, Bremick Fasteners has continued to take market share and increase earnings, supported by an established distribution network in Australia and New Zealand, an extensive product range and advanced engineering capabilities. The WAM Alternative Assets (ASX: WMA) investment team sees further upside for Bremick Fasteners through continued sales growth, product innovation and the potential for strategic acquisitions. The WAM Alternative Assets investment portfolio gains access to Bremick Fasteners via its investment in Crescent Capital Partners.
Watch the recording of the Future Generation webinar ‘What’s next for the Australian economy?’
Watch the recording of the Future Generation Q&A webinar ‘What’s next for the Australian economy?’. Following the release of the Australian Federal Budget, ongoing inflationary pressures and wider geopolitical uncertainty, hear expert insights from Dr Philip Lowe, ex-Governor of the Reserve Bank of Australia and Jennifer Westacott AC, the former Chief Executive of the Business Council of Australia.
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A. There is no minimum amount when investing in Wilson Asset Management’s LICs. However, depending on which trading platform you use, there may be a minimum amount of shares you are required to purchase. For instance, CommSec’s minimum initial purchase is $500, followed by smaller parcels of shares to increase existing shareholdings. For investment in Wilson Asset Management’s unlisted funds, you can find their minimum initial investment on our website, or within their respective Product Disclosure Statements.
Index returns performance table
