The big picture
Australian equities finished the week on a stronger footing, with the S&P/ASX 200 rebounding as optimism around a potential resolution to the US-Iran conflict improved sentiment. The index rallied sharply into Friday, rising 1.6% on the day, as gains across financials and resources drove the market higher, though underlying conditions remain mixed.
Headline Consumer Price Index (CPI) inflation eased to 4.2% for the 12 months to April (from 4.6% in the previous month), while core inflation increased slightly to 3.4% (from 3.3% the month prior). Overall, the data tempered expectations for near-term rate hikes.
Globally, equity markets continued to edge higher. In the US, both the S&P 500 and Nasdaq pushed to fresh highs over the week, supported by ongoing strength in technology stocks, particularly software and artificial intelligence (AI)-linked names following strong earnings upgrades.
Ongoing negotiations between the US and Iran continue to influence oil prices and broader market sentiment. Markets are increasingly positioning in anticipation of a resolution, with oil prices falling 11% over the week and risk sentiment improving and oil prices are now 22% below the late April highs.
Looking ahead Australian GDP data and labour market indicators will be closely watched as the impact of earlier rate hikes continues to flow through the economy.
Sign the petition against the Government’s changes to capital gains tax
More than 10,000 individuals have signed our petition, standing against the illogical changes to capital gains tax that risk affecting everyday Australians, including investors, young people, retirees, small business owners and families working hard to build their financial future.
Thank you to everyone who has already signed and shared our petition thus far. Your support is helping us reach more people and build real momentum.
Every signature counts. Every share helps.
Sign the petition here.
This is a tax on aspiration, investment and productivity. When risk-taking is taxed more heavily; fewer Australians invest, fewer businesses are built and economic growth slows.
The Government plans to abolish the 50% CGT discount, replacing it with cost base indexation to CPI, a 30% minimum tax on capital gains and applying partial time-apportioned grandfathering to existing gains. These changes will have significant unintended consequences.
Sign the petition here.
Macro in a minute: Themes driving investing in small-to-mid caps
WAM Capital (ASX: WAM), WAM Microcap (ASX: WMI), WAM Research (ASX: WAX) and WAM Active (ASX: WAA) Investment Analyst Sophia Mulligan shares insights on key themes shaping investment opportunities, including geopolitical tensions, rising fuel and energy costs, electric vehicles, AI and data centres. Sophia discusses how the Iran conflict may affect inflation, interest rates and consumer sectors, while highlighting potential opportunities in EV-related companies such as Eagers Automotive (ASX: APE) and COG Financial Services (ASX: COG), AI beneficiaries like Data#3 (ASX: DTL) and IPD Group (ASX: IPG) and beneficiary from the recent Federal Budget Generation Development Group (ASX: GDG). Watch her insights here.
In the media:
Stock watch
Stockland (ASX: SGP) is a leading Australian property group with exposure to residential communities, land lease, retail and logistics assets, with earnings closely tied to housing activity. Recent macro data, including April CPI figures and softening household demand, reinforces our view that interest rates are approaching their peak, which we believe should support a recovery in housing sentiment and listed property valuations over time. We recently heard from the Stockland management team at the Macquarie Australia Conference, where they reiterated confidence in FY2026 for both Masterplanned Communities and Land Lease settlements, supported by strong demand in key markets, despite ongoing affordability pressures. Against this backdrop, we see Stockland as well positioned to benefit from a stabilisation in interest rates and a recovery in housing activity, supported by its diversified earnings base and increasing exposure to structural growth areas such as affordable housing and data centres.
Portfolios held in: WAM Leaders (ASX: WLE), WAM Income Maximiser (ASX: WMX) and Wilson Asset Management Leaders Fund
Marvell Technology (NASDAQ: MRVL) is a leading semiconductor company providing custom silicon, networking and optical solutions to data centre, cloud and communications customers. Marvell delivered a strong first quarter result, with revenue and adjusted earnings per share (EPS) increasing 28% and 29% year-on-year, respectively. Driven by significant demand for its AI-related product solutions, the company raised its second quarter and full year guidance ahead of market expectations. The continued strong demand for these products was highlighted on the WAM Global (ASX: WGB) investment team’s recent trip to Taiwan and Shanghai, supporting the investment thesis that Marvell is positioned to benefit significantly from these supply constrained areas.
Portfolios held in: WAM Global (ASX: WGB)
You asked, we answered
Q. How do I make a submission against the proposed changes to capital gains tax?
A.
Who: Submissions should be made directly to the Senate.
How: Upload your submission via the official consultation portal here.
The relevant inquiry to select when making your submission is the:
- Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026
For more information on how to make a submission, or for guidance on how to write a submission please see the instructions on the Australian Parliament House website here.
When: The deadline for all submissions is Tuesday, 9 June 2026.
Register for the Future Generation Chairs Q&A Webinar
We invite you to register for the upcoming Future Generation Chairs Q&A Webinar, with Dr Philip Lowe, Chair of Future Generation Australia and Jennifer Westacott AC, Chair of Future Generation Global at 2:30pm (Sydney time), Thursday 25 June.
Dr Philip Lowe, ex-Governor of the Reserve Bank of Australia, and Jennifer Westacott AC, former Chief Executive of the Business Council of Australia hold a wealth of experience across financial markets. With the release of the Australian Federal Budget, inflationary pressures and geopolitical uncertainty, this is an exclusive opportunity to hear directly from some of the leading names in the industry. Please submit your questions and register here.
Index returns performance table
