Markets were mixed after cooler US payrolls reinforced expectations for a steady Fed, with non-AI-related sectors outperforming while memory-chip stocks, in particular, dragged on US indices. Europe gained strongly, Australia closed flat, and Asia weakened across most major markets.
Payrolls and chip stocks diverges investor sentiment
US stocks diverged as a cooler June payrolls report supported expectations for a steady Fed while renewed chip weakness pressured growth shares and triggered sector rotation. The DOW rose +0.6% towards a record high, the S&P 500 fell -0.5% and the NASDAQ declined -1.3% after non-farm payrolls rose 57,000, below expectations for 113,000, while unemployment was 4.2% versus a 4.3% forecast. Rotation out of red-hot chip stocks persisted, with Nvidia (-2.4%), AMD (-5.7%) and Micron (-6.8%) all sharply lower. The Roundhill Memory ETF fell -14.0%, returning to early June levels. Tesla dropped -7.0% despite a Q2 deliveries beat, while Rivian jumped +9.0% after raising delivery guidance. The front end of the yield curve fell following the payrolls data. The US two-year yield fell -3bp to 4.14%, while the 10-year yield rose +1bp to 4.49%.
European equities rise on positive economic news
Europe’s STOXX 600 rose +1.4% to a record high as weaker US payrolls and softer eurozone inflation supported expectations for a more benign rates backdrop. London’s FTSE 100 climbed +1.7% to a two-month high, with defence names such as BAE Systems (+5.0%) stronger after the UK government’s spending plans. UniCredit soared +4.0% on the final day of its offer period for Commerzbank (+2.0%), Deutsche Bank added +5.0%, Hermès and LVMH each rose more than +3%, and Rheinmetall closed +6.0% higher.
ASX flat as sectors weigh equally, Asia mostly down
Australia’s ASX 200 ended flat, with gains in major financials offset by weakness in miners, retailers and energy stocks. National Australia Bank rose +2.8% after bolstering its regulatory capital position via A$1.8bn of capital from its dividend reinvestment plan. Northern Star rose +5.5% after reporting FY26 gold sales slightly ahead of market expectations and naming its new CEO. Aristocrat Leisure jumped +2.6% after positive broker notes following its investor day, while Wesfarmers fell -4.0% after a broker downgrade on valuation and softer consumer conditions. Origin Energy dropped -5.4% on lower oil and LNG price forecasts. The NZX 50 fell -0.2%, weighed down by Spark (-3.6%). Asian indices were broadly lower, with Hong Kong’s Hang Seng bucking the trend by adding +0.8%. China’s Shanghai Composite fell -2.0%, Japan’s Nikkei 225 dropped -2.5%, South Korea’s Kospi shed -7.9% as SK Hynix fell -14.6% and Samsung Electronics lost -9.1%, while China’s CSI 300 declined -3.0%.
Oil prices steady
WTI crude dipped -0.1% to US$68.48/bbl, while Brent crude held steady at US$71.58/bbl as investors weighed signs of progress in indirect negotiations between the US and Iran, easing concerns about potential disruptions to crude supplies in the Middle East. Gold rose +2.0% to US$4,111.72/oz, while iron ore lost -1.8% to US$98.36/MT.
Today's Events
- ANZ Consumer Confidence (June 2026)
- AU: Services PMI (June 2026)