US equities edged lower on Wednesday amidfresh doubts over a US-China trade deal, even as inflation data supported thecase for a rate cut. The ASX ended flat, with mixed performances across sectorsand commodities.
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The S&P 500 fell 0.27%, breaking a three-day winning streak, after optimism around a finalised US-China trade agreement lost momentum. While President Trump announced a draft deal involving reduced Chinese tariffs and increased US access to rare earth materials, vagueterms left markets unconvinced.
At the same time, May's US inflation data surprised slightly to the downside, with the consumer price index rising 2.4% annually, below the expected 2.5%. This lifted expectations of a Federal Reserve rate cut in September, now seen as a 70% chance. However, some analysts cautioned that new tariffs may reintroduce inflationary pressure.
Markets were also on alert following a partiale vacuation of US diplomatic staff from Iraq, as geopolitical risks continue to impact sentiment. On the corporate front, Chewy shares tumbled 11% despite beating revenue estimates, and Victoria’s Secret declined more than 5% after trimming its 2025 earnings forecast.
Locally, the ASX200 closed marginally higher, up 0.06%. Strength in the Materials sector offset weakness in Financials, Healthcare, and Technology. Commodities saw a mixed session: gold rose 0.3% to US$3,327.65 an ounce, Brent crude jumped 4.2% to US$69.66 per barrel, while iron ore slipped 0.2% to US$95.47 per tonne.
Cettire reported a 1.7% lift in full-year revenue to $693.8 million despite softness in the US luxury market. The retailer is focused on emerging markets, having recently expanded into Kuwait and Bahrain.
Cochlear downgraded its FY25 earnings forecast to $390–400 million, citing slower developed market growth. A new implant system will roll out across Europe and Asia Pacific from mid-June.
UBS maintained a neutral stance on Qantas after the airline announced it would close Jetstar Asia. The fleet will be redirected to domestic routes in a move to boost efficiency and margin.
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