US equities edged higher as investors across both Australia and the US contemplated major central bank decisions and their consequences on their local economies.
In the US, trading lacked clear direction: quantitative data showed inflation broadly in line with expectations, with core PCE rising 0.2% month-over-month, and a softening labour market, with non-farm payroll gains slowing by 32,000 - both supportive of resuming an easing cycle. However, qualitative indicators told a different story.1 Consumer sentiment rose to 53.3, materially above the 52.0 expected, and services PMI also exceeded forecasts.2 A resilient consumer and firmer business confidence suggest underlying demand remains robust and could complicate the path toward lower inflation.
In Australia, equity markets weakened as expectations shifted toward the RBA maintaining a higher-for-longer stance. The broader risk-on complex came under pressure, although materials and energy provided some offset as commodity prices strengthened across the week.3
Silver (ETPMAG) was the top performing asset of the week and hit a new all-time high of US$59.25 per ounce as physical tightness in London combined with strong retail investment demand.4
In the world of commodities:
- Copper (WIRE) hit yet another all time high, touching US$11,666 per tonne over the weekend. A strong consumer, lower interest rates, and sustained AI narrative are all positives for copper – meanwhile supply-side disruptions threaten a deficit in 2026.5
- Gold (GOLD) could face some pressure if the Fed performs a ‘hawkish’ cut this week as the metal has likely priced in a deep rate cut path by the central bank throughout 2026.
- Crude oil futures (BCOM) rallied above US$60 after the OPEC+ decided to maintain current production levels rather than raise output further.6The move is seen as an attempt to guard against a possible supply glut.
Download the Weekly Market Monitor here.