AI Exuberance Rotates Into Small Caps Amid Sticky Inflation and Looming Central Bank Tightening.Equities: The S&P 500 closed higher at fresh peaks with seven out of 11 sectors advancing, led by Utilities (+1.9%), Materials (+1.2%), and Industrials (+1%). Small-caps and non-tech cyclicals dramatically outperformed, while European bourses rallied 0.8% and the UK FTSE added 0.3%.

Natural Gas and Oil Forecast: 9 Weeks of Ceasefire — WTI & Brent Defend Channels, NatGas Eyes $3.256?.With geopolitical risk premium largely removed, oil benchmarks found support inside channels while natural gas maintained strength. WTI defended $94.68 with higher lows, Brent held $96.93, and NatGas retested $3.161 after surge.

Swiss Franc struggles as safe-haven demand supports USD.Swiss Franc struggles as safe-haven demand supports USD

Asia open: AI exuberance rotates into small caps amid sticky inflation and looming central bank tightening.Global stock markets climbed to record highs as AI-driven investment expanded beyond mega-cap technology firms into small-cap industrial and infrastructure companies. Alphabet's surprise US$80 billion capital raise underscored the enormous funding demands of the AI supercycle, while stronger U.S. labour data and rising Eurozone inflation reinforced expectations for tighter monetary policy.

USD/JPY Price Forecast: Bulls turn cautious near 160.00 amid rising intervention risk.USD/JPY Price Forecast: Bulls turn cautious near 160.00 amid rising intervention risk

ECB's Wunsch: US-Iran deal confirmation before June meeting won't derail interest rate hike hopes.ECB's Wunsch: US-Iran deal confirmation before June meeting won't derail interest rate hike hopes

US targets extra 12.5% tariffs on India, 59 other countries for not enforcing forced labour ban.US targets extra 12.5% tariffs on India, 59 other countries for not enforcing forced labour ban

Pakistan's budget unlikely to be presented on June 5, government source says.Pakistan's federal budget is not likely to ​be presented on June 5, a ‌government source and local media said on Wednesday, mainly as some fiscal measures have not been ​settled with the International Monetary Fund.

EUR/JPY Price Forecast: Declines below 186.00 amid intervention fears, but bullish vibe prevails.EUR/JPY Price Forecast: Declines below 186.00 amid intervention fears, but bullish vibe prevails

Indian central bank likely intervenes to limit rupee's fall, traders say.The Indian central bank likely intervened ​in the foreign ‌exchange market on Wednesday to limit the rupee's fall, ​four traders told ​Reuters, as a rise in ⁠crude prices on ​renewed U.S.-Iran hostilities pressured ​the South Asian currency.

Canadian Dollar weakens despite higher oil prices.Canadian Dollar weakens despite higher oil prices

investingLive Asia-Pacific FX news wrap: Gulf escalation, yen jitters, & biggest IPO ever.Tuesday was one of those sessions where the news flow refused to slow down, and the common thread running through almost all of it was the same: the US-Iran conflict, now more than three months old, is still getting worse before it gets better.

Trump tries again. US proposes 10% tariffs on 60 nations, forced-labour Section 301 probe.The US proposed tariffs of at least 10% on imports from around 60 countries under a Section 301 forced-labour probe, with higher 12.5% levies targeting China, India, Japan and others.

United States Dollar Index trades calm while US-Iran deal uncertainty escalates.United States Dollar Index trades calm while US-Iran deal uncertainty escalates

Australia Q1 GDP Grows 0.3% qoq, Misses Forecasts as Exports and Mining Drag Growth.Australia's economy grew by just 0.3% qoq in the first quarter, missing expectations of 0.5% qoq and signaling a loss of momentum at the start of 2026. Annual growth held at 2.5%.

Japan's PMI Services Stagnates While Cost Pressures Surge.Japan's service sector lost momentum sharply in May as rising costs linked to the Middle East conflict weighed on business activity and household spending. PMI Services (final) fell from 51.0 to 50.0, indicating stagnation after more than a year of continuous expansion.

British Pound steadies as increased risk aversion offsets hawkish BoE tone.British Pound steadies as increased risk aversion offsets hawkish BoE tone

Australia Q1 GDP slows to 0.3% as data centre imports drag on growth.Australia's Q1 GDP rose 0.3% q/q and 2.5% y/y, both below forecasts, as a surge in data centre and fuel imports wiped 0.8 percentage points from growth despite strong domestic demand.

New Zealand Dollar firms on upbeat China PMI; snaps two day losing streak vs USD.New Zealand Dollar firms on upbeat China PMI; snaps two day losing streak vs USD

Australian Dollar holds losses below 0.7200 after weaker GDP data, US-Iran tensions.Australian Dollar holds losses below 0.7200 after weaker GDP data, US-Iran tensions

China's RatingDog Services PMI rises to 54.4 in May .China's RatingDog Services PMI rises to 54.4 in May 

Australian Dollar trades below multi-decade high vs Yen after weaker GDP.Australian Dollar trades below multi-decade high vs Yen after weaker GDP

Australia economic growth slows to 0.3% in Q1.Australia's economy slowed in the March quarter ​as a boom in data ‌centres boosted business investment but also sucked in imports, a ​pullback that is likely ​to worsen in the face of ⁠higher borrowing costs and ​fuel prices.

Australia Gross Domestic Product (QoQ) below forecasts (0.5%) in 1Q: Actual (0.3%).Australia Gross Domestic Product (QoQ) below forecasts (0.5%) in 1Q: Actual (0.3%)

Yen slips to key 160 level as Gulf hostilities boost dollar.Persistent strength in the dollar sent the ​Japanese yen sliding to the key 160 level on Wednesday, as hostilities in the Gulf erupted anew and ‌bolstered demand for the safe-haven U.S. currency.

Japan services PMI flatlines in May as war costs hit record high.Japan's services PMI flatlined at 50.0 in May as business costs surged to a 43-month high on Middle East war disruption, ending 13 months of sector expansion.

Japan approves $19bn supplementary budget to offset Trump war Middle East inflation.Japan's cabinet approved a ¥3.1 trillion supplementary budget funded by deficit bonds to subsidise fuel and utility costs, with a ¥2.5 trillion reserve targeting gasoline prices first.

Rupee slips 29 paise to 95.27, RBI steps in to arrest slide.The Indian rupee weakened by 29 paise to close at 95.27 against the dollar on Tuesday, pressured by foreign investor outflows and high crude oil prices. The Reserve Bank of India's intervention helped contain further losses, with the rupee trading between 95.29 and 95.02.

Japan's Katayama: Ready to act on forex if required.Japan's Katayama: Ready to act on forex if required

Australia services PMI slips to 48.7 as Middle East war hammers demand.Australia's services PMI fell to 48.7 in May from 50.7, with new orders contracting at the fastest pace in two and a half years and employment falling for the first time since late 2024.