ASX Tracks Wall Street Strength
The S&P/ASX 200 futures rose 5 points or 0.05% this morning. This follows Tuesday’s 0.95% rally, which snapped a five-day losing streak and placed the index 0.4% below all-time highs. Major US indices rallied overnight. The S&P 500 gained 1.11%, the Nasdaq rose 1.43%, and the Dow added 1.19%. The S&P 500 is now within 1% of its record high. The Nasdaq sits 1.3% below its December 2024 peak.
Global Drivers Shape Investor Sentiment
The positive sentiment emerged despite uncertainty around US tariff negotiations. Washington is struggling to secure trade deals before the 9 July deadline. Crude prices fell sharply overnight. Brent dropped 3.7% to US$67.7 a barrel and is down 15% from Tuesday’s brief US$80.34 peak. Jerome Powell addressed Congress with his semiannual testimony. He said, “The economy grew 2.5% last year. First quarter GDP dipped due to tariff-driven export swings.” Powell stated the labour market remains strong with 4.2% unemployment and 124,000 monthly job gains. He noted inflation remains above target with PCE at 2.3% and core PCE at 2.6% in May. Powell acknowledged tariffs could raise prices and slow activity but said the effects may be temporary. He confirmed interest rates would stay at 4.25–4.50% as the Fed awaits further data before changes.
Xero Announces US$2.5bn Melio Acquisition
Xero entered a binding agreement to acquire Melio for US$2.5 billion or A$3.9 billion in cash and scrip. Melio is a US-based small business bill pay platform that integrates accounting and payments. The transaction values Melio at a 13.4x multiple based on its FY25 annualised revenue of US$187 million. Melio delivered a 127% CAGR between FY21 and FY25. Its transaction margin rose from 7% in FY23 to 20% in FY25. Xero will fund the deal through a $1.85bn institutional placement and a $200m share purchase plan at $176 per share. The company will issue $360m in new shares to Melio shareholders and use $600m of existing cash plus a $400m credit facility. The combined business is expected to double group revenue by FY28, excluding synergies. Evan’s and Partners analyst Paul Mason said the deal aligns with Xero’s 3×3 strategy. He noted that Melio’s partners include CapitalOne, Gusto, Fiserv and Shopify. Mason added the acquisition price is high but justified if strategic benefits are achieved. He maintained a Neutral rating with a $186 target.
Global Data Centre to Delist from ASX
Global Data Centre has applied for ASX delisting under Listing Rule 17.11. The ASX gave in-principle approval subject to certain conditions. GDC ceased digital infrastructure investments on 17 April 2023. It sold its last asset, AirTrunk, on 24 December 2024. The company distributed $1.44 per share to shareholders on 29 May 2025. GDC now holds only cash with no capacity to invest without raising capital or changing its strategy. The company plans to wind up and delist in accordance with legal and fund requirements.
Paladin CEO to Exit in September
Paladin Energy CEO Ian Purdy will step down. Chief Operating Officer Paul Hemburrow will become CEO from 1 September 2025. The board said Purdy will support the transition until mid-December. Paladin has started searching for a new COO. Company filings show Purdy holds no shares in Paladin.
Droneshield Wins $61.6m European Military Contract
Droneshield secured $61.6 million in three new contracts from a European military client. The company said, “This is the biggest single order in DroneShield’s history and is larger than the company’s entire revenue for 2024 ($57.5m). Importantly, DroneShield’s recent production and inventory holding expansion means that this order is expected to be fully delivered within the quarter.” The deliveries will occur in Q3 2025 with payments expected in H2 2025. Droneshield’s stock has gained 35% this month amid ongoing Middle East tensions. It rallied 47% earlier in June but eased as truce talks progressed.
Pinnacle Founder Sells 3.9m Shares
Pinnacle Investment Management’s managing director Ian Macoun sold 3.9 million shares. The sale equals 21.4% of his holding and 1.73% of Pinnacle’s issued capital. Macoun still owns 14.3 million shares or 6.3% of issued stock. He stated he will not sell more shares in the next three months.
SRG Global Announces $850m in New Contracts
SRG Global announced $850 million in new contracts across Australia and New Zealand. The contracts span defence, water, health, energy, resources, education and commercial sectors. The company has a market cap of $950 million. The contracts begin immediately and will conclude by mid-2026. In November 2024, SRG announced $700 million in contracts and gained 6.7% that day.
Webjet Block Trade Hints at Helloworld
A 10.6 million share block crossed at 90 cents per share, equal to 2.7% of Webjet. Helloworld is suspected as the buyer after lifting its Webjet stake above 15% on 21 May 2025.
Citi Trims Treasury Wine Target
Citi reduced its Treasury Wine Estates price target from $8.68 to $8.50. The brokerage retained a Neutral rating, citing vague divisional guidance for FY26. Citi flagged uncertainty around DAOU’s outlook and the RNDC distributor shift. Penfolds’ sales could be impacted by weak demand outside China and grey market risk. Citi said cautious China growth could affect premium brands such as Grange and 707. It cut FY26e and FY27e NPAT by 4% and 5%. FY26e EPS was reduced by 1%, while FY27e remained flat due to a 5% buyback plan.
