ASX200 Index

The ASX200 slipped 0.5% last week as stocks largely trod water into the EOFY, with Trump’s comments about taking two weeks to decide on the US’s involvement in the Israel-Iran conflict making it easy for investors and traders alike to sit on their hands. However, the goalposts have shifted over the weekend, although our overall viewpoint, to “buy the dip” if it unfolds, remains intact. The risk-reward dictates that we need to be fussy. This morning, our “best guess” is that the ASX200 will gap down around ~0.5%, taking it back towards 8450, which provided support through late May.

• The SPI Futures were calling the ASX200 to open down 0.2% this morning, although the US increased involvement in the Middle East makes it likely to be closer to a 0.5% fall.