Australia 200 Climbs to 8739 Despite Q1 GDP Miss and PMI Contraction

On June 3 the S&P/ASX 200 rose 14 points to 8,739 even as Q1 GDP printed a soft 0.3% q/q and 2.5% y/y, missing forecasts. The print followed May’s sharp deterioration in business surveys, with the services PMI falling to 48.7 and manufacturing PMI at 50.7 amid contracting output and new orders. Data-centre and war-driven fuel imports subtracted 0.8 pp from growth, while private business investment surged 6.0% q/q; swap markets now price only a 7% chance of another RBA hike, leaving the index little changed on the day.