At the open on Friday, June 5, Australia's S&P/ASX 200 fell 37.6 points, or 0.43%, to 8,648.5.

Monex Europe analysts said if the Bank of England does not raise rates and UK political risk increases, sterling could weaken in the coming months. They said recent weak UK data does not support market expectations of a rate hike this year, and they still view a hike before 2027 as unlikely while a cut by year-end remains possible. Monex added that Andy Burnham winning the June 18 by-election and re-entering Parliament could threaten Prime Minister Starmer’s leadership. Monex forecasts GBP/USD to fall from 1.3455 to 1.32 and GBP/EUR from 1.1559 to 1.11 by this autumn.

Russian Foreign Minister Lavrov said at the St. Petersburg International Economic Forum on June 4 that Moscow has updated its Gulf security concept and submitted it to the Gulf Cooperation Council (GCC) and Iran, and is awaiting responses. The proposal affirms a non‑aggression principle and calls for consultations to: sign an agreement to increase military transparency and constrain military actions and exercise preparations; and adopt a package of confidence‑building measures. Deputy Foreign Minister Ryabkov said on June 1 that Russia has prepared the concept and is ready, via diplomatic channels, to assist any subsequent U.S.‑Iran agreement.