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Wednesday, June 24, 2026
What’s happening: Shares of FedEx Corp fell in after-hours trading following the release of its fiscal fourth-quarter results.
What happened: The logistics giant reported better-than-expected sales and earnings for the latest quarter.
FedEx, which executed the spinoff of its trucking business earlier this month, reported a contraction its core delivery division’s margins amid higher US tariffs.
How were the results: The Memphis, Tennessee-based company reported low double-digit sales growth for the fourth quarter ended May 31.
Why it matters: On June 1, FedEx completed the spin-off of its trucking division – FedEx Freight – into a publicly traded company, to focus on its delivery business.
Several logistics giants, including FedEx and UPS, reported a decline in demand for delivery services after US President Donald Trump announced tariffs on most countries around the world.
Other US trade policies, including the end of duty-free low-value goods from Chinese retailers, also impacted shipping volumes.
FedEx said that operating margins in the Federal Express segment shrunk to 7.7% in the latest quarter, from 8.4% in the year-ago period, with a rise in costs for employee salaries, fuel and outsourced transportation.
CFO Claude Russ stated that margins could improve with a projected decline in compensation-related costs.
CEO Raj Subramaniam said, “With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”
FedEx also announced plans to repurchase up to $1 billion worth of shares in 2026.
Management guided to revenue growth of 11% year-over-year and earnings of $16.90-$18.10 per share for calendar year 2026.
In January 2025, the company’s board approved a change in its fiscal year end from May 31 to December 31, with the change becoming effective starting June 1.
How shares responded: FedEx’s shares fell 6.5% to $296.74 during the extended trading hours on Tuesday following the release of quarterly results. The stock has jumped more than 34% year to date.
What to watch: Investors will continue monitoring the performance of the spun-off division and the company’s performance in growing its overall profits by accelerating its higher-margin services and controlling costs.
Context: The AUD/USD forex pair fell this morning as investors digested the latest inflation data.
Details: Data released this morning showed that headline consumer prices declined 0.7% in May, sending annual inflation lower to 4.0% from the previous month’s 4.2%. This marked the slowest pace in three months.
Meanwhile, the trimmed mean inflation climbed 0.4%, higher than market estimates and raising the annual core inflation rate to 3.6%.
The Reserve Bank of Australia kept its key cash rate unchanged this month after increasing rates three times earlier in the year. The RBA also reiterated that further monetary tightening may be needed if inflation remains above the central bank’s target.
Meanwhile, signs of progress in the US-Iran talks lent support to overall market sentiment after Washington removed sanctions, allowing Tehran a 60-day license for the production, delivery and sale of Iranian oil.
Strength in the US dollar weighed on the AUD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, edged higher to 101.42.
The AUD/USD pair fell around 0.1% to 0.6913 this morning, while the S&P/ASX 200 rose 0.22% to 8,806.00.
What to watch: Investors will continue monitoring developments related to the US-Iran peace deal.
Data on employment change (0530 UAE Time), unemployment rate (0530 UAE Time) and household spending (0530 UAE Time) will be released on Thursday. Employment in Australia, which declined by 18,600 to 14.74 million in March, is expected to rise by 25,000 in April.
Analysts expect Australia’s unemployment rate to ease to 4.4% in May from 4.5% in April. Household spending in Australia, which dipped 1.1% in April, is expected to grow by 0.5% in May.
Other Markets: US trading indices closed lower on Tuesday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 0.09%. 1.44% and 3.29%, respectively.
Russia launched a missile attack on the central city of Kryvyi Rih in Ukraine. The news sent the USD/RUB pair lower in forex trading this morning.
UK’s manufacturing PMI slipped to 53.1 in June from 53.9 in the previous month. Manufacturing activity remaining in the expansion zone lent support to the GBP/USD forex pair.
Hong Kong’s annual inflation rate accelerated to 2.0% in May from 1.7% in the previous month, which sent the USD/HKD pair slightly higher in forex trading this morning.
South Africa’s FNB/BER consumer confidence index dipped to -19 in the second quarter from -7 in the previous period. Consumer confidence falling to its lowest level since the first quarter of 2025 lent support to the USD/ZAR forex pair.
The American Petroleum Institute said that US crude oil inventories declined by 765,000 barrels in the week ending June 19, compared to a sharp contraction of 8.33 million barrels in the previous week. However, WTI crude oil prices fell this morning.
Germany’s Ifo business climate (1200 UAE Time), Ifo current conditions (1200 UAE Time) and Ifo expectations (1200 UAE Time), Brazil’s FGV consumer confidence (1500 UAE Time), US current account (1630 UAE Time), building permits (1630 UAE Time), new home sales (1800 UAE Time) and EIA crude oil stocks change (1830 UAE Time), Mexico’s mid-month inflation rate (1600 UAE Time), Canada’s manufacturing sales (1630 UAE Time) and Bank of Canada’s summary of deliberations (2130 UAE Time), Russia’s consumer confidence (2000 UAE Time) and industrial production (2000 UAE Time) as well as Argentina’s current account (2300 UAE Time).
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