Markets Overview

  • ASX SPI 200 futures up 1.7% to 6,747.00
  • Dow Average up 2.9% to 30,066.63
  • Aussie up 0.2% to 0.6292 per US$
  • U.S. 10-year yield rose 6.6bps to 3.9619%
  • Australia 3-year bond yield fell 0.5 bps to 3.46%
  • Australia 10-year bond yield rose 5.5 bps to 4.00%
  • Gold spot down 0.5% to $1,664.90
  • Brent futures up 2.4% to $94.67/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$700 Million 4.75% 2027 Bonds

Asian equities are poised to climb in the wake of a shock rebound in US stocks that roared back from losses sparked by a hot inflation reading.

Inflation figures due in China provide further risks for investors amid sharp moves in currencies and bonds. The yen fell to its lowest level in more than 30 years after US CPI, then reversed the move in a whiplash trade that raised chatter of potential intervention. Policy-sensitive two-year Treasury yields soared 17 basis points.

The Treasury curve flattened, with the yield gain in the 10-year a more modest five basis points. Market bets on rates still lean toward back-to-back 75 basis-point hikes at the next two Fed meetings and expect the central bank to push rates past 4.85% before the tightening cycle ends.

Other News

At first glance at these images, you’d be forgiven for mistaking them as stills from the latest science fiction blockbuster. But the flying saucer-like object depicted in the images is very much real – and is set to be launched into space by NASA next month.

The Low-Earth Orbit Flight Test of an Inflatable Decelerator (LOFTID) is scheduled for November 1 and will see a huge heat shield launched into low Earth orbit.
Once there, it will inflate, before descending back to Earth.

NASA hopes the test will demonstrate how the inflatable heat shield can slow down a spacecraft enough to survive atmospheric entry. If it proves successful, the technology could one day allow humans to land safely on Mars.