Markets Overview
- ASX SPI 200 futures up 0.3% to 6,792.00
- Dow Average up 1.3% to 31,481.40
- Aussie down 1.1% to 0.6311 per US$
- U.S. 10-year yield rose 2.3bps to 4.2402%
- Australia 3-year bond yield fell 15 bps to 3.61%
- Australia 10-year bond yield fell 5.1 bps to 4.15%
- Gold spot down 0.5% to $1,649.76
- Brent futures down 0.1% to $93.36/bbl
Economic Events
- 19:30: (AU) Australia-Budget. Australia’s budget deficit in fiscal 2023 is forecast to be less than half the level anticipated by the previous administration in March, bolstered by windfall revenue from surging commodity prices. Mining, infrastructure and childcare shares are set to get a boost.
US stocks rallied for a second straight session as investors geared up for some of the world’s biggest companies to report earnings this week. Traders also mulled whether the Federal Reserve will slow its pace of interest-rate hikes after assessing weak economic data that released Monday.
More than 80% of stocks in the S&P 500 index closed in green on Monday, buoyed by gains in technology and health-care companies. The Nasdaq 100 also rose more than 1%. US-listed Chinese shares plunged after that nation’s equity index tumbled as President Xi Jinping solidified his power.
US Treasury 10-year yields ended the session around 4.25%. UK bonds posted some of their biggest gains on record as investors expect incoming Prime Minister Rishi Sunak to repair the damage caused by predecessor Liz Truss after her massive package of unfunded tax cuts roiled financial markets.
Earnings remain in focus in the US, with investors still on edge over whether companies that are among the key profit-growth engines for the S&P 500 can deliver profits with inflation crimping margins. Of the almost 20% of companies that have reported so far, roughly 58% posted positive surprises in both revenue and earnings per share, according to data compiled by Bloomberg. As the Fed attempts to stomp out inflation, latest earnings displaying resilience and showing few signs of recession may be making some investors uneasy on equities.
Other News
Kanye West might have plans as ambitious as running for president.
In the midst of all the chaos from West’s past month, his team filed a slew of trademark applications that would allow West to create his own mini-community — or as West intends to call it, the “Yecosystem.”
West’s plan for his own small “universe” has been in the works for years, two Yeezy sources confirm to Rolling Stone. The sources describe it as a self-sustained enterprise that would have its own branded homes, retail stores that sell Yecosystem-branded food items and beverages. The plan is serious, with arrangements to launch the first campus as early as next month, one source says. Eventually, West hopes to establish these mini-communities across the country, the source says.
West’s vision is on par with Steve Jobs, Elon Musk and Jeff Bezos, another source says, adding that West is adamant on creating something equally as world-changing. “He’s trying to do shit that people couldn’t even conceive of and he’s trying to make it happen,” they explain. “He comes from a good place. It’s definitely his goal that everything that people touch that’s his is a good thing and has a good impact on the world.”
All signs point to the venture being called “Yecosystem,” as West’s team has registered a website domain for the name, complete with a mail server. It’s possible the name could change, as West is known to switch up plans at the last minute and trademarks have also been filed for Yzyverse, Yxyverse, and Yeezyverse. (A rep for West did not immediately reply to Rolling Stone‘s request for comment.)
(Rolling Stones)
