Markets Overview

  • ASX SPI 200 futures up 1.3% to 6,976.00
  • Dow Average up 1.3% to 32,403.22
  • Aussie up 1.9% to 0.6410 per US$
  • U.S. 10-year yield rose 1.2bps to 4.1584%
  • Australia 3-year bond yield fell 11 bps to 3.35%
  • Australia 10-year bond yield fell 7 bps to 3.85%
  • Gold spot up 3.2% to $1,681.87
  • Brent futures up 4.1% to $98.57/bbl

Economic Events

  • 16:30: (AU) Oct. Foreign Reserves, prior A$83.6b

Stocks rose, with traders weighing mixed jobs figures and awaiting next week’s inflation data for more clues on when the Federal Reserve would be able slow down its pace of rate hikes.

The S&P 500 halted a four-day slide. The dollar slumped the most since March 2020. Two-year US yields, which are more sensitive to imminent policy moves, reversed course and came down.

Fed fund futures are leaning toward pricing a 50-basis-point hike in December, with the peak around 5.1% next year. Officials this week raised rates by 75 basis points for the fourth straight time, lifting their benchmark to a target range of 3.75% to 4%.

Markets will watch the latest US inflation reading on Thursday after the core consumer price index rose more than forecast to a 40-year high in September. Even if prices begin to moderate, the CPI is far above the Fed’s comfort zone.

Other News

The Powerball jackpot has now grown to an estimated $1.9 billion after no winning tickets were sold in Saturday night’s drawing, according to the California Lottery Association.

The winning numbers were 28-45-53-56-69 and the Powerball was 20. The next Powerball drawing is set for Monday.

Saturday’s estimated $1.6 billion draw had been the “world’s largest lotto prize ever offered,” Powerball said.

Having no winners Saturday would “tie the game record for the number of consecutive drawings without a grand prize winner,” Powerball said. Saturday’s drawing at the Florida Lottery draw studio in Tallahassee was Powerball’s 40th since the jackpot was last won August 3 by a ticket in Pennsylvania.