Markets Overview
- ASX SPI 200 futures little changed at 7,454.00
- Dow Average down 0.6% to 33,875.40
- Aussie down 0.9% to 0.7070 per US$
- U.S. 10-year yield fell 2.5bps to 3.3945%
- Australia 3-year bond yield fell 5.7 bps to 3.15%
- Australia 10-year bond yield fell 2.8 bps to 3.54%
- Gold spot down 1.9% to $1,913.00
- Brent futures down 0.8% to $82.18/bbl
Economic Events
- 09:00: (AU) Jan. Judo Bank Australia PMI Servic, prior 48.3
- 09:00: (AU) Jan. Judo Bank Australia PMI Compos, prior 48.2
- 11:00: (AU) Australia to Sell A$500 Million 3.25% 2029 Bonds
- 11:30: (AU) Dec. Home Loans Value MoM, est. -3.0%, prior -3.7%
- 11:30: (AU) Dec. Investor Loan Value MoM, prior -3.6%
- 11:30: (AU) Dec. Owner-Occupier Loan Value MoM, prior -3.8%
US stocks rallied for a third day as traders anticipate the Federal Reserve’s tightening cycle may be nearing its peak.
The tech-heavy Nasdaq 100 was boosted by Meta Platforms Inc.’s biggest surge since 2013, fueled by the company’s earnings and upbeat outlook. The index narrowly averted stepping into a bull market form its December low as it pared some of its gains in the afternoon. The S&P 500 closed up more than 1%. Both indexes rallied the most in the last three sessions since November.
Treasuries pared earlier gains, with the 10-year yield around 3.40%. A dollar index rose the most in nearly a month.
Risk assets have been bolstered since late Wednesday, when Fed Chair Jerome Powell said the central bank has made progress in its inflation battle even as labor-market data continues to show tightness that could add to wage pressures. The Labor Department releases its hiring report for January on Friday.
Other News
When a Porsche AG dealership in China posted an online advertisement for the latest Panamera, it wasn’t the sedan’s sleek curves that grabbed the most attention — it was the bargain price.
Drivers dreaming of a touch of luxury thought their luck was in after the dealership appeared to be offering the car for a bargain 124,000 yuan ($18,000), about one-eighth of the actual starting price of 998,000 yuan.
After hundreds of eagle-eyed consumers put down reservation fees of 911 yuan, Porsche acknowledged the dealership in the northern city of Yinchuan had uploaded information containing “a serious mistake in the listed retail price.”
Cue an embarrassing backtrack by the firm – and much disappointment on social media platform Weibo.
Upon realizing its mistake, the dealership took down the incorrect information immediately, a spokeswoman for the the Stuttgart, Germany-based carmaker said in response to a query from Bloomberg News.
The gaffe wasn’t bad for everyone. Porsche said it had been in touch with the first person who made an online reservation and “negotiated an agreeable outcome” regarding the one vehicle the dealership had in stock. It didn’t elaborate.
Porsche contacted all of the other bidders individually to explain the situation and apologize, and will refund reservation fees within 48 hours, the spokeswoman said.
Porsche’s China sales totaled $6.2 billion in the first half of 2022, making it the luxury car firm’s largest market. It sold 46,664 vehicles in China during the period — about 30% of global sales.
(Bloomberg)
