Markets Overview

  • ASX SPI 200 futures up 0.4% to 7,013.00
  • Dow Average down 0.6% to 33,734.88
  • Aussie up 1.0% to 0.6689 per US$
  • U.S. 10-year yield rose 3.6bps to 4.0616%
  • Australia 3-year bond yield rose 12 bps to 4.23%
  • Australia 10-year bond yield rose 13 bps to 4.26%
  • Gold spot up 0.7% to $1,925.05
  • Brent futures up 2.5% to $78.47/bbl

Economic Events

US stocks started July logging losses as traders parsed a batch of labor market readouts.

The S&P 500 fell 1.2% over the shortened holiday week while the Nasdaq 100 slid 0.9%. Yield on the two-year Treasury drifted down to 4.94% Friday. Investors were digesting government jobs data that fell short of estimates but brought signs that wage inflation remained a threat to the Fed’s fight against price gains.

Overall, the data showed signs of cracks in the American labor market, a day after a private payrolls report suggested resilience that may warrant several more rate hikes. Instead, traders reverted to expectations that the Fed will lift rates at its meeting later this month. The odds for another hike this year were less than 50%.

Other News

Virgin Australia Airlines Pty Ltd. will spend A$110 million ($73.6 million) on upgrading its planes in Australia and will add more fuel-efficient aircraft to its fleet, according to a company statement.

The airline will use the money to refurbish the cabins of its existing Boeing 737 fleet, and will also add eight Boeing 737-8 aircraft and 25 Boeing 737-10s, with most being delivered over the course of 2024, the company said in a release Saturday. The first of the new 737-8s was unveiled in Brisbane on Saturday to team members and their families.

The Boeing 737-8 aircraft are at least 15% more fuel efficient per flight than the Virgin Australia Boeing 737-800 NG fleet, the company said.

“We anticipate our fleet renewal program, together with other fuel-efficiency initiatives, will support over 80% of our 2030 interim target to reduce Virgin Australia’s carbon emission intensity by 22%,” Virgin Australia Group Chief Executive Jayne Hrdlicka said in the statement.

Bain Capital is planning to relist the airline in November through an initial public offering that could raise about A$1 billion, the country’s largest IPO in two years.