Markets Overview

  • ASX SPI 200 futures little changed at 7,263.00
  • Dow Average up 0.1% to 34,890.24
  • Aussie little changed at 0.6475 per US$
  • U.S. 10-year yield little changed at 4.1120%
  • Australia 3-year bond yield fell 3.8 bps to 3.78%
  • Australia 10-year bond yield fell 2.8 bps to 4.07%
  • Gold spot up 0.3% to $1,942.54
  • Brent futures up 0.5% to $85.91/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 105-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 140-Day Bills
  • 11:30: (AU) July Private Sector Credit MoM, est. 0.3%, prior 0.2%
  • 11:30: (AU) July Private Sector Credit YoY, prior 5.5%
  • 11:30: (AU) 2Q Private Capital Expenditure, est. 1.0%, prior 2.4%

Shares in Asia are poised to follow Wall Street gains after US economic reports pointed to slowing growth, adding to bets the Federal Reserve is nearing the end of its tightening cycle.

Equity futures for Japan, Australia and Hong Kong all rose. The S&P 500 advanced for a fourth day Wednesday, extending this week’s gains to 2.5%. The tech-heavy Nasdaq 100 has climbed 3.5% this week.

Treasury yields edged lower across the curve after US gross domestic product rose at a 2.1% annualized pace in the second quarter, lower than the government’s previous estimate. An industry gauge of employment showed fewer jobs were added than economists forecast, while a measure of consumer confidence was also softer than expected.

The underwhelming numbers supported predictions for the Fed to ease back on interest-rate hikes. Swap contracts are now pricing in less than a 50% chance of another quarter-point increase this year.

In China, investors are focused on official purchasing managers index data due Thursday that is forecast to show further weakness in manufacturing and slowing growth in services.

Additional signs of official support for the world’s second largest economy emerged on Wednesday. The People’s Bank of China is drafting preliminary policies to give private businesses better access to funding, local media reported.

Other News

Australia and the European Union will resume talks on a free trade agreement Thursday, according to the office of Australian Trade Minister Don Farrell.