Markets Overview

  • ASX SPI 200 futures little changed at 7,199.00
  • Dow Average up 0.3% to 34,663.72
  • Aussie up 0.9% to 0.6431 per US$
  • U.S. 10-year yield rose 2.4bps to 4.2880%
  • Australia 3-year bond yield rose 4.9 bps to 3.83%
  • Australia 10-year bond yield rose 7.6 bps to 4.16%
  • Gold spot up 0.2% to $1,922.38
  • Brent futures little changed at $90.60/bbl

Economic Events

  • 10:30: (AU) Sept. Westpac Consumer Conf Index, prior 81.0
  • 10:30: (AU) Sept. Westpac Consumer Conf SA MoM, prior -0.4%
  • 11:00: (AU) Australia to Sell A$150 Million 1.25% 2040 Linkers
  • 11:30: (AU) Aug. NAB Business Confidence, prior 2
  • 11:30: (AU) Aug. NAB Business Conditions, prior 10

Asian stocks look set for a mixed opening, after Wall Street rose ahead of key US data that’s expected to show how close the Federal Reserve is from ending its rate hikes.

Futures in Japan pointed to gains, while Australian shares are poised to open flat and Hong Kong may dip. In the US, tech stocks led the way forward with the Nasdaq 100 rising 1.2%.

In currencies, the greenback retreated after a bullish streak as Asia’s biggest central banks took aim in different ways at its recent rally.

Focus in Asia remains on hopes for China’s recovery, amid fresh signs on Monday that Asia’s biggest economy may finally be starting to improve. Deflationary pressures eased and the yuan rallied, while strong credit data showed recent steps to bolster the real estate market may be starting to lift household demand for mortgages.

Meanwhile, after Bank of Japan Governor Kazuo Ueda aired the possibility of ending the developed world’s last key negative interest rate, the yen advanced the most in two months against the dollar. The nation is due to release key producer price index data on Wednesday.

In the US, consumers’ inflation expectations were mostly stable in August, but households grew more concerned about their finances and more pessimistic about the job market, according to a Fed Bank of New York survey. The consumer-price index report Wednesday will provide the latest insight into how much further the Fed may need to go to pull inflation back toward its target.

Oil steadied near its highs of the year after rallying about 10% in recent weeks, with technical indicators that suggest its gains may be overdone sapping the benefit of risk-on sentiment in broader markets. Energy-market watchers will also be keeping a close eye on Australia, after Chevron Corp. said it’s applying to a labor regulator to help resolve its dispute with unions at liquefied natural gas sites as workers continue partial strikes.

Other News

Australia’s government broke a monthslong deadlock in the upper house of parliament to secure support for its signature housing policy that aims to build 30,000 new homes to tackle an accommodation crisis.

Under the Labor government’s plan, a A$10 billion investment fund will be set up to generate returns that will then be pumped into constructing 30,000 new social and affordable homes over the next five years.

The left-wing Greens Party, which holds the balance of power in the Senate, announced Monday it would support the Housing Future Fund after having held out for more than five months. Greens leader Adam Bandt said he would back the fund after the government agreed to an additional A$1 billion for public and community housing.

Australia is facing a burgeoning housing crisis as both property prices and rents soar, fueled by a resumption of immigration post-Covid. That’s been exacerbated by a slowdown in construction across the nation due to labor shortages and rising materials costs.

The government had secured support from several independent senators for the legislation, but the Greens Party refused to back it without additional support for renters. The Greens repeatedly called for a national freeze or cap on rents, a measure that the government rejected.

The Greens said they would keep pushing for rental caps despite agreeing to pass the bill.