Markets Overview

  • ASX SPI 200 futures down 0.3% to 7,086.00
  • Dow Average down 0.3% to 33,963.84
  • Aussie up 0.5% to 0.6445 per US$
  • U.S. 10-year yield fell 6.1bps to 4.4337%
  • Australia 3-year bond yield fell 1.3 bps to 4.03%
  • Australia 10-year bond yield rose 3.9 bps to 4.34%
  • Gold spot up 0.3% to $1,925.23
  • Brent futures little changed at $93.27/bbl

Economic Events

Asian equities were poised for a cautious open while the dollar traded in narrow ranges versus its major peers early Monday as investors weighed the Federal Reserve’s higher-for-longer stance.

Futures for Japanese shares were flat and those for Australia declined slightly. Contracts for Hong Kong stocks also dipped while an index of US-listed Chinese companies rose on news that Washington and Beijing are forming working groups to discuss economic and financial issues.

S&P 500 futures were up 0.2% in early Asian trading after the index fell by the same amount on Friday to cap its worst week since March. Nasdaq 100 futures advanced 0.2% after the underlying gauge ended little changed Friday, supported by gains in Apple Inc. as its latest iPhones and watches went on sale.

Treasuries, which managed a modest rebound on Friday, will be in focus again this week, with Fed officials speaking at public events. Investors will also be watching the release of a key inflation gauge in the US, and assessing the likely impact of a possible US government shutdown.

Other News

Australia, which has warned El Niño conditions will raise wildfire risks in the coming months, is now better equipped to respond to blazes, according to its agriculture minister.

Authorities have addressed issues with planning and resources identified in an inquiry into the 2019-2020 Black Summer fires, which burned through 24 million hectares (59 million acres) and killed 33 people, Murray Watt told Australian Broadcasting Corp. television Sunday.

“There will always be risk in a country like Australia, but we’re certainly doing everything we possibly can to be prepared,” Watt said.

Funding for aerial fire-fighting has been doubled since the Black Summer blazes, with about 500 aircraft now available nationwide, he said.

More than 200 key fire officials are meeting in Canberra from Monday to review preparations and conduct scenario tests aimed at identifying potential challenges.

“We’d rather find any gaps that might exist in the system before we get to this summer,” Watt said.