Markets Overview

  • ASX SPI 200 futures up 0.3% to 7,570.00
  • Dow Average up 0.8% to 38,456.64
  • Aussie little changed at 0.6572 per US$
  • U.S. 10-year yield fell 4.5bps to 3.8671%
  • Australia 3-year bond yield rose 0.2 bps to 3.57%
  • Australia 10-year bond yield rose 0.1 bps to 4.01%
  • Gold spot up 0.7% to $2,054.32
  • Brent futures down 1.9% to $79.01/bbl

Economic Events

  • 11:30: (AU) Dec. Owner-Occupier Loan Value MoM, prior 0.5%
  • 11:30: (AU) Dec. Investor Loan Value MoM, prior 1.9%
  • 11:30: (AU) Dec. Home Loans Value MoM, est. 1.0%, prior 1.0%
  • 11:30: (AU) 4Q PPI YoY, prior 3.8%
  • 11:30: (AU) 4Q PPI QoQ, prior 1.8%

A rally in some of the world’s largest technology companies sent US stocks higher, with investors awaiting Friday’s jobs report.

Wall Street shrugged off Jerome Powell’s message that a March Federal Reserve cut is unlikely, with equities rebounding ahead of megacap earnings.

The S&P 500 added over 1%, following its biggest drop on a Fed day since last March. US 10-year yields fell six basis points to 3.86%.

In the run-up to the US government’s jobs figures, a report showed unemployment claims unexpectedly rose to a two-month high. Economists surveyed by Bloomberg forecast payrolls rose by about 185,000 in January following a December gain of 216,000. Separate data showed labor productivity advanced at a rapid pace while measure of US factory activity climbed to the highest in 15 months.

Other News

Lenders including Bain Capital and Sona Asset Management have agreed to take over a distressed Australian wine producer as part of a debt restructuring.

The funds will get the keys to Accolade Wines from previous sponsor The Carlyle Group, by swapping their debt for shares in the company, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly about the matter.

An announcement is expected on Friday, one of the people said.

Representatives for Accolade Wines, Carlyle, Bain and Sona declined to comment.

A deal would provide relief for Accolade Wines, which is facing maturities for a A$150 million revolving credit facility in June and £301 million of term loans next year, according to data compiled by Bloomberg. The company built its business model around shipments to China and took a hit when President Xi Jinping’s government introduced tariffs of more than 200% on Australian wine imports in 2021.

The Australian Financial Review reported earlier on Thursday that the parties have reached a conditional agreement. Bloomberg News reported last year that Bain and Sona were part of a group of lenders set to take control of Accolade Wines, after scooping up the company’s deeply distressed loans on the secondary market.

While trade relations between Australia and China started to improve last year, future tariff relieve is unlikely to immediately lift Accolade’s volumes to earlier highs as the company has already unwound its investments in the country, analysts at Moody’s Investors Service had previously told Bloomberg News.