Markets Overview

  • ASX SPI 200 futures up 0.4% to 7,897.00
  • Dow Average little changed at 38,883.67
  • Aussie up 0.4% to 0.6629 per US$
  • US 10-year yield fell 5.7bps to 4.3636%
  • Australia 3-year bond yield fell 3.1 bps to 3.73%
  • Australia 10-year bond yield fell 2.4 bps to 4.17%
  • Gold spot up 0.6% to $2,352.69
  • Brent futures down 0.9% to $89.54/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$800 Million 4.75% 2027 Bonds

Stocks in Asia mostly pointed higher after US equities recovered and bonds climbed ahead of key inflation data that will help shape the outlook for the Federal Reserve’s next steps.

Futures for Hong Kong and Australia indicated gains, while those for Japan showed a small decline, with trading in the region likely to be muted by a holiday in Singapore. The S&P 500 fell as much as 0.8% before finishing 0.1% higher. Treasuries advanced, with 10-year yields dropping from the highest levels this year.

With no relevant economic data on schedule, US traders positioned for Wednesday’s consumer price index. Markets have been tempering bets on Fed cuts as economic data remain strong, with officials pushing back against the need for easing.

After struggling throughout most of the session, the S&P 500 rose back above the 5,200 mark, with Tesla Inc. leading gains in megacaps. Nvidia Corp. sank as Intel Corp. unveiled a new version of its artificial-intelligence chip. US 10-year yields fell six basis points to 4.36%. Oil dropped as traders assessed diplomatic efforts in the Middle East. Gold rose to a fresh record.

Other News

Australia will reform merger rules to boost competition and productivity in the economy, Treasurer Jim Chalmers said in a statement.

  • Changes will make it easier for the majority of mergers to be approved quickly, so regulator can focus on those that give rise to competition concerns
  • Deals will be approved within 30 working days where the Australian Competition and Consumer Commission decides they raise no competition concerns
  • Will bring more certainty, transparency to process by introducing a single expert decision-making process
  • To protect consumers from possible impacts of serial acquisitions, the ACCC will be able to consider the cumulative effect of mergers by the acquirer or target within the previous three years
  • Under these reforms, the ACCC will review deals that pose a risk to competition, consumers and the economy, while transactions that are in the national interest will be fast-tracked
  • A public register of all M&A will be created to promote transparency, accountability and competition
  • Subject to legislation, the reforms will start Jan. 1, 2026