Markets Overview

  • ASX SPI 200 futures up 0.1% to 7,669.00
  • Dow Average up 0.4% to 38,386.09
  • Aussie up 0.5% to 0.6566 per US$
  • US 10-year yield fell 5.0bps to 4.6136%
  • Australia 3-year bond yield fell 3.1 bps to 4.11%
  • Australia 10-year bond yield fell 3.4 bps to 4.49%
  • Gold spot down 0.1% to $2,335.47
  • Brent futures down 1.1% to $88.50/bbl

Economic Events

  • 11:30: (AU) March Private Sector Credit YoY, prior 5.0%
  • 11:30: (AU) March Private Sector Credit MoM, est. 0.4%, prior 0.5%
  • 11:30: (AU) March Retail Sales MoM, est. 0.2%, prior 0.3%

Stocks rose as a solid earnings season propped up the market despite bets the Federal Reserve will keep interest rates higher for longer.

After pulling back for the most part in April, equities staged a rebound toward the end of the month. Early results from the reporting season suggest that over 80% of US companies are beating expectations. First-quarter earnings are now on track to increase by 4.7% from a year ago, compared with the pre-season estimate of 3.8%, according to data compiled by Bloomberg Intelligence.

The S&P 500 topped 5,100. Tesla Inc. soared 15% after receiving in-principle approval from Chinese officials to deploy its driver-assistance system in the world’s biggest auto market. Apple Inc. rallied on a bullish analyst call. Boeing Co. raised $10 billion from a bond sale that attracted about $77 billion of orders.

US 10-year yields fell five basis points to 4.62%. The Treasury ramped up its estimate for federal borrowing for the current quarter to $243 billion, more than most dealers had anticipated. The yen climbed on speculation Japan intervened to support its beleaguered currency for the first time since 2022.

Other News

Major polluters in Australia may be spewing more than double the methane estimated in its national inventory data, according to a report from the Melbourne-based nonprofit The Superpower Institute, which suggests the government should invest in new monitoring and verification technology.

The study, which drew on atmospheric modeling and satellite observations, is the first analysis to use the institute’s new Open Methane tool. The monitoring system uses remote sensing data to better understand Australia’s releases of the potent greenhouse gas from fossil fuels. The project plans to offer an interactive map with daily alerts for unexpected and significant methane spikes later this year.

“We’re arguing for a verification system, which would require the government to invest in 12 ground stations and then use satellite technology” to cross reference whether what’s being reported on the ground is accurate, said Rod Sims, chairman of the institute.

A spokeswoman for Chris Bowen, Australia’s minister for climate change, said the country’s emissions reporting scheme and inventory is “world class” and “one of the most comprehensive in the world.” She emphasized Prime Minister Anthony Albanese’s government is committed to ongoing consultation and will work with experts and stakeholders to implement the most effective updates to ensure the scheme remains a reliable evidence base for effective climate action.

Empirical data from satellites and aerial surveys suggest that methane emissions from fossil fuels are widely underreported. Recently, separate studies conducted by energy think tank Ember suggest that both Indonesia and Germany underreport releases of the potent greenhouse gas from coal mining activities.

(Bloomberg)