Markets Overview

  • ASX SPI 200 futures little changed at 7,753.00
  • Dow Average up 0.4% to 38,711.29
  • Aussie down 0.6% to 0.6650 per US$
  • US 10-year yield fell 6.1bps to 4.3279%
  • Australia 3-year bond yield fell 4.9 bps to 3.97%
  • Australia 10-year bond yield fell 6.5 bps to 4.30%
  • Gold spot down 1.0% to $2,327.00
  • Brent futures down 1.5% to $77.20/bbl
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Economic Events

  • 09:00: (AU) May Judo Bank Australia PMI Servic, prior 53.1
  • 09:00: (AU) May Judo Bank Australia PMI Compos, prior 52.6
  • 11:30: (AU) 1Q GDP YoY, est. 1.2%, prior 1.5%
  • 11:30: (AU) 1Q GDP SA QoQ, est. 0.2%, prior 0.2%

Bonds tracked Treasuries higher in early Asia trading on signs of a cooling US labor market that buoyed Federal Reserve rate-cut bets. Stocks are set for a mixed open.

New Zealand and Australian notes rose, along with futures for Japan’s, after US data showed job openings hit the lowest since 2021. That lifted Treasuries on Tuesday and reinforced speculation that the Fed will be able to cut rates this year, although stocks struggled to gain much traction. Equity contracts pointed to muted starts in Sydney and Hong Kong, and a decline for Tokyo.

To Bill Adams at Comerica Bank, the risk of wage-price pressures fueling inflation is falling, which has the Fed breathing easier than a few years ago. That’s probably why Chair Jerome Powell took it in stride when inflation accelerated earlier this year, saying hikes were unlikely, he noted.

Treasury 10-year yields fell six basis points to 4.33% on Tuesday. The S&P 500 edged up to around 5,290, with futures little changed on Wednesday.

The MSCI Emerging Market Index fell the most in seven weeks after India stocks had their worst day in more than four years. Narendra Modi pledged to continue as the nation’s prime minister even after his party lost its parliamentary majority.

Oil fell for a sixth day on Wednesday as OPEC+’s plan to loosen its production curbs this year deepens the market’s bearish sentiment. Copper slid below $10,000. Bitcoin topped $70,000.

Other News

Australian rare earths firm Northern Minerals Ltd. said some of its data had been released onto the “dark web” months after the firm detected a breach of its cybersecurity protections.

“The exfiltrated data included corporate, operational and financial information and some details relating to current and former personnel and some shareholder information,” Northern Minerals said in a company filing on Tuesday.

The statement comes just a day after Australia’s government ordered China-affiliated investors to sell their shares in Northern Minerals, citing the need to protect national interest.

The firm said it had became aware of a security breach in March 2024. It was notified on Tuesday that some of the stolen information was now on the dark web, a hard-to-access part of the internet where illegal material often circulates.

Northern Minerals has informed Australian authorities about the theft, the company said in the filing.