Markets Overview

  • ASX SPI 200 futures little changed at 7,751.00
  • Dow Average down 0.2% to 38,647.10
  • Aussie down 0.4% to 0.6637 per US$
  • US 10-year yield fell 7.2bps to 4.2442%
  • Australia 3-year bond yield fell 6 bps to 3.88%
  • Australia 10-year bond yield fell 8.9 bps to 4.19%
  • Gold spot down 0.9% to $2,303.88
  • Brent futures down 0.6% to $82.07/bbl

Economic Events

Stocks closed at a fresh all-time high as tech rallied, with Treasury yields sinking on bets the Federal Reserve will cut rates this year amid signs of disinflation.

Equities rebounded after a brief drop, with the S&P 500 notching a fourth straight record — its 29th this year. In late trading, Adobe Inc. soared on a strong outlook. Treasuries climbed, with 10-year yields breaking below 4.3%. A $22 billion sale of US 30-year bonds saw strong demand.

The S&P 500 topped 5,430. Treasury 10-year yields fell seven basis points to 4.24%. The European Union’s bonds got hit as bets they would soon be added to key sovereign benchmarks received a blow, undermining the bloc’s efforts to broaden the appeal of its debt. Heightened political risk in France drove the premium on the nation’s 10-year bonds to the widest since 2017 over German peers.

Other News

New Zealand and China pledged to strengthen their economic ties even as they acknowledged disagreements during the first day of Chinese Premier Li Qiang’s visit to the South Pacific nation.

The countries signed a number of agreements that will support cooperation on trade, economic and environment issues, New Zealand Prime Minister Christopher Luxon told reporters Thursday in Wellington. Li arrived in the capital city earlier today, beginning a six-day tour of New Zealand and Australia amid concerns about China’s ambitions in the Pacific.

China is New Zealand’s largest trading partner, and Li’s arrival is the highest-level visit from Beijing since 2017. Luxon’s center-right government is deepening its relations with like-minded western nations such as Australia, the US and UK and considering whether to participate in pillar two of the Aukus security pact, which China opposes.

Luxon said he discussed issues with Li that are important to New Zealand’s national interests, such as foreign interference, as well as topics including the South China Sea and Taiwan Strait.

“As you would expect, this includes issues on which our perspectives differ,” he said. “China and New Zealand have different political systems, and as with all of our longstanding relationships, it is natural that we will raise our differences with China consistently and predictably.”

Li told reporters China will continue to view and handle bilateral relations from a strategic and long-term perspective.

“Given our different national realities and stages of development, it is natural that we don’t always see eye-to-eye with each other on everything, but such differences should not become a chasm that blocks exchanges and cooperation between us,” Li said.

He said China is committed to working with the New Zealand government to renew a longstanding friendship and to upgrade the comprehensive strategic partnership that was agreed in 2014.

China has invited New Zealand to be a guest country at the China International Import Expo, which will be held in Shanghai in November. The two countries agreed to negotiations to increase trade in services.

“China is ready to tap the potential for working with New Zealand in emerging areas such as digital economy, green economy, new energy vehicles, and creative industries, and to actively participate in transport investment and in infrastructure development,” Li said.

China is also ready to discuss more measures to facilitate two-way travel and will extend unilateral visa free treatment to New Zealanders, he said.