Markets Overview
- ASX SPI 200 futures down 0.3% to 7,997.00
- Dow Average little changed at 41,250.50
- Aussie up 0.3% to 0.6793 per US$
- US 10-year yield little changed at 3.8198%
- Australia 3-year bond yield rose 5.8 bps to 3.51%
- Australia 10-year bond yield rose 5.5 bps to 3.91%
- Gold spot up 0.3% to $2,524.64
- Brent futures down 2.0% to $79.77/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$800 Million 3.5% 2034 Bonds
- 11:30: (AU) July CPI Trimmed Mean YoY, prior 4.1%
- 11:30: (AU) 2Q Construction Work Done, est. 0.7%, prior -2.9%
- 11:30: (AU) July CPI YoY, est. 3.4%, prior 3.8%
Stocks in Asia are set to edge lower after a sluggish day on Wall Street, as traders look to Nvidia Corp.’s results for clues on whether the artificial-intelligence euphoria that’s powered the bull market has more room to run.
Futures for equity benchmarks in Tokyo, Hong Kong and Sydney pointed down, and those for the US also nudged lower in early trading. The giant chipmaker is set to report earnings after Wednesday’s session, with investors waiting to see whether the AI darling will at least match lofty estimates.
Investors are gearing up for big swings in Nvidia’s shares after the $3.2 trillion company led by Jensen Huang reports. Trading in the options market implies a nearly 10% move in either direction on the day following the results. The stock has rallied about 160% this year and 1,000% from its October 2022 bear-market low.
To Chris Senyek at Wolfe Research, Nvidia’s results will set the tone for markets before a key US payrolls report on Sept. 6.
“We remain bullish, but risks are now skewed to the downside over the very near-term,” Senyek said. “From a seasonal perspective, we enter a weaker period that is even more amplified in election years.”
In other markets, Bitcoin fell below the $60,000 level early Wednesday as part of a broad crypto market retreat that included a sharp drop in second-largest token Ether. Oil gained.
The S&P 500 edged higher to around 5,625 on Tuesday while the Nasdaq 100 rose 0.3%. A closely watched gauge of chipmakers added 1.1%. Nvidia climbed 1.5%. Super Micro Computer Inc. slid 2.6% after Hindenburg Research said it’s short the maker of server equipment.
Treasury 10-year yields rose one basis point to 3.83% and a $69 billion US sale of two-year notes was well-received.