Markets Overview
- ASX SPI 200 futures up 0.3% to 8,226.00
- Dow Average up 0.2% to 42,208.22
- Aussie up 0.8% to 0.6892 per US$
- US 10-year yield fell 2.2bps to 3.7280%
- Australia 3-year bond yield fell 11 bps to 3.44%
- Australia 10-year bond yield fell 7 bps to 3.89%
- Gold spot up 1.1% to $2,656.91
- Brent futures up 1.7% to $75.16/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$1 Billion 3.75% 2034 Bonds
- 11:30: (AU) Aug. CPI Trimmed Mean YoY, prior 3.8%
- 11:30: (AU) Aug. CPI YoY, est. 2.7%, prior 3.5%
China-related shares are poised for further gains following a rally sparked by support measures from Beijing, while US stocks set fresh highs as investors prepare for further rate cuts.
Equity futures point to Hong Kong’s benchmark gaining 3.6% and China’s jumping 4.6%, while the Golden Dragon index of US-listed Chinese companies rallied 9.1% in New York trading on Tuesday. The moves follow the best day since 2020 for a gauge of mainland equities after China unveiled a sweeping stimulus package to support the economy and financial markets.
Stock futures for Australia rose, while those for Japan edged lower after the yen strengthened against the dollar in the prior two sessions. The S&P 500 rose 0.3% on Tuesday to set a fresh high, while the tech-heavy Nasdaq 100 climbed 0.5%.
Support measures unveiled by Chinese authorities Tuesday included interest rate cuts, more cash for banks, bigger incentives to buy homes and plans to consider a stock stabilization fund. The efforts may only buy China some time given the scale of challenges facing the economy.
Treasury yields edged lower Tuesday as US data showed signs of fragility in the economy, while an index of greenback strength fell 0.5% to trade near the lowest level this year. A gauge of emerging market currencies set a fresh record high.
