Markets Overview

  • ASX SPI 200 futures up 0.4% to 8,252.00
  • Dow Average up 1.1% to 42,539.34
  • Aussie down 0.4% to 0.6715 per US$
  • US 10-year yield rose 5.5bps to 4.0667%
  • Australia 3-year bond yield rose 0.9 bps to 3.74%
  • Australia 10-year bond yield rose 2.6 bps to 4.19%
  • Gold spot down 0.5% to $2,609.36
  • Brent futures down 0.5% to $76.79/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 112-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 154-Day Bills
  • 11:00: (AU) Oct. Consumer Inflation Expectation, prior 4.4%
  • 18:45: (AU) RBA’s Hunter-Panel

Asian equities were primed to advance on Thursday after US stocks set a fresh high ahead of inflation data that may define Federal Reserve policy easing in the coming months.

Equity futures in Japan climbed, helped along by yen weakness on Wednesday, as did those in Australia and Hong Kong. An index of US-listed Chinese companies fell in New York trading, following the biggest drop in more than four years for mainland China’s benchmark index on Wednesday.

Few signs of extra support for China’s economy and financial markets appeared, indicating further gyrations for the nation’s equities. A gauge of volatility for Hong Kong stocks was a touch lower Wednesday but remained well above historically averages. One sticking point for investors is whether there will be more fiscal stimulus. Authorities said Wednesday a press conference on the topic will be held over the weekend.

The S&P 500 rose 0.7% to a record high, its 44th of the year, with tech shares again propelling the gains. Apple Inc. climbed 1.7%. Nvidia Corp. halted a five-day rally while Tesla Inc. edged lower ahead of the Robotaxi launch. Alphabet Inc. fell 1.5% on news the US is weighing a Google breakup in a historic big-tech antitrust case.

Gains for tech reflected prior weakness that represented an attractive buying opportunity, according to Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management. “We remain positive on the tech sector as well as the outlook for artificial intelligence,” she said. “We believe volatility should be utilized to build long-term AI exposure.”

US consumer price data to be released later Thursday is expected to show inflation further moderating, supporting the Fed’s anticipated easing in the coming months. Despite this, market pricing indicates the likelihood of another 50 basis point rate cut is all but off the table following last week’s strong jobs report.