Markets Overview
- ASX SPI 200 futures up 0.4% to 8,320.00
- Dow Average up 0.5% to 43,098.14
- Aussie down 0.4% to 0.6723 per US$
- US 10-year yield little changed at 4.1003%
- Australia 3-year bond yield rose 2.9 bps to 3.80%
- Australia 10-year bond yield rose 4.4 bps to 4.27%
- Gold spot down 0.2% to $2,652.36
- Brent futures down 1.9% to $77.55/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$100M 0.25% 2032 Inflation-Linked Bonds
Asian shares are poised to follow the lead of another strong performance on Wall Street, with stocks hitting fresh all-time highs. Oil dropped as concerns eased about Israel attacking Iranian energy facilities.
Futures show Tokyo stocks rising more that 1% after resuming trading from a holiday on Monday, while smaller gains are expected in Sydney and Hong Kong. With earnings reports poised to drive US sentiment this week, the S&P 500 rose almost 1%, notching another record — its 46th this year. That’s a hint investors are not deterred by the reduced forecasts for third-quarter results and are instead betting on positive surprises.
Oil dropped almost 3% in early trading Tuesday, after the Washington Post reported that Israel doesn’t plan on striking Iranian oil or nuclear facilities. That extended losses from Monday after China’s highly anticipated Finance Ministry weekend briefing lacked specific new incentives to boost consumption in the world’s biggest crude importer.
The S&P 500 hovered near 5,860 on Monday amid thin trading volume. The Nasdaq 100 added 0.8%. The Dow Jones Industrial Average climbed 0.5%. Nvidia Corp. led gains in megacaps, Apple Inc. gained on a bullish analyst call and Tesla Inc. rebounded after last week’s plunge. Goldman Sachs Group Inc. and Citigroup Inc. advanced ahead of results.
Treasury futures were marginally lower while cash trading was closed for a US holiday. The dollar edged up. Bitcoin jumped 5%.
Strategists are predicting S&P 500 firms will post their weakest results in the past four quarters, with just a 4.3% increase compared with a year ago, Bloomberg Intelligence data show. Meantime, corporate guidance implies a jump of about 16%. That solid outlook suggests companies could easily beat market expectations.
“Wall Street has underestimated Corporate America lately,” said Callie Cox at Ritholtz Wealth Management. “This environment is tough to get a read on, and I don’t blame anybody who’s approaching this rally with a bit of skepticism. We still think the biggest – and most expensive – risk here is to miss a rebound and an eventual rally higher.”
Chinese stocks overcame a bout of early volatility to post their biggest gain in a week on Monday, suggesting that investors are hopeful the government will deliver on its promise of more fiscal support.
Still, there’s more signs of economic weakness as a report Monday showed export growth in September unexpectedly climbed just 2.4% in dollar terms from a year earlier to the lowest level since May. A gauge of US-listed Chinese shares fell more than 2% overnight.
Other News
Australia is cracking down on unfair and excessive card surcharges to get a better deal for Australians and small businesses at the physical and online checkout, the government said in a statement.
- Government plans A$2.1m of new funding for the Australian Competition and Consumer Commission to tackle excessive surcharges, with further work underway to reduce payment fees.
- Australia prepared to ban debit card surcharges from Jan. 1, 2026, subject to further work by the Reserve Bank of Australia and safeguards to ensure both small businesses and consumers can benefit from lower costs.
- The RBA is responsible for regulating the payments system and is undertaking a review of merchant card payment costs and surcharging, with its first consultation paper released today.
(Bloomberg)
