Markets Overview
- ASX SPI 200 futures little changed at 8,295.00
- Dow Average up 0.8% to 44,324.44
- Aussie down 0.2% to 0.6568 per US$
- US 10-year yield little changed at 4.3043%
- Australia 3-year bond yield rose 2 bps to 4.10%
- Australia 10-year bond yield little changed at 4.58%
- Gold spot down 2.4% to $2,619.45
- Brent futures down 2.6% to $71.94/bbl
Economic Events
- 10:30: (AU) Nov. Westpac Consumer Confidence SA MoM, prior 6.2%
- 10:30: (AU) Nov. Westpac Consumer Confidence Index, prior 89.8
- 11:00: (AU) Australia to Sell A$150m 0.25% 2032 Inflation-Linked Bonds
- 11:30: (AU) Oct. NAB Business Confidence, prior -2
- 11:30: (AU) Oct. NAB Business Conditions, prior 7
Stocks rose for a fifth straight session, Bitcoin topped $87,000 and the dollar hit a one-year high, with investors continuing to bet those trades will benefit from President-elect Donald Trump’s agenda.
Economically sensitive shares outperformed, with the Russell 2000 index of smaller firms climbing 1.5% to the highest since 2021. A closely watched gauge of banks rose 2.4%. Most big techs fell, with Nvidia Corp. down 1.6%. Tesla Inc. jumped 9%, extending a blistering surge. An equal-weighted version of the S&P 500 — where the likes of Apple Inc. carry the same heft as Dollar Tree Inc. — beat the US benchmark. That gauge is less impacted by the largest companies — providing a glimpse of hope the rally will broaden out.
“No pre-election stock flips = big post-election trades,” said Savita Subramanian at Bank of America Corp. “Election years – especially big changes on status quo – have tended to see more ‘flips’ in active portfolios. So far this year, clients have been steadfast in positioning, leaving room for additional rotation through year-end from tech to banks/cyclicals, green to brown commodity exposure etc.”
With the election and another rate cut in the rear-view mirror, the question is whether bulls can keep pushing the market to new highs, according to Chris Larkin at E*Trade from Morgan Stanley.
“Aside from any potential profit-taking after such a strong surge, this week’s inflation data may determine whether the market pads its gains,” Larkin said.
US inflation probably moved sideways at best in October, highlighting the uneven path of easing price pressures in the home stretch toward the Fed’s target. The core consumer price index due on Wednesday, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared to September’s readings.
The S&P 500 rose 0.1%, topping 6,000 and notching its 51st record this year. The Nasdaq 100 was little changed. The Dow Jones Industrial Average gained 0.7%.
Treasury futures were mildly lower as the cash market was closed due to a US holiday. The Bloomberg Dollar Spot Index added 0.5%. Oil sank as a soft outlook for demand in China continued to plague the market.
