Markets Overview

  • ASX SPI 200 futures up 0.2% to 8,462.00
  • Dow Average down 0.3% to 44,509.14
  • Aussie up 0.8% to 0.6443 per US$
  • US 10-year yield rose 4.4bps to 4.1973%
  • Australia 3-year bond yield fell 2.2 bps to 3.79%
  • Australia 10-year bond yield fell 2.1 bps to 4.20%
  • Gold spot up 1.0% to $2,660.26
  • Brent futures up 1.3% to $72.05/bbl
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Economic Events

  • 11:30: (AU) Nov. NAB Business Conditions, prior 7
  • 11:30: (AU) Nov. NAB Business Confidence, prior 5
  • 14:30: (AU) Dec. RBA Cash Rate Target, est. 4.35%, prior 4.35%

Stocks retreated after a rally that put the market on pace for its best year since 2019, with traders awaiting key inflation data that will help shape the outlook for Federal Reserve rates.

The S&P 500 dropped from nearly overbought technical levels, following a series of all-time highs. Nvidia Corp. slid as China opened a probe over suspicions the giant US chipmaker broke anti-monopoly laws around a 2020 deal. Meantime, Chinese stocks that are listed in the US staged a sharp rally as top leaders in Beijing used their most direct language yet on providing monetary easing and boosting domestic consumption.

Data including Wednesday’s consumer price index will offer Fed officials a final look at the pricing environment ahead of their meeting the following week. Any indication that progress has stalled on the inflation front could well undercut the chances of a third straight reduction in rates.

“This Wednesday’s inflation data may hold the key to the Fed’s next move,” said Jay Woods at Freedom Capital Markets. “So far results have been in line with economists’ expectations and haven’t scared the market. However, an upward surprise should raise eyebrows at the Fed and could put another rate cut on pause.”

To Chris Larkin at E*Trade from Morgan Stanley, only a dramatic CPI increase would prevent the Fed from cutting rates in December.

The S&P 500 fell 0.6%. The Nasdaq 100 slid 0.8%. The Dow Jones Industrial Average lost 0.5%.

Treasury 10-year yields rose four basis points to 4.20%. The Bloomberg Dollar Spot Index rose 0.1%.

Oil climbed as China signaled bolder stimulus for next year, with traders also keeping an eye on developments in the Middle East.