Markets Overview

  • ASX SPI 200 futures up 0.3% to 8,193.00
  • Dow Average up 0.7% to 42,226.80
  • Aussie up 0.1% to 0.6155 per US$
  • US 10-year yield rose 3.3bps to 4.7923%
  • Australia 3-year bond yield rose 13 bps to 4.07%
  • Australia 10-year bond yield rose 8.9 bps to 4.63%
  • Gold spot down 1.1% to $2,659.02
  • Brent futures up 1.7% to $81.08/bbl

Economic Events

  • 10:30: (AU) Jan. Westpac Consumer Conf SA MoM, prior -2.0%
  • 10:30: (AU) Jan. Westpac Consumer Conf Index, prior 92.8

A renewed wave of dip buying fueled a rebound in stocks, following a selloff triggered by a recalibration of Federal Reserve wagers.

Almost 380 companies in the S&P 500 rose, with the gauge wiping out a decline that approached 1% earlier Monday. Energy producers joined a rally in oil while banks climbed ahead of the start of the earnings season. That’s despite a slide that engulfed tech powerhouses like Nvidia Corp. and Apple Inc. The bond market saw small moves after a rout driven by speculation of fewer Fed cuts this year amid stubborn price pressures.

“While even cooler-than-expected inflation data this week won’t nudge the Fed into another rate cut this month, it may help ease some of the bearish momentum — as could a solid start to earnings season,” according to Chris Larkin at E*Trade from Morgan Stanley.

To Callie Cox at Ritholtz Wealth Management, while analysts have been slashing earnings expectations “like mad,” the degree of cuts has been unusual, and the reports over the next few weeks could help stabilize the market.

“If anything, earnings are a reminder of how we got here,” she said. “It’s so important to remember how encouraging the story is for the economy right now. High expectations have caused us to stumble, but this dip could entice a lot of buyers simply because the foundation is strong.”

The S&P 500 rose 0.2%. The Nasdaq 100 fell 0.3%. The Dow Jones Industrial Average climbed 0.9%. A Bloomberg gauge of the “Magnificent Seven” megacaps slid 0.4%. The Russell 2000 index of smaller firms added 0.2%.

The yield on 10-year Treasuries advanced three basis points to 4.79%. The Bloomberg Dollar Spot Index was little changed. Oil rallied to the highest level in five months.

Other News

Bain Capital sweetened its bid for Insignia Financial Ltd. as takeover activity heats up for the Australian wealth manager.

The Boston-based private equity firm offered A$4.30 per share, Insignia said in a statement Monday. That matched an earlier bid from CC Capital Partners and comes after Insignia rejected a lower offer last month from Bain.

Bain, in its revised offer, said it was open to discussing a transaction structure that would allow Insignia shareholders to receive part of the deal as equity in the new entity.

Insignia shares advanced as much as 2.9% and traded at A$4.22 as of 10:06 a.m. in Sydney.

Overseas players are showing appetite in acquiring Australian money management firms, in part due to their exposure to one of the world’s fastest growing pension pools. Bain’s most recent offer values Insignia at about A$2.9 billion ($1.8 billion).