Markets Overview
- ASX SPI 200 futures up 0.1% to 8,427.00
- Dow Average down 0.6% to 42,098.70
- Aussie down 0.2% to 0.6427 per US$
- US 10-year yield rose 3.4bps to 4.4773%
- Australia 3-year bond yield rose 2.9 bps to 3.42%
- Australia 10-year bond yield rose 2 bps to 4.33%
- Gold spot down 0.4% to $3,287.67
- Brent futures up 1.3% to $64.94/bbl
Economic Events
- 10:30: (AU) Australia to Sell A$1 Billion 70-Day Bills
- 10:30: (AU) Australia to Sell A$1 Billion 105-Day Bills
- 11:30: (AU) 1Q Private Capital Expenditure, est. 0.5%, prior -0.2%
- 11:30: (AU) SURVEY: Private Capital Expenditure 2025-26 A$155b
US and Asian equity futures climbed after upbeat earnings from Nvidia Corp. boosted investor sentiment. Treasuries fell and the dollar strengthened.
Shares in the chip-maker rose over 4% in post-market trading in New York Wednesday after the company delivered a solid revenue forecast for the current period, even as a slowdown in China weighed on results. The outlook shows Nvidia is ramping up production of Blackwell, its latest semiconductor design.
Contracts for the S&P 500 and Nasdaq 100 were higher after the two benchmarks fell 0.6% and 0.5% respectively on Wednesday. Japanese and Australian equity index futures advanced while those for Hong Kong edged lower. An index of the dollar climbed for a second day Wednesday. Oil rallied as traders weighed risks to Iranian and Russian supplies.
Treasuries declined across the curve. The US 10-year yield rose three basis points, its first increase in in four sessions. Pressure on US government debt was partly moderated by solid investor demand in a $70 billion auction of five-year notes, signaling an appetite for shorter-term securities.
The moves underscored the divergent narratives gripping financial markets as investors looked for signs the artificial intelligence boom will continue while contending with a potential slowdown in the global economy from tariffs.
Despite the favorable market reaction to Nvidia’s results, “the broader concern is that trade tensions and potential tariff impacts on data center expansion could create headwinds for AI chip demand in upcoming quarters,” Jacob Bourne, an analyst for Emarketer, said in a note.
News reports that the Trump administration is moving to restrict the sale of chip design software to China spurred a plunge in Cadence Design Systems Inc. and Synopsys Inc. Meantime, Tesla Inc. was said to begin its robotaxi service in Austin on June 12.
In Asia, data set for release includes private capital expenditure for Australia, consumer confidence for Japan and an interest rate decision in South Korea. Markets are closed in Indonesia.
Traders will be keeping an eye on Japanese government bonds after Wednesday declines following weak demand for an auction of 40-year debt. The yen was steady early Thursday around 144 per dollar.
The European Union’s trade chief, Maros Sefcovic, plans to speak to US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer Thursday, seeking to fast-track negotiations to reach a deal before a July 9 deadline.
Trump bristled at suggestions that Wall Street believed he was ultimately unwilling to follow through on extreme tariff threats, saying Wednesday his repeated retreats were strategic efforts to exert trade concessions.
“The latest trade developments remain in line with our base case that pragmatism will ultimately prevail over confrontation,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. Assuming trade tensions continue to ease, she sees room for the equity market rally to resume into 2026, with the S&P 500 reaching around 6,400 by June of next year — or around 9% higher than Wednesday’s closing level.
“So far, the Trump administration has appeared to temper its more strident tariff policies in response to signs of distress in markets,” she said.
