Markets Overview

  • ASX SPI 200 futures down 0.3% to 8,929.00
  • S&P 500 up 0.3% to 6,501.86
  • Dow Average up 0.2% to 45,636.90
  • Aussie up 0.4% to 0.6532 per US$
  • US 10-year yield fell 3.1bps to 4.2014%
  • Australia 3-year bond yield fell 3.5 bps to 3.39%
  • Australia 10-year bond yield fell 3.9 bps to 4.29%
  • Gold spot up 0.6% to $3,417.03
  • Brent futures up 0.4% to $68.33/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$1 Billion 2.75% 2028 Bonds
  • 11:30: (AU) July Private Sector Credit YoY, prior 6.8%
  • 11:30: (AU) July Private Sector Credit MoM, est. 0.6%, prior 0.6%

Asian equities were primed for a muted open after US stocks hit a fresh high, helped along by data that showed a robust economy ahead of the Federal Reserve’s favored price gauge due Friday.

Contracts for Japanese equity index futures were little changed while those for Chinese benchmarks climbed. The S&P 500 rose 0.3% to a record Thursday while the Nasdaq 100 gained 0.6%. Nvidia Corp. pared losses as several analysts raised their price targets despite an uninspiring forecast. US futures were little changed in early Asian trading Friday.

Data Thursday showed the US economy expanded faster than initially estimated, highlighting the resilience of consumer spending. While that soothed recession jitters, it raised doubts about inflation, with Friday’s report expected to show core personal consumption expenditures prices rising 2.9% in July, the fastest pace in five months.

“In-line or lower results will likely cement investors’ confidence in a September rate cut,” said Bret Kenwell at eToro. “While a higher-than-expected print may not take a rate cut off the table next month, it could sour Wall Street’s mood as inflation concerns grow.”

Treasuries mostly rallied Thursday except for short-dated US government bonds. The policy-sensitive two-year yield rose two basis points to 3.63%. Swap contracts continued to fully price in a quarter-point Fed cut this year by October and a second one by year-end. About 20 basis points of easing are priced in for September.

The yen held Thursday gains on the greenback in early Asian trading. An index of the dollar fell 0.3% Thursday.

Elsewhere, Alibaba Group Holding Ltd. earnings are set to land on Friday. A price war in China’s food delivery sector is hurting the country’s e-commerce giants, including JD.com Inc.

Meanwhile, the European Union said it has adopted draft regulations to remove all tariffs on US industrial goods and give preferential treatment to some US agricultural and seafood products.

Oil retreated early Friday after rising Thursday as the waning prospect of a peace agreement between Russia and Ukraine reduced the likelihood of more of Moscow’s supplies reaching broader markets in the near term.

Federal Governor Lisa Cook’s lawyers suggested that an unintentional “clerical error” may have been behind the mortgage dispute over which President Donald Trump wants her fired.