Markets Overview

  • ASX SPI 200 futures down 0.6% to 8,119.00
  • Dow Average down 0.7% to 41,848.66
  • Aussie up 0.1% to 0.6580 per US$
  • US 10-year yield fell 1.8bps to 4.2824%
  • Australia 3-year bond yield rose 5.5 bps to 4.02%
  • Australia 10-year bond yield rose 3.9 bps to 4.50%
  • Gold spot down 1.5% to $2,746.64
  • Brent futures up 0.8% to $73.16/bbl

Economic Events

  • 09:00: (AU) Oct. Judo Bank Australia PMI Mfg, prior 46.6
  • 11:00: (AU) Australia to Sell A$800 Million 3.5% 2034 Bonds
  • 11:30: (AU) Sept. Home Loans Value MoM, est. 1.0%, prior 1.0%
  • 11:30: (AU) Sept. Owner-Occupier Loan Value MoM, prior 0.7%
  • 11:30: (AU) Sept. Investor Loan Value MoM, prior 1.4%
  • 11:30: (AU) 3Q PPI QoQ, prior 1.0%
  • 11:30: (AU) 3Q PPI YoY, prior 4.8%
  • 11:30: (AU) Sept. Household Spending MoM, prior 0%
  • 11:30: (AU) Sept. Household Spending YoY, prior 1.7%

Wall Street traders hoping for a clear direction on stocks after Thursday’s selloff didn’t get that in late hours amid a mixed bag of earnings from a pair of tech heavyweights.

A roughly $300 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) struggled for direction after the close of regular trading. Apple Inc., the world’s most valuable company, fell 2% after reporting weaker-than-anticipated sales in China. Amazon.com Inc. climbed 4% on a bullish forecast. Intel Corp. jumped 9% as its outlook sparked optimism over a turnaround effort.

In regular hours, a 1.9% slide in the S&P 500 wiped out the gauge’s advance for October, halting a streak of monthly gains that would have been the longest since 2021. The Nasdaq 100 dropped 2.4%. Disappointing outlooks from Microsoft Corp. and Meta Platforms Inc. fueled concern that a nearly 45% surge in the megacaps that have powered the bull market might have gone too far.

“Halloween is bringing tricks, not treats to many investors,” said Steve Sosnick at Interactive Brokers. “The market’s mindset seems to be switching from one where anything AI-related was a reason for enthusiasm towards one where investors are looking for some returns on their massive spending.”

Those worries hit a market showing signs of exhaustion near record highs ahead of next week’s US election and the Federal Reserve decision. Moreover, there’s a nearly palpable narrative taking hold that the election – rather than offering a sense of certainty – will cause volatility to spike, noted Quincy Krosby at LPL Financial. That’s not to mention the jobs report on Friday.

Treasuries saw their biggest monthly loss in two years on bets the Fed won’t be too aggressive with rate cuts amid a strong economy. The dollar notched its best month since 2022.

The yen jumped as much as 1%, extending gains seen after Bank of Japan Governor Kazuo Ueda said that currency markets have had a major impact on the economy, pointing to another potential rate hike in coming months. Chancellor of the Exchequer Rachel Reeves sought to reassure the financial markets after her budget on Wednesday triggered a selloff in UK bonds.

Oil surged on a report Iran is planning a fresh attack on Israel. Gold retreated as some investors booked profit after the metal’s rally to a fresh record.