Markets Overview
- ASX SPI 200 futures down 0.4% to 8,132.00
- Dow Average up 0.2% to 40,752.96
- Aussie down 0.3% to 0.6383 per US$
- US 10-year yield rose 5.7bps to 4.2176%
- Australia 3-year bond yield fell 1.4 bps to 3.30%
- Australia 10-year bond yield rose 2.4 bps to 4.19%
- Gold spot down 1.5% to $3,238.21
- Brent futures up 1.3% to $61.85/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$1.2 Billion 2.75% 2035 Bonds
- 11:30: (AU) March Retail Sales MoM, est. 0.4%, prior 0.2%
- 11:30: (AU) 1Q PPI YoY, prior 3.7%
- 11:30: (AU) 1Q PPI QoQ, prior 0.8%
- 11:30: (AU) 1Q Retail Sales Ex Inflation QoQ, est. 0.3%, prior 1.0%
US futures fell in Asia early Friday after Apple Inc. and Amazon.com Inc. underwhelmed, taking the shine off an otherwise strong run of tech earnings that spurred stocks higher.
Japanese equity futures climbed after the S&P 500 rose 0.7% Thursday for its eighth consecutive daily advance, its longest winning streak since August. The Nasdaq 100 climbed 1.1%, spurred on by favorable corporate results. The dollar rose and Treasuries fell.
Microsoft Corp. and Meta Platforms Inc. jumped on upbeat earnings, while a report of the US weighing a potential easing of restrictions on Nvidia Corp.’s sales to the United Arab Emirates pushed the chip-maker’s shares higher during Thursday’s session.
Apple reported sales from China declined more than anticipated in the latest quarter, overshadowing otherwise solid results that included overall sales that exceeded estimates. Meanwhile, Amazon gave an operating income forecast that missed expectations when markets closed, pushing shares lower in post-market trading.
Treasury yields rose, with the 10-year rate around 4.22%, after investors slightly curbed their bets on US interest-rates cuts this year following factory activity data. A dollar index climbed on reports that Donald Trump’s administration reached out to China to start tariff talks.
In Asia, the yen was steady after falling against the dollar after the Bank of Japan said it will take longer than it previously thought to hit the inflation target, leading traders to pare bets on further interest-rate hikes.
Elsewhere, traders will be keeping a close eye on the South Korean assets after the nation’s Finance Minister resigned in the latest twist in South Korea’s ongoing leadership crisis.
In commodities, gold dropped to a two-week low Thursday on signs of potential trade talk progress between the US and other countries, which is quelling demand for haven assets. US oil futures broke a three-day string of losses as stocks rallied and President Donald Trump threatened broader sanctions against buyers of Iranian crude.
US tech earnings largely drove optimism on Wall Street along with expectations that trade deals will offer many countries a reprieve from the highest tariffs first unveiled April 2. After parsing a slew of earnings, traders will turn their attention to the US jobs report that releases Friday, the last piece of significant data this week.
Sentiment was also supported by a report that the US has been pro-actively reaching out to China through various channels. At the same time, Trump remained defiant, saying Wednesday he would not rush deals to appease nervous investors and that market volatility has “nothing to do with tariffs.”
Earlier on Thursday, weekly data showed jobless claims jumped to the highest level since February. US manufacturing activity shrank by the most since November.
Elsewhere in corporate news, Airbnb Inc. issued a weak outlook for the second quarter, following online travel peer Booking Holdings Inc. in blaming economic uncertainties for softer travel demand in the US. Block shares fell more than 10% after-hours. The digital-payments company posted first-quarter results below analysts’ estimates and lowered its full-year profit guidance.
Meanwhile, General Motors Co. cut its full-year profit outlook citing exposure to auto tariffs, among the biggest financial hits revealed by any company so far to the trade tumult.
