Markets Overview
- ASX SPI 200 futures down 0.2% to 7,964.00
- Dow Average little changed at 41,954.74
- Aussie down 0.8% to 0.6305 per US$
- US 10-year yield fell 1.3bps to 4.2293%
- Australia 3-year bond yield fell 5 bps to 3.75%
- Australia 10-year bond yield fell 4.5 bps to 4.37%
- Gold spot little changed at $3,045.55
- Brent futures up 2.0% to $72.17/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$700 Million 2.75% 2029 Bonds
A fresh bout of instability gripped the stock market as concern around the potential impacts of a trade war outweighed the latest housing and jobs data showing the world’s largest economy is still holding up.
Equities erased earlier gains. Not only does sentiment remain fragile just a week after the S&P 500 slipped into a correction, the market is set for a big test on Friday. That’s when an estimated $4.5 trillion of options contracts expire in an event ominously known as triple witching that often stokes volatility. In late hours, FedEx Corp. — an economic barometer — sank after cutting its profit outlook. Micron Technology Inc. gave an upbeat sales forecast. Nike Inc.’s results surpassed analysts’ expectations.
“While the bottom of the recent correction is likely in, we probably haven’t seen the end of volatility,” said Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team. “Policy uncertainty hasn’t disappeared, and the market remains sensitive to sentiment shifts.”
After keeping rates steady this week, Federal Reserve Chair Jerome Powell downplayed growth concerns and the price hits that could be on the way from a trade war. President Donald Trump’s administration is preparing to announce a fresh wave of tariffs on April 2, though the exact scope isn’t clear.
“We will go up and down as policy uncertainty continues,” Michael Rosen, chief investment officer at Angeles Investments, said in an interview at Bloomberg headquarters in New York. “Investor sentiment is going to be very volatile, and that will be reflected in the market.”
The S&P 500 fell 0.2%. The Nasdaq 100 slid 0.3%. The Dow Jones Industrial Average wavered. Megacaps were mixed, with Apple Inc. down and Nvidia Corp. closing higher. A gauge of homebuilders advanced after a surprisingly solid reading on existing home sales.
The yield on 10-year Treasuries was little changed at 4.24%. The dollar rose 0.3%. The pound held losses as the Bank of England voted to stay put on rates amid a turbulent global backdrop.
