Markets Overview

  • ASX SPI 200 futures little changed at 8,011.00
  • Dow Average down 0.3% to 42,343.51
  • Aussie little changed at 0.6301 per US$
  • US 10-year yield rose 1.3bps to 4.3654%
  • Australia 3-year bond yield rose 0.7 bps to 3.80%
  • Australia 10-year bond yield rose 2.9 bps to 4.50%
  • Gold spot up 1.3% to $3,057.68
  • Brent futures up 0.2% to $73.93/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$700 Million 1.25% 2032 Bonds

Stocks fell after the US pushed ahead with tariffs on automakers, reinforcing concern about a widening trade war and offsetting data that showed faster-than-estimated growth in the world’s largest economy.

Just days before the end of a quarter that’s set to be the worst for the S&P 500 since 2023, the gauge slipped anew. Car giants from Toyota Motor Corp. to Mercedes-Benz Group AG and General Motors Co. got hit. AppLovin Corp. sank on a short report from Muddy Waters. Megacaps were mixed, with Apple Inc. up and Nvidia Corp. down. In late hours, Lululemon Athletica Inc. gave a gloomy outlook. The bond market flashed concerns about inflation as short-dated Treasuries outperformed longer ones.

President Donald Trump signed a proclamation to implement a 25% tariff on auto imports and pledged harsher punishment on the EU and Canada if they join forces against the US. The move overshadowed data showing the economy expanded at a quicker pace in the fourth quarter than previously estimated. A measure of inflation was revised lower.

To Bret Kenwell at eToro, the data won’t act as a major confidence boost for investors as their focus is firmly planted in the current economic landscape rather than the one from a few months ago.

“Investors will want to see in-line or better inflation results and a strong employment number to gain some reassurance,” he said.

Inflation remains at a disquieting level for the Federal Reserve. And Friday’s personal consumption expenditures price index is forecast to show signs of stickiness.

The S&P 500 lost 0.3%. The Nasdaq 100 fell 0.6%. The Dow Jones Industrial Average slid 0.4%.

The yield on 10-year Treasuries rose one basis point to 4.36%. The dollar wavered.