Markets Overview
- ASX SPI 200 futures up 0.3% to 8,134.00
- Dow Average up 1.3% to 43,084.92
- Aussie up 1.1% to 0.6341 per US$
- US 10-year yield rose 2.2bps to 4.2651%
- Australia 3-year bond yield rose 5 bps to 3.76%
- Australia 10-year bond yield rose 8.4 bps to 4.35%
- Gold spot up 0.1% to $2,921.46
- Brent futures down 2.4% to $69.35/bbl
Economic Events
- 10:30: (AU) Australia to Sell A$1 Billion 126-Day Bills
- 10:30: (AU) Australia to Sell A$2 Billion 77-Day Bills
- 11:30: (AU) Jan. Exports MoM, prior 1.1%
- 11:30: (AU) Jan. Imports MoM, prior 5.9%
- 11:30: (AU) Jan. Private Sector Houses MoM, prior -3.0%
- 11:30: (AU) Jan. Building Approvals MoM, est. 0%, prior 0.7%
- 11:30: (AU) Jan. International Trade Balance, est. A$5.9b, prior A$5.09b
A late-session runup in US stocks capped another volatile day for global markets, a session that also featured extreme moves in European bonds and equities. Geopolitical news dominated sentiment once again, including a delay in the imposition of auto tariffs in Canada and Mexico by the White House.
Wall Street remained focused on the latest developments around trade negotiations and how that could impact the economy and Federal Reserve decisions. The S&P 500 rose over 1%, rebounding from a two-day slide. Treasuries saw small losses in a stark contrast to the plunge in their European counterparts. German bunds tumbled the most since 1990. The dollar fell 1%. Oil sank to the lowest in about six months.
The market has been on a wild ride, and traders expect more of that as they assess the latest tariff developments and brace for Friday’s US payrolls report. Options trading projects the S&P 500 to move 1.3% in either direction, in what would be the most for any jobs day since the regional bank turmoil in March 2023.
The S&P 500 rose 1.1%. The Nasdaq 100 added 1.4%. The Dow Jones Industrial Average gained 1.1%.
The yield on 10-year Treasuries rose four basis points to 4.28%. The dollar dropped against most major currencies.
