Markets Overview

  • ASX SPI 200 futures down 0.5% to 8,313.00
  • Dow Average down 0.8% to 42,725.24
  • Aussie down 0.4% to 0.6701 per US$
  • US 10-year yield fell 7.3bps to 4.0278%
  • Australia 3-year bond yield fell 1 bp to 3.79%
  • Australia 10-year bond yield fell 2 bps to 4.25%
  • Gold spot up 0.5% to $2,661.71
  • Brent futures down 3.7% to $74.60/bbl

Economic Events

  • 09:00: (AU) RBA’s Hunter-Speech
  • 10:30: (AU) Sept. Westpac Leading Index MoM, prior -0.05%
  • 11:00: (AU) Australia to Sell A$700 Million 3.75% 2034 Bonds

Stocks in Asia are set to follow a US selloff after a disappointing outlook from Europe’s most-valuable tech firm and concern about tighter US curbs on chip sales hit the industry that’s powered the bull market.

Futures for Tokyo, Hong Kong and Sydney pointed to drops after the S&P 500 fell 0.8% and a closely watched gauge of semiconductor firms plunged the most since early September. ASML Holding NV sank 16% after the Dutch giant cut its guidance for 2025 while Nvidia Corp. lost 4.5% on news US officials have discussed capping sales of advanced AI chips to some countries.

Investors got so bullish that it might be time to sell global stocks, according to an investor survey by Bank of America Corp. Allocations to equities surged, while bond exposure sank and cash levels in global portfolios fell to 3.9% in October from 4.2% last month, triggering a “sell signal”, strategists led by Michael Hartnett wrote.

“US equity markets, skewed more toward large-cap leadership, are seeing profit-taking today as earnings season ramps up against overbought/extended charts,” said Dan Wantrobski at Janney Montgomery Scott.

The S&P 500 slipped to around 5,815 and the Nasdaq 100 lost 1.4%. The dollar climbed to the highest level in about two months after former President Donald Trump defended proposals to dramatically raise tariffs on foreign imports. Treasury 10-year yields declined seven basis points to 4.03%.

Oil clawed back some gains in early trading after plunging Tuesday following a report that Israel may avoid targeting Iran’s crude infrastructure, easing concerns about a potential supply disruption.