Markets Overview

  • ASX SPI 200 futures up 0.8% to 8,872.00
  • S&P 500 up 0.8% to 6,824.06
  • Dow Average up 0.6% to 47,371.15
  • Aussie up 0.3% to 0.6507 per US$
  • US 10-year yield rose 7.2bps to 4.1571%
  • Australia 3-year bond yield fell 4.7 bps to 3.63%
  • Australia 10-year bond yield fell 3.8 bps to 4.31%
  • Gold spot up 1.4% to $3,988.46
  • Brent futures down 1.5% to $63.48/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1.5 Billion 126-Day Bills
  • 10:30: (AU) Australia to Sell A$1.5 Billion 98-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 140-Day Bills
  • 11:30: (AU) Sept. International Trade Balance, est. A$4b, prior A$1.83b
  • 11:30: (AU) Sept. Exports MoM, prior -7.8%
  • 11:30: (AU) Sept. Imports MoM, prior 3.2%

RBNZ Governor Christian Hawkesby says the labor market has deteriorated as expected and economic cycle is consistent with August projections. NAB is scheduled to report FY earnings.

At a time when every dip in stocks is perceived as an opportunity, buyers emerged after a brief pullback led by some of the biggest winners of the artificial-intelligence boom. Bitcoin rallied. Bonds fell.

While Wall Street didn’t see a buying stampede, equities were able to bounce following a slide that underscored worries over how stretched the market has become and how sensitive it is to unfavorable news. Chipmakers, which bore the brunt of the recent selling, jumped on Wednesday.

“For investors with cash on the sidelines, the recent market pullback seems like a good time to buy, especially for investors with a longer time horizon,” said Robert Edwards at Edwards Asset Management. “Earnings are crushing it and growing faster than revenues, and that often leads to multiple expansion.”

Bonds slid as data showed US services activity expanded at the fastest pace in eight months. Federal Reserve Governor Stephen Miran said a report underscoring a rise in employment at companies was “a welcome surprise,” but reiterated rates need to be lower.

Treasury officials, unveiling their plans for financing the US government deficit over the November-to-January period, said they’d begun “to preliminarily consider future increases,” even as they continue to anticipate no changes to note and bond auction sizes “for at least the next several quarters.”

More than 300 shares in the S&P 500 rose, with the gauge closing just shy of 6,800. A gauge of semiconductors jumped 3%. The Russell 2000 added 1.5%. In late hours, Qualcomm Inc. gave a bullish forecast, though a tax change took a toll on profit last quarter.

The yield on 10-year Treasuries climbed seven basis points to 4.16%. Bitcoin gained about 3.5%. The dollar wavered.