Markets Overview
- ASX SPI 200 futures up 0.3% to 8,714.00
- S&P 500 up 0.6% to 6,966.28
- Dow Average up 0.5% to 49,504.07
- Aussie down 0.3% to 0.6679 per US$
- US 10-year yield little changed at 4.1653%
- Australia 3-year bond yield rose 1.6 bps to 4.09%
- Australia 10-year bond yield rose 2 bps to 4.69%
- Gold spot up 0.7% to $4,509.50
- Brent futures up 2.2% to $63.34/bbl
Economic Events
- 11:30: (AU) Dec. ANZ-Indeed Job Advertisements , prior -0.8%
- 11:30: (AU) Nov. Household Spending MoM, est. 0.6%, prior 1.3%
- 11:30: (AU) Nov. Household Spending YoY, est. 5.5%, prior 5.6%
Asian equities were poised to climb in early trading after US jobs data supported new highs for stocks on Friday. Investors were also focused on oil prices as protests in Iran intensified.
Equity index futures for Australia and Hong Kong pointed to gains, taking cues from the S&P 500 which finished Friday’s session 0.6% higher to set a new peak, while the tech-heavy Nasdaq 100 rose 1%. Japan’s market is closed for a public holiday Monday, which means there will be no US Treasuries trading in Asia.
The upward momentum followed largely benign employment data that showed slightly fewer roles were added to the economy than expected, while the jobless rate edged down to 4.4%. Separately, the US Supreme Court failed to weigh in on President Donald Trump’s tariffs, removing for now one impediment to equity gains.
In currencies, the dollar was mixed against developed market peers in early Asian trading, strengthening against the Australian dollar and steady against the euro. The greenback ended Friday with its best week since November.
The moves underscored a fragile calm across global markets despite geopolitical uncertainty from Caracas to Tehran, lingering questions over Washington’s tariffs, and signs the dominance of US mega-cap tech stocks may be waning.
Oil touched its longest run of weekly gains since June as Iran intensified a crackdown on protests across the country. The unrest has raised the possibility the Islamic Republic could be overthrown, a development that would transform global geopolitics and energy markets. Trump has threatened repercussions if demonstrators were targeted, while Tehran has warned the US and Israel against any intervention.
“The situation in Iran seems to be taking the country to the brink. The level of uncertainty in so many geopolitical hotspots is reaching levels not seen since the late 1930s,” Matt Maley, chief market strategist at Miller Tabak + Co., said in a note to clients. “It’s amazing how much complacency exists in the global stock markets right now.”
In Asia, data set for release includes imports and exports for South Korea, household spending in Australia and inflation for India.
Elsewhere, Group of Seven finance ministers meet in Washington to discuss rare earths Monday, while New York Fed President John Williams and Atlanta Fed President Raphael Bostic are set to speak.
The US 10-year yield ended little changed in Friday’s session, with the jobs data leaving expectations for additional Federal Reserve interest rate cuts intact. In Japan, government bonds traded at historically elevated yields as investors contend with the largest net increase in supply in well over a decade.
