Markets Overview

  • ASX SPI 200 futures up 0.5% to 8,941.00
  • S&P 500 up 0.5% to 6,984.02
  • Dow Average down 0.9% to 48,984.81
  • Aussie up 0.9% to 0.6979 per US$
  • US 10-year yield rose 1.5bps to 4.2273%
  • Australia 3-year bond yield rose 4.5 bps to 4.31%
  • Australia 10-year bond yield rose 2.7 bps to 4.84%
  • Gold spot up 1.8% to $5,098.21
  • Brent futures up 2.7% to $67.33/bbl

Economic Events

  • 11:30: (AU) 4Q CPI QoQ, est. 0.6%, prior 1.3%
  • 11:30: (AU) Dec. CPI YoY, est. 3.6%, prior 3.4%
  • 11:30: (AU) 4Q CPI Trimmed Mean QoQ, est. 0.9%, prior 1.0%
  • 11:30: (AU) 4Q CPI Weighted Median QoQ, est. 0.9%, prior 1.0%
  • 11:30: (AU) 4Q CPI Weighted Median YoY, est. 3.2%, prior 2.8%
  • 11:30: (AU) 4Q CPI Trimmed Mean YoY, est. 3.3%, prior 3.0%
  • 11:30: (AU) Dec. CPI Trimmed Mean YoY, est. 3.3%, prior 3.2%
  • 11:30: (AU) Dec. CPI Trimmed Mean MoM, prior 0.3%
  • 11:30: (AU) Dec. CPI MoM, prior 0%

Australia 4Q CPI growth is likely to stay elevated at 3.2%, the same pace as 3Q, according to Bloomberg Economics. Woodside is set to release quarterly production report.

Wall Street traders sent stocks to all-time highs on speculation that solid corporate earnings will keep powering market gains. The dollar slid to an almost four-year low. Gold topped $5,100.

Not even a slump in consumer confidence prevented an advance that put the S&P 500 close to 7,000. Tech led gains before megacap results. UnitedHealth Group Inc. paced losses in insurers on a disappointing forecast and as the US proposed holding payments to private Medicare plans flat next year. In late hours, Texas Instruments Inc. gave a strong outlook.

The dollar slid to its lowest since February 2022 as signs of US support to boost the yen reinforced the argument about potential coordinated intervention to guide the greenback lower against key trading partners.

On the eve of the Federal Reserve decision, short-term Treasuries outperformed. That’s despite bets on a pause in the rate-cutting cycle as a steadier jobs market restores a degree of consensus among officials after growing division.

The expected decision to hold rates is likely to amplify the outrage of President Donald Trump, who wants them slashed.

With the economy still displaying exceptional strength, the Fed’s messaging is likely to emphasize a data‑driven approach to future policy decisions, according to Chris Brigati at SWBC. Meantime, he said the tone from this week’s Magnificent Seven earnings should be solid, and upward revisions from analysts signal confidence is building.

“This week is pivotal in setting the market’s near‑term tone as 2026 progresses,” Brigati noted. “History shows that a strong January often frames the narrative for the rest of the year, with investor psychology playing an outsized role.”

The S&P 500 rose 0.4%. The Dow Jones Industrial Average fell 0.8%. The Russell 2000 added 0.3%. The yield on 10-year Treasuries advanced two basis points to 4.23%. The dollar sank about 1%.