Markets Overview

  • ASX SPI 200 futures up 0.1% to 8,594.00
  • S&P 500 down 0.5% to 6,816.77
  • Dow Average down 0.8% to 47,349.93
  • Aussie down 0.1% to 0.6543 per US$
  • US 10-year yield rose 8.0bps to 4.0942%
  • Australia 3-year bond yield rose 1.9 bps to 3.89%
  • Australia 10-year bond yield rose 4 bps to 4.55%
  • Gold spot down 0.1% to $4,234.81
  • Brent futures up 1.4% to $63.25/bbl

Economic Events

  • 11:30: (AU) Oct. Building Approvals MoM, est. -4.5%, prior 12.0%
  • 11:30: (AU) 3Q BoP Current Account Balance, est. -A$13b, prior -A$13.7b
  • 11:30: (AU) 3Q Net Exports of GDP, est. 0, prior 0.1
  • 11:30: (AU) Oct. Private Sector Houses MoM, prior 4.0%

Australia’s economic growth probably accelerated at the fastest pace in three years last quarter, coinciding with hotter inflation. Economists predict gross domestic product advanced 0.7% in the three months through September, ahead of government data on Wednesday.

The start of a historically strong month on Wall Street saw stocks falling as traders shunned riskier corners of the market amid a selloff in cryptocurrencies. A rout in Japanese debt rippled through global bonds.

Caution prevailed after a rally that drove the S&P 500 to its longest streak of monthly gains since 2021. The Russell 2000 gauge of small caps slid over 1%. Nearly $1 billion of leveraged crypto positions were liquidated during a sharp drop in prices that brought fresh momentum to a wide-ranging industry plunge. Bitcoin sank to around $85,000.

Despite the reduced appetite for risk, Treasuries kicked off the week on the back foot as Japan’s bond yields climbed after comments from the central bank chief spurred rate-hike wagers.

Equities lost steam after investors wrapped up a choppy November with gains amid growing speculation that the Federal Reserve is more likely than not to ease policy this month.

“There’s some risk aversion creeping into the markets to start the week,” said Kyle Rodda at Capital.com. “At the moment, it looks benign and without a fundamental impetus.”

Fed officials will get a dated reading on their preferred inflation gauge before next week’s rate decision. The report due Friday is expected to show that inflationary pressures are stable, but sticky. Yet the debate will largely center on the job market when policymakers meet Dec. 9-10.

The S&P 500 briefly fell below 6,800, but closed slightly above it. Megacaps were mixed, with Alphabet Inc. down and Nvidia Corp. bouncing after Friday’s rout. Energy producers joined an advance in oil.

The yield on 10-year Treasuries rose eight basis points to 4.09%. The dollar wavered.