Markets Overview

  • ASX SPI 200 futures up 0.6% to 8,801.00
  • S&P 500 up 1.6% to 6,904.50
  • Dow Average up 1.6% to 49,244.69
  • Aussie up 0.4% to 0.6762 per US$
  • US 10-year yield fell 4.2bps to 4.2508%
  • Australia 3-year bond yield fell 0.9 bps to 4.17%
  • Australia 10-year bond yield little changed at 4.78%
  • Gold spot up 0.4% to $4,782.73
  • Brent futures up 0.6% to $65.28/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 182-Day Bills on Jan. 22
  • 10:30: (AU) Australia to Sell A$1 Billion 140-Day Bills on Jan. 22
  • 10:30: (AU) Australia to Sell A$2 Billion 105-Day Bills on Jan. 22
  • 11:30: (AU) Dec. Employment Change, est. 27,000, prior -21,300
  • 11:30: (AU) Dec. Unemployment Rate, est. 4.3%, prior 4.3%
  • 11:30: (AU) Dec. Participation Rate, est. 66.8%, prior 66.7%
  • 11:30: (AU) Dec. Part Time Employment Change, prior 35,200
  • 11:30: (AU) Dec. Full Time Employment Change, prior -56,500

Australia’s December labor market report is likely to show solid job growth and a higher unemployment rate after November’s surprise weakness, according to Bloomberg Economics. Fortescue, Santos and South32 are among the companies releasing their quarterly updates today.

Speculative spirits were restored on Wall Street, fueled by hopes for a solution in Donald Trump’s ambitions for Greenland that would avoid tariffs. Stocks and bonds climbed and gold’s rally cooled as the president claimed a framework of a deal with NATO.

Following a cross-asset slide dubbed by some as a revival of the “Sell America” trade, the S&P 500 added 1.2% in its biggest advance since November. All of its major industries rose, with the gauge back in the green for 2026. Energy shares led gains, hitting all-time highs. Small caps beat the US equity benchmark for a 13th straight session. Big techs also rallied.

Trump’s decision marks a stark reversal for a president who has repeatedly attempted to coerce Europe over Greenland. It came after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte at the World Economic Forum in Davos.

Still, Trump did not detail the parameters of the “framework” and it was unclear what the agreement entails. Earlier Wednesday, the president ruled out the use of military force in his quest for Greenland.

“Due to the uproar about the US asserting itself and demanding that it buy Greenland from Denmark, Davos has become an emergency summit,” said Louis Navellier at Navellier & Associates. “Trump is a bull in a China shop, so it will be interesting to see how all the European allies react.”

Among the myriad of headlines from Davos, the veteran strategist said he personally liked that Trump said that the stock market would double after the rout on Tuesday in the wake of the Greenland chatter.

Meantime, US Supreme Court justices suggested they are wary of Trump’s effort to fire Federal Reserve Governor Lisa Cook over unproven mortgage-fraud allegations, saying the move could upend the Fed’s independence and rattle markets.

More than 400 shares in the S&P 500 rose. The yield on 10-year Treasuries slid four basis points to 4.25%. A $13 billion auction of 20-year bonds drew good demand. The dollar was little changed.