Markets Overview

  • ASX SPI 200 futures up 0.5% to 8,891.00
  • S&P 500 up 1.5% to 6,832.89
  • Dow Average up 0.8% to 47,375.02
  • Aussie up 0.7% to 0.6538 per US$
  • US 10-year yield rose 1.4bps to 4.1102%
  • Australia 3-year bond yield rose 4.8 bps to 3.69%
  • Australia 10-year bond yield rose 4.5 bps to 4.40%
  • Gold spot up 2.8% to $4,113.86
  • Brent futures up 0.6% to $64.01/bbl

Economic Events

  • 10:30: (AU) Nov. Westpac Consumer Conf SA MoM, prior -3.5%
  • 10:30: (AU) Nov. Westpac Consumer Conf Index, prior 92.1
  • 11:30: (AU) Oct. NAB Business Confidence, prior 7
  • 11:30: (AU) Oct. NAB Business Conditions, prior 8

Australia’s pension giants are adding currency risk as their offshore assets surpass half of all investments, with desire for diversification outweighing fears the US dollar’s haven appeal is waning. Commonwealth Bank is scheduled to provide quarterly trading update.

Wall Street traders piled into riskier corners of the market, with stocks climbing alongside Bitcoin as the US Senate advanced a plan to end the longest-ever government shutdown, which would remove a significant economic headwind. Bonds lost steam.

The risk-on bid lifted the S&P 500 by 1.5%. Technology megacaps, which had been hit the hardest in recent sessions, saw their biggest advance since May. As demand for safety waned, Treasuries edged lower while the dollar underperformed most of its major currency peers.

President Donald Trump expressed support for the bipartisan deal to end the US shutdown, a key development that makes it likely the government reopens within days.

Markets took the Senate step as a breakthrough, given that ending the shutdown would bring access to economic data and more clarity on the outlook for monetary policy.

“Reopening would not only boost sentiment, but also open the way for data releases, which could provide more insight into the health of the US jobs market and, more broadly, the US economy ahead of next month’s Federal Reserve interest-rate decision,” said Fiona Cincotta at City Index.

The S&P 500 topped 6,800. A gauge of megacaps climbed about 3%. US health-care insurers and hospitals slid as lawmakers drew closer to ending the shutdown without securing an extension of Affordable Care Act subsidies. In late hours, CoreWeave Inc. posted solid sales.

Short-dated bonds trailed the rest of the curve, with two-year yields up three basis points to 3.59%. Treasuries are facing a demand test from this week’s auctions totaling $125 billion. The bond market will be closed Tuesday for Veterans Day.