| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 42196.52 | 39.55 | 0.09% |
| S&P 500 | 5709.54 | 0.79 | 0.01% |
| Nasdaq | 17925.12 | 14.76 | 0.08% |
| VIX | 18.90 | -0.36 | -1.87% |
| Gold | 2679.80 | 9.70 | 0.36% |
| Oil | 70.95 | 0.83 | 1.18% |
US MARKET
US stocks extended their losses on Wednesday as tensions in the Middle East intensified following Iran’s missile attack on Israel. The escalation pushed oil prices higher for a second consecutive day, with Brent crude rising 2.7% to $75.63 per barrel and US West Texas Intermediate crude up 3% to $72.06 per barrel.
Investors moved toward risk-off assets in response to geopolitical uncertainty, with concerns growing that further escalation could disrupt oil production and transport in Iran, a major global oil producer. Analysts at TS Lombard warned of potential impacts on supply chains if the conflict worsens.
Despite the current volatility, market optimism remains focused on potential Federal Reserve rate cuts. The CME FedWatch tool indicates a 66% probability of a 25-basis-point cut in November, offering some longer-term support for equities. Bartels emphasized that ample liquidity from expected rate reductions could help markets recover despite uncertainties surrounding geopolitical tensions, a port strike, and election risks.
LOCAL MARKET
The Australian financial market closed marginally higher today, buoyed by strength in the energy and materials sectors. BHP and Rio Tinto led gains as iron ore prices rallied on renewed demand from China, while Woodside and Santos advanced on rising global oil prices, which hit a 10-month high. The ASX 200 added 0.3%, closing at 7,150 points despite weakness in the tech sector.
The financial sector remained relatively flat, with the major banks—Commonwealth Bank, ANZ, Westpac, and NAB—showing mixed performances. Commonwealth Bank edged up 0.2%, while ANZ and NAB were down slightly, as caution over global interest rate outlooks persisted.
The Australian dollar strengthened to 64.7 US cents, supported by positive trade balance data showing stronger-than-expected export growth, particularly in commodities. Investors remain focused on upcoming inflation data, which is expected to influence the Reserve Bank’s next monetary policy decisions. Bond yields remained elevated, reflecting expectations of tighter monetary conditions globally.