| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38441.54 | -411.32 | -1.06% |
| S&P 500 | 5266.95 | -39.09 | -0.74% |
| Nasdaq | 16920.58 | -99.30 | -0.58% |
| VIX | 14.28 | 1.36 | 10.53% |
| Gold | 2336.90 | -4.20 | -0.17% |
| Oil | 79.33 | 0.09 | 0.11% |
US MARKET
Asian stocks are poised to decline following a downturn in US bonds and equities, driven by concerns that funding the US deficit will elevate yields as the Federal Reserve remains cautious about cutting rates. Futures for equity benchmarks in Sydney, Tokyo, and Hong Kong indicate a lower opening on Thursday.
On Wednesday, US Treasuries fell, pushing yields higher across the curve after weak demand in a $44 billion auction of seven-year securities. Yields rose globally, hitting multi-month highs due to higher-than-expected inflation in Germany and Australia. This scenario is troubling as rising global yields are unfavorable for a stock market with high valuations.
US bond yields surged following lackluster demand at government debt auctions and comments from Fed Minneapolis President Neel Kashkari, who indicated that more interest rate hikes are still on the table. The US 10-year yield increased by 6 basis points to 4.16%.
In corporate news, Salesforce Inc.’s shares dropped in extended trading after its outlook for the current quarter missed estimates. HP Inc. reported better-than-expected revenue, including the first increase in PC sales in two years. BHP Group abandoned its bid for Anglo American Plc.
Oil prices retreated, with West Texas Intermediate falling below $80, reversing Tuesday’s gains amidst renewed geopolitical risks. Corporate highlights include ConocoPhillips’ acquisition of Marathon Oil Corp. in a $17 billion deal and Abercrombie & Fitch exceeding sales estimates.
Major indices reflected the market sentiment, with the Dow Jones falling 1.1%, the S&P 500 slipping 0.7%, and the Nasdaq dropping 0.6%.
Australian shares are set to open lower, tracking weakness in New York amid concerns about interest rates. Near 8 am AEST, ASX futures were down 52 points or 0.7% to 7640, suggesting the benchmark could extend the three-week lows touched yesterday after a higher-than-expected inflation report.
ANZ noted that the ongoing reassessment of US Federal Reserve rate cuts continues to weigh on markets, with risk appetite weakening and markets now expecting the Fed’s first rate cut by December. In Australia, Reserve Bank Assistant Governor Sarah Hunter will participate in a fireside chat at the AIRA conference at 8:50 am.
BHP Group has decided against making a firm offer for Anglo American. BHP’s New York-listed shares closed down just 0.25%. Shares of Australian Agricultural Co and Elders will be on watch today after Agriculture Minister Murray Watt confirmed that China had lifted its ban on Australian beef exporters. Champion Iron will report earnings, while Life360 and Sigma Healthcare host AGMs. Technology One shares are trading ex-dividend.