United States
Wall Street finished the week on a firmer note, rebounding from early losses as optimism grew that US lawmakers are nearing a deal to end the country’s longest-ever government shutdown. The S&P 500 added 0.1 per cent, the Dow Jones Industrial Average rose 0.2 per cent, while the Nasdaq Composite dipped 0.3 per cent, marking its weakest week since April. The late-session bounce came as reports suggested negotiations in Washington were progressing, lifting investor sentiment after a turbulent fortnight.
With federal agencies unable to release official data, including the payrolls report, investors relied on private surveys indicating a cooling labour market. This strengthened expectations of a potential rate cut from the Federal Reserve in December to cushion the economy. Treasury yields were steady, with the 10-year holding near 4.09 per cent, while the US dollar eased 0.2 per cent against major peers.
Corporate developments also drew attention. Airlines continued to cancel flights amid staffing shortages caused by the shutdown, while technology shares came under renewed pressure as investors reassessed valuations in artificial intelligence-linked companies. Boeing announced a US$1 billion expansion of its Dreamliner plant in South Carolina, and KKR shares fell after the firm revealed a charge tied to an underperforming Asia fund. Comcast confirmed discussions to acquire ITV’s broadcasting arm, highlighting ongoing deal activity among large media firms.
Europe
European shares fell for a second consecutive week, with the Stoxx 600 down 0.5 per cent as mixed corporate results and sector weakness weighed on sentiment. Travel and technology were among the hardest hit, as British Airways owner IAG slumped over 11 per cent after reporting weaker sales on its North Atlantic routes. Property group Rightmove also dropped more than 12 per cent amid concerns that higher artificial intelligence investment would reduce near-term profitability.
Energy stocks steadied as oil prices recovered modestly, with TotalEnergies and Vestas advancing, offset by losses in Siemens Energy and Neste. The media sector outperformed, led by a sharp rally in ITV shares following news that Comcast is considering a takeover of its broadcasting division. Telecoms were also firmer, supported by gains in Deutsche Telekom and Orange.
Banks and industrials lagged. HSBC and BBVA led financial losses following downgrades, while Siemens and Schneider Electric dragged the industrials sector to its lowest level in two months. Novo Nordisk slipped over 5 per cent after reports suggested new US drug pricing rules could slow revenue growth next year.
Australia
The Australian sharemarket is set to open higher on Monday, with S&P/ASX 200 futures up 0.3 per cent to 8,794, following the positive lead from Wall Street. Investor focus remains on whether US lawmakers can finalise a budget deal to reopen the government, which could boost global sentiment.
Locally, earnings news was mixed. ANZ’s full-year profit missed expectations, prompting CEO Nuno Matos to call for stronger operational discipline. The bank confirmed that former executives, including ex-CEO Shayne Elliott, would forfeit bonuses after governance failings led to a record regulatory fine. Dyno Nobel narrowed its annual loss to A$53 million, supported by robust explosives demand, and forecast earnings growth for FY26.
In energy, AGL agreed to sell most of its 20 per cent stake in Tilt Renewables for A$750 million to investors led by Queensland Investment Corporation and the Future Fund, freeing up capital for new projects. Woodside’s Pluto 2 project faced the risk of industrial action, while Santos moved closer to shipping LNG from its A$4.5 billion Barossa development.
Engineering group Monadelphous forecast half-year revenue of about A$1.5 billion, underpinned by record workloads across energy and infrastructure. AUB Group extended its exclusivity period with EQT as the private equity firm teamed up with CVC Asia Pacific to pursue a joint A$45-per-share takeover bid.
The Australian dollar gained 0.3 per cent to US$0.6997, and bond yields edged lower, with the 10-year yield around 4.35 per cent. Analysts expect local shares to rise early in the week if global risk sentiment continues to improve.
Commodities and currencies
Commodities were broadly firmer, helped by a weaker US dollar and renewed risk appetite. Brent crude rose 0.4 per cent to US$63.63 a barrel, while West Texas Intermediate climbed 0.7 per cent to US$59.82. Gold extended its rally, gaining 0.6 per cent to US$4,001 an ounce amid ongoing political uncertainty.
Copper prices were steady, with Chile posting record fiscal revenues despite slower production. Iron ore fell 1.7 per cent to US$103.34 per tonne on subdued Chinese steel demand.
In currency markets, the euro firmed to US$1.1565, the pound rose to US$1.3163, and the Australian dollar advanced alongside commodities. The yen weakened 0.2 per cent to 153.43 per dollar, as traders favoured higher-yielding assets.
Economic Calendar
No Major Economic announcements
This article was written by James Woods, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
