United States
US equities were mixed overnight as investors weighed the imminent end of the federal government shutdown against signs of slowing momentum in technology shares. The Dow Jones Industrial Average rose 0.7 per cent to a new all-time high, supported by gains in cyclical and financial stocks. The S&P 500 finished virtually flat, while the Nasdaq 100 eased 0.4 per cent as large-cap technology names consolidated recent strength.
Bond yields moved lower, with the 10-year Treasury yield slipping to 4.07 per cent, as markets continued to price in the potential for a Federal Reserve rate cut in early 2026. The reopening of government agencies is expected to restore access to key economic data, which has been delayed during the shutdown, helping investors reassess the policy outlook ahead of the Fed’s December meeting.
Commodity markets showed a clear risk-off tilt. Oil prices fell sharply, with West Texas Intermediate down 4.3 per cent to USD 58.43 a barrel and Brent off 3.9 per cent to USD 62.61, after OPEC reported that global supplies had outpaced demand earlier than expected. Gold rose 1.7 per cent to USD 4,194 an ounce as softer yields boosted demand for defensive assets.
Corporate headlines were largely stock-specific. AMD rallied on a strong outlook for data-centre demand, while Chevron announced plans to build natural-gas-powered data centres to capitalise on the artificial-intelligence infrastructure boom.
Europe
European markets extended gains, with the Stoxx 600 up 0.7 per cent as earnings season continued to impress. Utilities, banks and miners led the advance. SSE surged nearly 17 per cent after outlining a major investment program, while RWE and Iberdrola rose on stronger-than-expected quarterly results.
Banking stocks were firmer, with HSBC, Santander and UniCredit all up more than 2 per cent. Luxury names also added support, LVMH, Richemont and Hermès each gained around 1.5 per cent, while energy producers lagged as the slump in oil prices weighed on Shell and BP.
Overall, the session reinforced the resilience of European corporate earnings despite weaker growth indicators, with several industrial and consumer names reaching record highs.
Australia
Australian shares are set to open slightly higher, tracking modest gains in global equities. Futures pointed to a rise of around 0.2 per cent, or 14 points, at the open. Technology and resources stocks are expected to underpin the advance following stronger gold and iron-ore prices overnight.
A busy corporate day will centre on results from Xero, Orica and Infratil. Xero reported a 42 per cent lift in net profit to NZD 134.8 million and 20 per cent revenue growth for the half year, supported by steady international expansion and the integration of US payments firm Melio. Orica posted its strongest profit in 13 years, with EBIT up 23 per cent to AUD 992 million, driven by strong demand for premium blasting products and digital mining services. The company expanded its buyback to AUD 500 million and raised its full-year dividend by 21 per cent. Regis Resources extended the mine life at its Duketon North operation, adding more than 120,000 ounces to reserves to take advantage of record gold prices.
The Australian dollar traded around US 65.4 cents, up 0.3 per cent, while 10-year government bond yields eased to 4.38 per cent. Investors will be watching the October labour-force report due at 11.30 a.m. for signals on wage pressure and employment resilience ahead of next month’s RBA meeting.
Commodities and currencies
Gold’s safe-haven appeal remained strong, with spot prices at USD 4,194 an ounce. Iron ore rose 1.1 per cent to USD 102.65 a tonne on steady Chinese steel demand, while oil recorded its steepest single-day decline in nearly five months amid oversupply concerns.
In currencies, the US dollar was steady. The euro held at USD 1.1587, the yen weakened to 154.8 per dollar, and the pound eased to USD 1.31. The Australian and New Zealand dollars edged higher alongside firmer commodity prices. Bitcoin slipped 1.1 per cent to just above USD 101,500.
Economic Calendar
AU:
- Employment Change Oct 11:30
- Unemployment Rate Oct 11:30
US:
- Initial Jobless Claims 00:30
- CPI YoY 00:30
This article was written by Calvin Curdie, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
