United States
Wall Street rallied as optimism built around a bipartisan deal to end the longest-ever US government shutdown. The S&P 500 climbed 1.5% to 6,832.89, the Nasdaq jumped 2.2%, and the Dow Jones added 0.8%. Risk appetite returned, sending both equities and Bitcoin higher as traders anticipated a reopening of government operations within days.
Technology megacaps led the advance, with Nvidia surging 5.5% and Alphabet gaining 4%. The Bloomberg Magnificent 7 Index rose 2.8%, its strongest performance since May. Investors viewed the Senate progress as a breakthrough that could restore access to economic data and offer clarity ahead of the Federal Reserve’s December meeting.
Bond yields inched higher, with the 10-year Treasury at 4.11% and the two-year yield at 3.59%. Market pricing suggests a roughly 60% chance of a 25 basis-point Fed rate cut in December. While some officials signalled a preference to pause, others supported further easing amid signs of softening labour conditions and moderating inflation.
Corporate earnings remain a tailwind for sentiment. Companies in the S&P 500 reporting third-quarter results have so far delivered average earnings growth of 14.6%, nearly double earlier forecasts. Analysts note the pace of earnings upgrades is at its highest since April, underscoring optimism around corporate resilience heading into 2026.
Among company highlights, Verizon raised US$11 billion in bonds to fund its Frontier acquisition, while Visa and Mastercard reached an agreement with retailers to reduce certain card fees. Diageo gained after naming former Tesco chief Dave Lewis as its new CEO, while Roche shares rose on positive late-stage trial results.
Europe
European equities mirrored Wall Street’s gains, with the Stoxx 600 Index up 1.4% in broad-based strength. Bank and resource stocks led the move higher as investors rotated back into cyclical sectors.
Banks advanced nearly 3%, supported by Commerzbank’s 6% rally following an analyst upgrade, while Santander, UniCredit, and BBVA also performed strongly. Industrials gained on upbeat earnings and analyst upgrades for firms such as Siemens, Safran, and Rolls-Royce. Basic resources and energy stocks rose in tandem with firmer gold and oil prices, lifting the broader sentiment across the region.
Luxury names like LVMH and Richemont added over 2%, while Diageo’s leadership change boosted the consumer staples sector. In health care, Roche rallied close to 4% after strong drug trial results helped offset declines in smaller biotech names.
Australia
Australian shares are poised to open higher, tracking global strength. ASX 200 futures rose 0.5% to 8,894, signalling early gains across major sectors, particularly in technology and mining.
Bendigo Bank reported unaudited first-quarter cash earnings of A$120.7 million, down 3.2% from the prior quarter due to higher operating costs, though margins improved to 1.91%. Commonwealth Bank posted a A$2.6 billion quarterly profit, with deposit and lending growth exceeding system averages. CEO Matt Comyn said the economy remains resilient, supported by rising disposable income and stable credit quality.
Life360 announced it would acquire US ad tech firm Nativo for US$120 million to strengthen its advertising operations, raising its full-year revenue guidance to between US$474 million and US$485 million. Megaport entered a trading halt as it prepares a $200 million equity raise to fund its acquisition of Latitude.sh and expand its network in India.
In other corporate news, Endeavour Group appointed Benjamin Ward as managing director of Dan Murphy’s, while Capricorn Metals outlined plans to explore underground mining potential at its Mt Gibson project. Super Retail confirmed Ward’s exit from Supercheap Auto, with Ben McConnell stepping in as interim MD.
Investors will also be watching a busy schedule of annual general meetings today, including Coles Group, Abacus Storage King, Goodman Group, Downer EDI, and Cromwell Property. Private reports on consumer and business confidence are also due, while across the Tasman, New Zealand will release fourth-quarter inflation expectations.
Commodities and currencies
Gold extended its rally, jumping 2.8% to US$4,112.12 an ounce, supported by ongoing hedge demand, despite Treasury yields ticking up. Brent crude rose 0.7% to US$64.06 a barrel, supported by improved risk sentiment and expectations for steady global demand. Iron ore climbed 0.9% to US$102.15 a tonne.
The Australian dollar strengthened 0.7% to US65.39¢ on the back of the global risk rebound, while the New Zealand dollar gained 0.4% to US56.45¢. The US dollar was little changed against major peers, while the Japanese yen slipped to 154.03 per dollar. Bitcoin advanced 1.5% to US$106,126, reflecting broader investor appetite for risk.
Economic Calendar
AU:
- Westpac Consumer Conf SA Nov 10:30
This article was written by James Woods, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
