United States
Wall Street was whipsawed overnight as investors juggled optimism around earnings with renewed anxiety over US-China trade tensions. The S&P 500 swung sharply before finishing 0.4 per cent higher, the Nasdaq 100 added 0.7 per cent, while the Dow Jones Industrial Average was little changed.
Markets initially rallied more than 1 per cent before giving back gains when headlines suggested Washington and Beijing could escalate their tariff dispute. Sentiment later recovered as traders refocused on corporate results and the prospect of further Federal Reserve rate cuts. Fed Governor Stephen Miran said policymakers face “more downside risks than there was a week ago,” citing trade uncertainty and calling for a faster move toward neutral policy.
Earnings season brought a string of strong results. Morgan Stanley surged after its trading arm outperformed peers, Bank of America beat profit forecasts on robust M&A activity, and United Airlines gained after posting better-than-expected earnings and upbeat guidance. Nvidia climbed as HSBC upgraded the stock to buy, and Apple unveiled refreshed versions of its iPad Pro, Vision Pro and MacBook Pro featuring the new M5 chip ahead of the holiday season.
Treasuries steadied following a rally that had pushed two-year yields to their lowest since 2022. The 10-year Treasury yield held near 4.04 per cent, while the VIX volatility index eased to 20.6. Gold extended gains, rising 1.6 per cent to US$4,209.88 an ounce, and West Texas Intermediate crude slipped 0.4 per cent to US$58.47 a barrel.
Europe
European equities closed broadly higher, buoyed by standout results from luxury and technology names. The Stoxx Europe 600 gained 0.6 per cent, led by a sharp rally in the Consumer Products and Services sector after LVMH posted a surprise return to quarterly sales growth, easing fears of a prolonged luxury slump. Shares in LVMH jumped 12 per cent, Hermès added 7.4 per cent, and Richemont rose 6.3 per cent. The rebound in high-end goods lifted sentiment across the region, suggesting resilient demand from wealthy consumers despite slowing global growth.
Tech stocks also strengthened after ASML reported its highest bookings since 2023, driven by surging artificial-intelligence investment. The semiconductor equipment maker gained 3 per cent, while SAP and Capgemini also advanced. Chemical producers such as BASF and Akzo Nobel rallied after positive analyst calls, and TotalEnergies rose 3.7 per cent as improved refining margins offset softer oil prices.
Media names extended Tuesday’s momentum, with Publicis climbing nearly 5 per cent following its beat-and-raise update. However, the defence sector lagged for a fifth session after Citi downgraded Renk, sending the stock down 6 per cent, while Rheinmetall fell 5 per cent. Banks and insurers were mixed: BNP Paribas and Lloyds gained, but Allianz and Generali declined amid M&A speculation.
Across the region, energy shares found footing as crude prices steadied and optimism around US rate cuts supported broader risk appetite. Utilities marked a ninth consecutive advance, touching their highest levels since 2008, while basic-resource stocks such as Rio Tinto and Anglo American benefited from a rebound in copper prices after Fed Chair Jerome Powell hinted at another rate cut later this month.
Australia
Australian shares are set to open slightly higher, tracking the global upswing in equities. ASX 200 futures were up 5 points, or 0.1 per cent, to 9024 in early trade after the benchmark index rose 1 per cent on Wednesday to close at 8,990.9, buoyed by gains in health-care and mining stocks.
Telix Pharmaceuticals led the charge, surging 16 per cent—its biggest jump since 2022—after upgrading its full-year revenue guidance. IperionX advanced 11 per cent, and Liontown Resources climbed 9 per cent as lithium names recovered. On the downside, DroneShield slid 9.6 per cent following the launch of its new enterprise platform, while GrainCorp tumbled 4.2 per cent on heavy volume.
Investors will watch for fresh corporate updates today from AMP, Challenger, and Santos, alongside annual meetings for Aurizon, Stockland, and Treasury Wine Estates. Treasury Wine’s chairman cautioned that reallocating resources to China could pose strategic risks as the company rebuilds its mainland presence.
On the policy front, RBA Assistant Governor Christopher Kent will address the CFA Society Australia Investment Conference this morning. Markets will also digest the September Labour Force Report, due at 11.30 a.m., expected to show employment growth of 20,000 and an unemployment rate near 4.3 per cent. Economists note the labour market has cooled from its earlier strength, though continued stability could bolster the case for a 25-basis-point rate cut before year-end if inflation eases further.
Bond yields were little changed overnight, with the Australian 10-year holding at 4.21 per cent, modestly above the US 10-year’s 4.03 per cent. The Australian dollar strengthened 0.4 per cent to US 65.12 cents, supported by firmer commodity prices and global risk appetite.
Commodities and currencies
In commodities, gold extended its run above US$4,200 an ounce, boosted by safe-haven demand amid trade tensions and steady US yields. Brent crude edged 0.2 per cent lower to US$62.24 a barrel, weighed by oversupply concerns even as optimism over global growth underpinned energy shares. Iron ore slipped 0.3 per cent to US$104.90 a tonne, remaining well supported by Chinese infrastructure demand but capped by uncertainty around steel output quotas.
In currency markets, the Bloomberg Dollar Spot Index weakened 0.3 per cent as investors trimmed defensive positions. The euro gained 0.3 per cent to US$1.1645, the British pound rose 0.5 per cent to US$1.3393, and the yen firmed 0.4 per cent to ¥151.26 per US dollar.
Bitcoin slipped 1.2 per cent to US$111,500 while Ether fell 3.3 per cent, marking another volatile session for digital assets.
Economic Calendar
AU:
- Employment Change Sep 11:30
- Unemployment Rate Sep 11:30
US:
- Retail Sales Advance MoM Sep 23:30
- PPI Final Demand MoM Sep 23:30
- Initial Jobless Claims Oct 23:30
This article was written by James Woods, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
