United States
Wall Street kicked off the week on the front foot, with a broad-based rally led by technology and financials as earnings season gathered pace and the tone on US-China trade cooled. The S&P 500 rose 1.1% to 6,735.60, matching a 1.1% gain for the Dow Jones Industrial Average, while the Nasdaq 100 climbed 1.3%. Small caps outperformed, with the Russell 2000 up 1.9%, suggesting risk appetite is broadening beyond the megacaps. Bond markets were supportive: the US 10-year Treasury yield eased three basis points to 3.98%, helping equities extend their best two-day run since June.
Earnings continue to steady the ship. Roughly 85% of S&P 500 companies that have reported so far have beaten profit estimates, reinforcing the view that corporate America remains resilient. Apple was a standout, hitting its first record high of 2025 after an upgrade to ‘buy’ on signs of firmer iPhone demand. The tech megacap cohort added 1.6%, and the Philadelphia Semiconductor Index briefly breached an all-time high intraday.
Attention now shifts to heavyweights reporting through the week, including Tesla, IBM, Netflix, Procter & Gamble and Coca-Cola, for read-throughs on consumer demand, AI spending and capital discipline. The near-term macro focal point is Friday’s delayed September CPI print, which lands just ahead of the Federal Reserve’s late-October meeting. For now, the combination of better-than-feared earnings, a modest pullback in yields and a less confrontational trade backdrop has investors leaning into risk.
Europe
European equities joined the upswing. The Stoxx 600 advanced 1.0% as risk appetite improved following friendlier US-China headlines and ebbing concerns around regional lenders. Sector leadership was decisive: technology posted its biggest daily rise in over a month, while defence stocks rallied amid elevated geopolitical tensions. Industrials outperformed, helped by strong order news at Sandvik and supportive headlines for Rheinmetall, Saab and Renk.
There were notable idiosyncratic moves. Kering jumped after agreeing to sell its beauty division to L’Oréal in a €4.7 billion deal, lifting parts of the luxury complex. By contrast, BNP Paribas slumped after a court ruling linked to historical activities in Sudan raised the spectre of costly settlements, weighing on the French bank and the wider financials space. Utilities eked out gains to a fresh 2008-era high, extending a multi-session winning streak, while basic resources climbed as copper firmed on hopes that global trade frictions may ease.
The day’s breadth was constructive: banks finished broadly in line with the index despite the BNP drag, and consumer discretionary was supported by LVMH and Kering. Elsewhere, real estate edged higher but lagged the broader tape, and energy was mixed as crude prices held near recent lows.
Australia
Local equities are set for a positive open, taking their cue from the US and Europe. S&P/ASX 200 futures were up 0.5% at 9,089 as of 6:59 a.m. Sydney time, implying an early advance for the cash market. The ADR lead-ins were broadly supportive: the Bank of New York Australia ADR Index rose 2.1%; BHP’s ADRs gained 2.2% (trading at a small premium to Sydney’s last close), while Rio Tinto’s ADRs were higher as basic resources rallied offshore.
Rates are a watch-item into the local session. Australian government bond yields firmed on Monday, with the three-year up 5.4 bps to 3.37% and the ten-year up 5.4 bps to 4.15%, even as US yields slipped. The firmer local curve arrives ahead of a speech by RBA Assistant Governor Brad Jones at 10:45 a.m., which markets will parse for colour on financial conditions and derivatives market functioning.
Critical minerals will likely dominate sector chatter after the US and Australia inked a minerals cooperation agreement. Rare earths names and linked value chains are in focus following fresh commitments to gallium and rare earth processing projects. In company updates, Yancoal reported third-quarter attributable saleable output of 9.3Mt (slightly lower quarter-on-quarter). On the broker front, there were several rating changes across the board, including upgrades for Beach Energy and positive initiations for Mineral Resources and REA Group, while Zip was cut to ‘hold’. Super Retail also made headlines, appointing BCF’s Paul Bradshaw as CEO effective 1 November.
Today’s domestic diary is reasonably full: quarterly updates are due from BHP, South32 and HUB24; AGMs are scheduled for Bendigo and Adelaide Bank, Cleanaway, IDP Education and Judo Capital. With US earnings momentum constructive and futures pointing up, the local tape will be balancing external optimism with sector-specific catalysts at home, particularly across resources and financials.
Commodities and currencies
Gold extended its run, touching a fresh record intraday as buyers stepped in despite a softer tone in global trade tensions. Spot gold was last up around 3% near USD 4,38k/oz. The persistence of safe-haven demand, alongside a dip in US yields, continues to underpin bullion’s breakout.
Energy was softer. Brent crude eased 0.6% to USD 60.95/bbl, while West Texas Intermediate slipped 0.1% to USD 57.48/bbl. The drift lower in oil reflects a mix of supply comfort and ebbing immediate geopolitical risk premia, though price action remains sensitive to headlines. Iron ore edged down 0.1% to USD 103.80/tonne.
In FX, the US dollar was marginally firmer on a trade-weighted basis. The euro dipped 0.1% to USD 1.1640. The Australian dollar outperformed modestly, up 0.2% to USD 0.6514, while the New Zealand dollar rose 0.3% to USD 0.5745. The AUD’s resilience reflects the positive risk tone and supportive commodity linkage via bulk resources, even as iron ore treaded water. In digital assets, bitcoin advanced 1.7% to roughly USD 110.8k.
Economic Calendar
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This article was written by James Woods, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
