Markets Overview

  • ASX SPI 200 futures down 0.2% to 8,793.00
  • S&P 500 little changed at 6,600.35
  • Dow Average up 0.6% to 46,018.32
  • Aussie down 0.5% to 0.6652 per US$
  • US 10-year yield rose 6.1bps to 4.0872%
  • Australia 3-year bond yield fell 0.5 bps to 3.41%
  • Australia 10-year bond yield rose 0.1 bps to 4.22%
  • Gold spot down 0.8% to $3,659.56
  • Brent futures down 0.8% to $67.90/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 147-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 84-Day Bills
  • 11:30: (AU) Aug. Employment Change, est. 21,000, prior 24,500
  • 11:30: (AU) Aug. Unemployment Rate, est. 4.2%, prior 4.2%
  • 11:30: (AU) Aug. Participation Rate, est. 67.0%, prior 67.0%
  • 11:30: (AU) Aug. Full Time Employment Change, prior 60,500
  • 11:30: (AU) Aug. Part Time Employment Change, prior -35,900

US equity-index futures advanced in early Asian trading, in a sign of renewed risk sentiment following the Federal Reserve’s interest-rate cut.

Contracts for the S&P 500 and the Nasdaq 100 advanced 0.4% in early trading Thursday. The moves followed a minor rally in post-market trading for some of the largest US equity exchange traded funds. The SPDR S&P 500 ETF climbed 0.1% and Invesco’s QQQ ETF gained in after-market trading, after minor declines in the main session. Contracts for Asian stocks were mixed.

Treasuries fell across the curve, sending the policy-sensitive two-year yield five basis points higher, while an index of the dollar strengthened.

The Fed had struck an initial cautious tone, acknowledging labor market cooling while stressing a data-dependent approach amid inflation risks. The Federal Open Market Committee voted 11-1 to cut rates to 4%–4.25%. Powell underscored the tension between jobs and inflation, saying policy is now a “meeting-by-meeting situation,” and that “there’s no risk-free path” ahead.

“Powell’s tone and words in his press conference do indicate this was more a defensive move to avoid more weakness in the labor market,” said Steve Wyett at BOK Financial. The muted market response is a sign the cut “was widely expected,” he said.

Fed policymakers now see two additional quarter-point cuts this year, one more than was projected in June. They foresee one quarter-point cut in 2026 and one in 2027 and also slightly upgraded their outlook for both growth and inflation in 2026.

The decline in Treasuries signaled disappointment among bond traders who had bet on a more aggressive series of Fed cuts.

“The dot plot now implies two more cuts this year, but Powell downplayed its significance,” given the risk of further jobs weakness, said Dan Siluk at Janus Henderson Investors. “The messaging remains nuanced and far from a full pivot,” he said.

Meanwhile, China’s cyberspace regulator instructed companies including Alibaba Group Holding Ltd. to halt orders for a Nvidia Corp. semiconductor that can be used for AI applications.

Chinese banks have loaded up on government debt at the fastest pace since 2019. In each of the past two months, commercial banks such as China Construction Bank Corp. raised their overall holdings by more than 20% year-over-year, according to central bank data.

Oil prices fell Wednesday after a three-session advance as traders assessed fresh US stockpile data and the Fed’s rate cut. Gold was steady after a Wednesday drop.