ASX 200 futures were down 27 points (-0.30%) at 8:30 am AEST. The benchmark closed 21 points lower (-0.24%) at 8,849 yesterday, with Information Technology (+0.99%), Health Care (+0.56%) and Materials (+0.18%) providing support, while Energy (-2.25%), Financials (-1.00%) and Utilities (-0.76%) weighed.
The local market tracked a mixed Wall Street lead, with energy stocks pressured after OPEC+ confirmed an October production increase of 137,000 barrels per day. Woodside fell 2.73% to A$24.98, Viva Energy dropped 1.94% to A$2.02, Beach Energy lost 1.66% to A$1.18 and Santos slipped 1.15% to A$7.71.
Stock-specific moves included DroneShield (+5.28%) on ASX 200 inclusion, Life360 (+6.17%) to a record high, and Boss Energy (+6.09%) rebounding. Mayne Pharma slumped 14.77% to A$4.50 on concerns its US$672 million takeover by Cosette Pharmaceuticals could face government intervention.
Today brings September’s Westpac Consumer Confidence Index. August’s reading rose 5.7% to 98.5, the highest since February 2022, supported by RBA rate cuts and easing cost pressures. Economists expect a further lift to 99.5, with optimism underpinned by solid Q2 GDP growth and November rate cut speculation.
Australian interest rate markets currently price 20bp of a 25bp cut in November, and an additional cut in May 2026.
Wall Street gains on rate cut hopes
US equities advanced overnight as soft labour market data and AI enthusiasm boosted sentiment. The 30-year Treasury yield fell 7bp to 4.69%, its lowest in four-and-a-half months, raising expectations of a 50bp cut at the Fed’s September meeting.
Broadcom rose 3.21% to US$345.65, adding to Friday’s 9.4% gain, while Nvidia lifted 0.77% to US$168.31. Tesla eased 1.27% to US$346.40 as US EV market share slipped to 38% in August despite a 14% sector-wide sales jump.
Europe: political shifts and steady markets
European equities closed firmer despite political turbulence in France. The CAC 40 added 0.8% after Prime Minister Francois Bayrou lost a no-confidence vote, unseating France’s fifth leader in three years. Investors remained calm, with attention turning to upcoming credit rating reviews. France’s 30-year bond yield fell to 4.336% from earlier September highs of 4.523%.
Elsewhere, the continent-wide FTSEurofirst 300 rose 0.5%, supported by strength in retail stocks (+1.7%). London’s FTSE 100 edged 0.1% higher as gains in consumer-facing sectors offset weakness in energy shares.
Currencies: dollar weakens broadly
The US dollar eased against major peers as lower Treasury yields and expectations of deeper Fed cuts pressured the greenback.
- The euro firmed to US$1.1760 from US$1.1706.
- The Australian dollar lifted from US65.65 cents to near US65.90 cents at the close.
- The Japanese yen strengthened to JPY147.50 per US dollar, up from JPY148.15, reflecting safe-haven demand amid US labour market uncertainty.
Commodities: gold hits new record
Commodity markets were broadly stronger.
- Brent crude added 0.8% to US$66.02 a barrel.
- WTI rose 0.6% to US$62.26 as investors weighed OPEC+’s modest production increase against risks of further sanctions on Russian crude.
Base metals firmed, with copper futures up 0.2% on improved Chinese demand prospects and aluminium gaining 0.6%.
Gold extended its rally, settling 0.7% higher at a record US$3,677.40 an ounce, underpinned by softer US data and growing conviction of a September Fed cut. Spot gold traded near US$3,636. Iron ore rose 0.4% to US$104.93 per tonne, supported by reduced shipments from a key supplier and resilient Chinese steel exports.