ASX 200 futures were up 41 points or 0.46% at 8:30 am AEST, pointing to a positive open. Yesterday, the benchmark closed 11 points or 0.18% lower at 8,853. Early weakness saw the index dip 70 points to 8,794 before buyers again defended the 8,800 level, sparking a 60-point rebound and the first close above 8,850 in more than a week.
Sector moves were mixed. Health Care, Materials, and Telcos were the main drags, while Energy, Consumer Discretionary, and Utilities outperformed. CSL slid 1.61% to A$204.48, while gold miners gave back recent gains, with Evolution Mining down 5.25% to A$9.38. Lithium names surged on expectations of mine restarts in China: Vulcan Energy jumped 11.73% to A$4.19, Pilbara Mining rose 9.09% to A$2.16, and IGO advanced 6.68% to A$4.63.
Attention now turns to Thursday’s Labour Force report, where consensus expects 20,000 jobs added and unemployment steady at 4.2%. Interest rate markets are pricing in a 25 basis point cut by November, bringing the cash rate to 3.35%.
Wall Street extends record highs; Tesla leads individual stock action
US equities extended gains with fresh record highs for both the Nasdaq 100 and S&P 500 ahead of the Federal Reserve’s policy decision. The Fed is widely expected to cut the funds rate by 25 basis points to 4.00–4.25%, citing labour market softening. Dissent from Stephen Miran, and possibly Waller and Bowman, is anticipated in favour of a larger cut.
Tesla shares climbed 3.56% to US$410.04, their highest in eight months, after Elon Musk disclosed a near US$1 billion share purchase. Despite recent momentum, Tesla remains below its broader “Magnificent Seven” peers. Later tonight, retail sales data for August will provide fresh signals on consumer demand.
European markets firm on luxury and defence
Continental European markets closed higher, lifted by strength in luxury and defence stocks. LVMH and L’Oreal rose 2.7% and 1.9% respectively, while Kering advanced 5.8%. Brunello Cucinelli gained 5.6% after J.P. Morgan initiated with an “overweight” rating. The aerospace and defence index hit another record, up 1.7%. The FTSEurofirst 300 climbed 0.4%, while London’s FTSE 100 slipped 0.1%.
Currency markets
- The Euro strengthened from US$1.1715 to US$1.1773, closing near US$1.1760.
- The Australian dollar edged up from US66.47 cents to US66.74 cents.
- The yen also firmed, trading around ¥147.40 against the US dollar.
Commodities
Oil prices advanced as Ukrainian drone attacks on Russian refineries and calls from US President Donald Trump for NATO nations to curb Russian oil imports drove supply concerns.
- Brent crude settled 0.7% higher at US$67.44 a barrel.
- WTI rose 1% to US$63.30.
Base metals gained, with copper up 1.5% and aluminium adding 0.3%. Gold futures closed at a record US$3,719 an ounce, supported by a weaker US dollar and lower Treasury yields. Iron ore slipped 0.1% to US$105.31 a tonne, weighed by ongoing weakness in China’s property sector.
Looking ahead
In Australia, Reserve Bank of Australia (RBA) Assistant Governor (Economic) Sarah Hunter is due to speak, while New Hope will release earnings and Qantas shares trade ex-dividend. In the United States, the Federal Open Market Committee (FOMC) begins a two-day policy meeting.
Data on retail sales, import and export prices, industrial production and homebuilder sentiment are also scheduled.