ASX 200 futures were up 19pts (+0.21%) at 8:30am AEDT. The ASX200 fell 81pts (-0.91%) to 8,813 yesterday, hitting an intraday five-week low of 8,801.9 as selling accelerated ahead of the RBA Board meeting.
The RBA kept the cash rate at 3.60%, noting inflation has eased from its 2022 peak but has ticked higher; it lifted its trimmed-mean forecast to 3.2% for Dec-2025 and into 1H26, and revised 2025 growth and unemployment to 2.0% (from 1.7%) and 4.4% (from 4.3%).
Market pricing implies ~3bp of easing for December and a cash rate path falling to ~3.30% in 2H25, leaving scope for further cuts if warranted. Sector moves: Utilities (-2.78%), Materials (-1.83%) and Real Estate (-1.21%) weighed; Health Care (+0.04%), Financials (-0.40%) and IT (-0.59%) outperformed.
Miners weakened with iron ore in Asia down 1.4% to US$103.60 (FMG -2.71% to $20.49; Rio -2.59% to $129.40; BHP -1.91% to $42.54); banks were mixed (CBA -0.86% to $174.11; ANZ -0.35% to $36.83; NAB -0.50% to $43.79; Westpac +1.51% to $40.45).
Wall Street turns sharply lower on valuation and policy worries
US equities fell as risk appetite deteriorated, a move that began in Asia. Drivers included stretched valuations after a strong run from April lows, CEO warnings of an overdue correction, fading odds of a December Fed cut, high-profile short bets (including commentary around Nvidia), a record-length US government shutdown, and investor demands for tangible AI returns amid heavy capex.
The Dow slipping 251 points (-0.5%), the S&P 500 down 1.2% and the Nasdaq off 2.0%, as chipmakers led the retreat (Philadelphia SOX -4%).
Palantir slumped 8% despite an upbeat Q4 revenue outlook, while Oracle, Nvidia and AMD fell 3.7%–4%; Uber slid 5.1% on softer operating profit and Norwegian Cruise Line dived 15.3% after a revenue miss.
Attention now turns to a packed diary—McDonald’s, Qualcomm, Albemarle and Robinhood report—while the ADP print takes on extra significance following September’s 32k private-job decline and in the absence of Friday’s NFP.
In rates, futures now price about 17bp of easing in December and roughly 82bp of cuts by December 2026.
European equities echo global sell-off amid mixed earnings
European stocks tracked the global risk-off tone.
The FTSEurofirst 300 dipped 0.2% as basic resources fell ~2% on softer copper and tech shed ~1%; Telefonica dropped 13.1% after guiding to halve its dividend next year.
In the UK, the FTSE 100 edged up 0.1%, modestly outperforming the continent.
Earnings were mixed across the region, reinforcing a cautious tone. Sector leadership remained defensive while cyclicals underperformed on growth concerns and stronger USD headwinds.
Dollar extends gains as risk sentiment weakens
FX was mixed against the US dollar.
- EUR eased from US$1.1533 to ~US$1.1480 into the US close.
- AUD slipped from US$0.6530 to ~US$0.6490, reflecting softer risk sentiment and commodity prices.
- JPY firmed, with USD/JPY moving from 154.06 to ~153.60 into the close.
Dollar strength mirrored higher relative US yields and safe-haven demand.
Commodities tumble as demand fears resurface
Crude declined as weak manufacturing prints and a firmer USD hit demand expectations; OPEC+ pausing Q1 output hikes also hinted at supply-glut concerns.
- Brent fell US$0.45 (-0.7%) to US$64.44/bbl;
- WTI -US$0.49 (-0.8%) to US$60.56/bbl.
- Base metals retreated, led by copper (-2.4%) and aluminium (-2.6%).
- Gold futures fell US$53.50 (-1.3%) to US$3,960.50/oz, with spot near US$3,935 into the US close.
- Iron ore futures dropped US$1.32 (-1.2%) to US$104.52/t, extending a three-session slide on China steel demand concerns.
Looking ahead
Australia’s S&P Global Services PMI is due; Goodman Group issues an operational update; Wesfarmers trades ex-div; China services PMI (RatingDog) due.
In the US, ADP private payrolls and ISM services index are released alongside earnings from McDonald’s, Qualcomm, Albemarle and Robinhood.