ASX 200 futures were up 46pts (+0.52%) at 8:30 am AEDT. The S&P/ASX 200 closed 66 pts (+0.75%) higher yesterday at 8,835, reclaiming more than Friday’s 58-pt decline amid reports the record US government shutdown is set to end.
Sector leaders were Information Technology (+2.36%), Materials (+1.59%) and Energy (+1.48%), while Consumer Staples (-0.42%), Real Estate (-0.14%) and Telcos (+0.03%) lagged. Tech strength was broad: Block +6.93% to $101.71, WiseTech +6.17% to $70.25, Zip +4.45% to $3.52 and Life360 +3.6% to $48.32. A 5% jump in China lithium prices spurred critical minerals gains; Pilbara Minerals rose 9%.
Banks were mixed as ANZ hit a record $37.98 (+3.21%), Westpac +1.39% to $39.52, while NAB -0.39% and CBA -0.56%.
Gold names tracked bullion higher (Capricorn +4.42%, Regis +4.04%, Evolution +3.94%); uranium rebounded (Deep Yellow +9.60%, Silex +9.56%, Bannerman +8.22%, Paladin +7.85%).
Looking ahead, Thursday’s October jobs report is expected to show about 20,000 new positions and unemployment easing to 4.4%. Rate markets are pencilling in a tiny chance of an RBA cut in December (around 3–4 basis points priced) and roughly 18 basis points of easing by June 2026.
Rally in the US on shutdown hopes
US equities rallied on progress toward ending the 40-day shutdown.
The Senate advanced a bipartisan compromise with centrist Democratic support, setting up a potential resolution by mid-week. The bill would fund government through January 30, 2026, reverse layoffs, provide retroactive pay to around 800,000 workers and schedule a December vote on extending ACA tax credits.
A data backlog is building: the delayed September jobs report should land within days, but October labour and inflation numbers may take weeks, leaving the Fed short of fresh readings before its December 10 meeting.
Even so, mega-cap tech led markets higher—Nvidia, Alphabet and Meta all rose—despite Michael Burry’s claim that hyperscalers are understating depreciation by up to US$176 billion over 2026–2028. Rates markets now price about 15bp of cuts in December and roughly 80bp of easing by end-2026.
Tech drives Europe lower
European shares ended Friday lower as worries over stretched tech valuations persisted.
Tech fell 2.1% and banks -0.9%. ITV jumped 16.6% after confirming talks to sell its media and entertainment unit to Sky for £1.6bn including debt.
- The FTSEurofirst 300 slipped 0.6% on the day and 1.1% for the week.
- London’s FTSE 100 declined 0.6% Friday, down 0.4% for the week.
Currencies
Moves were mixed against the US dollar.
- The euro rose from US$1.1529 to US$1.1589 and was near US$1.1565 at the US close.
- The Aussie lifted from US$0.6469 to US$0.6498 and was around US$0.6490 late US trade.
- The yen eased from ¥153.00 to ¥153.58 per US dollar and was near ¥153.40 at the close.
Commodities
Oil inched higher on Friday, helped by hopes Hungary can keep tapping Russian crude after a White House meeting between President Trump and Viktor Orbán.
Brent settled at US$63.63 and WTI at US$59.75, though both were still down about 2% for the week as producers ramped output.
Base metals were mixed.
- Copper slipped while aluminium ticked up.
- Gold firmed—futures to US$4,009.80 and spot near US$3,998—on a softer US dollar and shutdown jitters.
- Iron ore fell to US$103.34 a tonne, extending weekly losses on weaker Chinese steel demand and production cuts.
Looking ahead
In Australia, RBA Deputy Governor Andrew Hauser speaks; ANZ and Life360 report. In the US, Tyson Foods and Occidental Petroleum release earnings.