ASX 200 futures are down 21 points (-0.25%) as of 8:30 am AEDT, pointing to a softer open.
The ASX 200 fell 21 points (-0.25%) yesterday to close at 8,447 as trade remained subdued following Tuesday’s sharp sell-off, with the index moving in a narrow 40-point (0.48%) range. Financials (-1.19%), Utilities (-0.52%) and IT (-0.50%) were the main drags, while Energy (+0.86%), Materials (+0.67%) and Real Estate (+0.67%) outperformed.
Banks continued to weigh on the market, with the Financials sector now down 7.95% for the month and on track for its weakest monthly performance since June 2022’s 11.87% decline. ANZ lost 2.04% to $35.12, Macquarie fell 1.44% to $189.90, Westpac declined 1.40% to $37.34, CBA slipped 1.25% to $151.20 and NAB eased 0.69% to $40.32.
Flows rotated toward the major miners and energy names. Fortescue advanced 1.55% to $20.36, Rio Tinto added 0.15% to $129.27 and BHP edged 0.12% higher to $40.95. In energy, Woodside rose 1.19% to $26.27, Santos gained 0.75% to $6.68 and Beach Energy firmed 0.39% to $1.27.
Corporate news was mixed. DroneShield dropped 19.59% to $1.97 after its US CEO, Matt McCrann, resigned, following recent disclosures that CEO Oleg Vornik had sold almost all his shares. Webjet surged 17.22% to $0.88 after Helloworld launched a takeover bid at $0.90 per share. In rates, the Australian interest rate market is starting the day pricing in around 3 basis points of easing at the RBA’s December meeting and about 15 basis points of cuts by May 2026.
Nvidia expectations drive Wall St higher
US equity markets finished higher ahead of Nvidia’s earnings, despite a weaker update from Target and a further paring back of expectations for a December Federal Reserve rate cut. The implied probability of a 25-basis-point cut in December has fallen from over 90% prior to the late-October FOMC meeting to about 27%, with investors now expecting the Fed to remain on hold amid reduced data visibility.
The shift reflects the impact of the US government’s 43-day shutdown, which led to the cancellation of the October jobs report and delayed the release of November nonfarm payrolls until 16 December—three days after the 9–10 December FOMC meeting—leaving policymakers with less timely labour market data.
In corporate news, Target shares fell 2.77% to US$68.08 after the retailer reported a third-quarter sales decline and trimmed the top end of its full-year earnings guidance. Nvidia, by contrast, delivered another strong quarter, with fiscal 3Q26 revenue of US$57.01 billion beating expectations of US$54.92 billion, up 22% quarter-on-quarter and 62% year-on-year. Adjusted EPS came in at US$1.30 versus US$1.25 expected, an 18% quarter-on-quarter rise.
Data Centre revenue reached US$51.2 billion, up 25% quarter-on-quarter and 66% year-on-year, supported by hyperscaler demand for Hopper and early Blackwell ramp-up. For 4Q, Nvidia guided revenue to US$65.0 billion (±2%), above the Street’s US$61.7 billion estimate. CEO Jensen Huang said Blackwell sales were “off the charts” and cloud GPUs were effectively sold out. Nvidia’s share price jumped 6.15% in after-hours trade to US$198.06, with investors eyeing a potential retest of the US$212.29 record high if support in the high US$170s holds.
Looking ahead in the US, the September non-farm payrolls report, due tomorrow morning AEDT, is expected to show a 50,000 increase in jobs with the unemployment rate steady at 4.3%.
Europe’s markets mixed
European sharemarkets were mixed on Wednesday as investors awaited Nvidia’s US earnings report and assessed the global interest rate outlook. Media stocks led sector gains, rising 2%, while utilities fell 1.4%.
- The pan-European FTSEurofirst 300 index finished flat for the session.
- In London, the FTSE 100 declined 0.5%.
- On the data front, UK annual consumer price inflation eased to 3.6% in October from 3.8% in September, slightly above market expectations of 3.5% but still at its joint-lowest level since January 2024. The softer inflation print keeps attention on the Bank of England’s timing for any future policy easing.
Currencies
The US dollar strengthened in European and US trade, pushing major currencies lower.
- The euro slipped from US$1.1598 to US$1.1519 and was trading near US$1.1525 at the US close.
- The Australian dollar eased from US$0.6496 to US$0.6451 and was around US$0.6465 late in New York dealings.
- The Japanese yen weakened from 155.26 per US dollar to 157.03 and was near JPY157.00 at the US close as markets continued to price wide yield differentials between the US and Japan.
Commodities
Oil prices fell on Wednesday after a US government report showed rising inventories of refined products, easing concerns about near-term fuel supply, while investors monitored stalled diplomatic efforts to end Russia’s war in Ukraine.
- US crude inventories declined by 3.4 million barrels last week, contrary to expectations for a larger build.
- Brent crude fell US$1.38 or 2.1% to US$63.51 a barrel.
- US Nymex crude lost US$1.30 or 2.1% to US$59.44 a barrel.
Base metals were firmer.
- Copper futures were up 0.9% on ongoing supply concerns.
- Aluminium futures gained 1.1%.
- Gold futures rose US$16.30 or 0.4% to US$4,082.80 an ounce after the release of minutes from the latest US Federal Reserve meeting, while spot gold traded near US$4,073 at the US close as traders looked to upcoming economic data for further clues on the US rates path.
- Iron ore futures dipped US$0.05, or less than 0.1%, to US$104.26 a tonne, with losses contained by firm Chinese demand and lower domestic supply.
Looking ahead
In Australia today, RBA officials Sarah Hunter and Ellis Connolly are scheduled to speak, and around 40 ASX-listed companies will hold annual general meetings.
China will announce its loan prime rates.
In the US, data on nonfarm payrolls, weekly jobless claims, existing home sales and regional manufacturing activity are all due, while Walmart will release earnings.