ASX 200 futures were up 16 points (0.18%) at 8:30 am AEDT.
The S&P/ASX 200 closed 38.5 points lower, down 0.45%, as expectations for interest rate cuts evaporated and the likelihood of further rate hikes strengthened. The shift delivered a double blow to the local market, with rate-sensitive sectors bearing the brunt of the sell-off.
Mixed results on Wall Street
US markets finished mixed on Tuesday as investors positioned for a potentially hawkish tone from the Federal Reserve, even if a rate cut is delivered this week. Equities initially gained after stronger-than-expected October job openings data, but momentum faded.
Nvidia eased 0.3% after President Donald Trump signalled he would allow the company to export H200 AI chips to China with a 25% fee, while reports suggested Beijing may restrict access to those chips. Exxon Mobil rose 2% on updated corporate plans through 2030. JPMorgan tumbled 4.7% after flagging higher-than-expected 2026 expenses. AutoZone sank 7.2% on weaker quarterly results.
At the close:
- Dow Jones: –179 points (–0.4%)
- S&P 500: –0.1%
- Nasdaq: +30 points (+0.1%)
Europe ends flat
European markets were broadly flat ahead of the Fed’s policy decision.
Luxury stocks weighed on the major indices after Google announced plans for AI-enabled glasses launching in 2026 in partnership with Warby Parker, sending EssilorLuxottica down 5.6%, Kering down 2% and LVMH down 1.4%. The luxury sector fell 1.8% overall.
Insurers were the strongest performers, up 1.2%, while banks gained 0.5%.
- FTSEurofirst 300: –0.1%
- FTSE 100: marginally lower
Currencies
Currency movements were mixed against the US dollar.
- Euro: fell from US$1.1657 to US$1.1616, trading near US$1.1625 at the close
- Aussie dollar: rose from US66.32 cents to US66.53 cents, settling near US66.40 cents
- Japanese yen: weakened from JPY155.84 to JPY156.95, near JPY156.90 at the US close
Commodities
Oil
Global oil prices fell about 1% as markets monitored Ukraine peace talks, ample supply concerns and the Fed’s upcoming decision.
- Brent: –US55c (–0.9%) to US$61.94/bbl
- WTI (Nymex): –US63c (–1.1%) to US$58.25/bbl
Base metals
Copper slid 2.3% on profit-taking and demand concerns out of China. Aluminium dropped 1.4%.
Gold futures gained US$18.50 (+0.4%) to US$4,236.20/oz on optimism ahead of the Fed’s decision. Spot gold traded near US$4,211/oz.
Iron ore
Futures dipped US13c (–0.1%) to US$106.29/t as Guinea’s Simandou project shipped its first ore, raising expectations of increased supply amid weakening Chinese steel demand.
Looking Ahead
- Australia: James Hardie features at the Bernstein Industrials Forum
- China: inflation data due
- Canada: Bank of Canada interest rate decision
- United States: FOMC policy announcement; employment cost index; earnings from Adobe and Oracle