Morning Wrap: ASX 200 to rise, S&P 500 gains for an 8th day

Major US benchmarks are running hot, oil falls to levels not seen since July, the US 10-year yield drops to 4.5%, Robinhood shares tumble as trading activity winds down and German inflation drops to a 27-month low.

Let's dive in.

S&P 500 SESSION CHART

S&P 500 edges higher in a relatively uneventful session (Source: TradingView)

MARKETS

• S&P 500 finished higher, recovering from an early session low of -0.43%

• S&P 500 up for 8 consecutive sessions, longest since October 2021

• Nasdaq up for a ninth straight day, longest streak since November 2021

• S&P 500 VIX Index down for 8 consecutive sessions to a near 2-month low

• US 10-year yield down 43 bps since the beginning of November to 4.50%

• Brent crude down ~2%, below US$80 a barrel for the first time since July 

• Market remains in a sweet spot – Normalising from oversold conditions with yields, oil and VIX all down

• Market pricing in ~92 bp of Fed rate cuts in 2024 (Bloomberg)

STOCKS

• Automakers slowing investment in EV factories amid weakening demand (NY Times)

• UBS launches first AT1 bonds since Credit Suisse takeover wiped out $17bn (FT)

• Upstart tumbles more than 27% after missing Q3 earnings estimates (CNBC)

• Occidental Petroleum clumps after Q3 earnings tops expectations (CNBC)

• Roblox beats bookings estimates on higher in-game spending (Reuters)

• Robinhood shares dive on Q3 earnings miss, muted trading activity (Reuters)

• New UAW contracts further strain economics of making and selling EVs (Bloomberg)

• FDA approves Eli Lilly's obesity drug tirzepatide (CNBC)

CENTRAL BANKS

• Fed officials flag tighter financial conditions (Bloomberg)

• Central bankers at odds over how to respond to a possible jump in oil prices (FT)

• BOJ Governor Ueda hints chance of exit from ultra-loose policy (Reuters)

• Bundesbank chief Nagel says ECB must remain vigilant (Bloomberg)

• ECB's Kazaks says central bank can cut rates when inflation is defeated (Bloomberg)

ECONOMY

• German inflation eases to 27-month low in October (Reuters)

• Japan manufacturer sentiment rises for first time since August (Reuters)

• PBOC Governor Pan says monetary policy will remain prudent, confident of meeting 2023 growth target (Reuters)

• China oil demand weakens as refiner margins shrink (Bloomberg)

• Global asset managers talk up China, championing long-term opportunities (Reuters)

There's no cool insights today. I'm headed to Sydney this morning!

ASX corporate actions occurring today:

• Trading ex-div: Westpac (WBC) – $0.72, Acorn Capital (ACQ) – $0.04, Waterco (WAT) – $0.05 

• Dividends paid: Dexus Industria REIT (DXI) – $0.04, Dexus Convenience Retail REIT (DXC) – $0.05

• Listing: None 

Economic calendar (AEDT):

• 12:30 pm: China Inflation Rate

• 6:00 am: Fed Chair Powell Speech