Morning Wrap: ASX 200 to tumble, S&P 500 slips, Soaring bond yields hit stocks
ASX 200 futures are trading 68 points lower, down 0.81%, as of 8:30 am AEDT.
In this article
ASX 200 futures are trading 68 points lower, down 0.81%, as of 8:30 am AEDT.
US stocks finished lower overnight as Treasury yields surged to their highest levels since July, driven by growing no-landing expectations and recent sticky inflation data, gold scored a fresh all-time high and China's recent rate cuts fail to lift economic outlook.
Let's dive in.
Overnight Summary
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
 S&P 500 | 5,854 | -0.18% |
Dow Jones | 42,932 | -0.80% |
NASDAQ Comp | 18,540 | +0.27% |
Russell 2000 | 2,240 | -1.60% |
Country Indices | ||
 Canada | 24,723 | -0.40% |
 China | 3,268 | +0.20% |
 Germany | 19,461 | -1.00% |
 Hong Kong | 20,478 | -1.57% |
 India | 81,151 | -0.09% |
 Japan | 38,955 | -0.07% |
 United Kingdom | 8,318 | -0.48% |
Name | Value | % Chg |
|---|---|---|
Commodities (USD) | ||
 Gold | 2,734.5 | +0.16% |
 Iron Ore | 105.23 | -0.13% |
 Copper | 4.36 | -0.56% |
 WTI Oil | 70.41 | +1.72% |
Currency | ||
 AUD/USD | 0.6658 | -0.67% |
Cryptocurrency | ||
 Bitcoin (USD) | 67,708 | -1.58% |
 Ethereum (AUD) | 4,018 | -1.45% |
Miscellaneous | ||
US 10 Yr T-bond | 4.182 | +2.68% |
VIX | 18.37 | +1.89% |
US Sectors
Sector | % Chg |
|---|---|
| Information Technology | +0.93% |
| Communication Services | -0.07% |
| Energy | -0.21% |
| Industrials | -0.35% |
| Utilities | -0.36% |
| Consumer Discretionary | -0.64% |
Sector | % Chg |
|---|---|
| Materials | -0.80% |
| Consumer Staples | -0.81% |
| Financials | -0.88% |
| Health Care | -1.19% |
| Real Estate | -2.08% |
S&P 500 SESSION CHART
S&P 500 lower, finished off worst levels (Source: TradingView)
OVERNIGHT MARKETS
Major US benchmarks finished lower but off worst levels
Today’s big story – Bond yields experienced an upswing, with the US 10-year yield up 18 bps in the last three sessions to highest level since 26-Jul. Soft/no-landing traction widely cited a driver, as well as hotter-than-expected US September CPI
Market’s path of least resistance continues to be higher on Fed easing cycle, solid Q3 earnings season, corporate buybacks, AI secular growth theme and China’s stimulus push
Start of peak Q3 earnings coming, with 112 S&P 500 companies scheduled to report this week
Latest prime broker flows show that global equities saw largest inflows in five months last week, with Financials, Tech and Industrials the preferred sectors, while Telcos, Materials and Energy were the most net sold, according to Goldman Sachs
Hedge funds have strong preference for stocks that perform well under Trump presidency, says JPMorgan (RT)
China stocks eke out small gain even as LPR cuts beat expectations; small-cap indexes best performers (BBG)
Iron ore and base metals rise after Chinese banks cut their benchmark lending rates, seen aiding the property market (BBG)
Gold surges to an all-time high, hitting its sixth record this year amid rate cuts and geopolitical tensions (FT)
STOCKS
Maersk boosts guidance for fourth time in six months amid Red Sea attacks (BBG)
Perplexity AI targets US$8bn valuation in new funding round (FT)
CENTRAL BANKS
Dallas Fed's Logan expects gradual rate cuts, continued balance sheet drawdown (RT)
Fed’s Kashkari says any surprise job market weakness could trigger rethink of rate-cut pace (RT)
POLITICS & GEOPOLITICS
Israel gives US its Lebanese ceasefire demands (AX)
EU prepares fast and hard response to potential Trump trade war if he wins the November vote (POL)
ECONOMY
China cuts key lending rates in line with upper end of Governor Pan's guidance (FT)
German producer prices fall more than expected in September, mainly due to lower energy prices (RT)
Industry ETFs
Name | Value | % Chg |
|---|---|---|
Commodities | ||
| Silver | 30.85 | +0.69% |
| Gold Miners | 43.22 | +0.16% |
| Uranium | 33.25 | -0.63% |
| Steel | 68.2029 | -0.95% |
| Lithium & Battery Tech | 42.38 | -1.12% |
| Strategic Metals | 46.22 | -1.13% |
| Copper Miners | 45.24 | -1.24% |
Industrials | ||
| Aerospace & Defense | 155.61 | +0.48% |
| Global Jets | 22.57 | 0.00% |
| Agriculture | 25.36 | -0.16% |
| Construction | 81.6849 | -1.64% |
Healthcare | ||
| Biotechnology | 143.99 | -1.32% |
Name | Value | % Chg |
|---|---|---|
Cryptocurrency | ||
| Bitcoin | 19.27 | -1.28% |
Renewables | ||
| CleanTech | 7.37 | -0.41% |
| Solar | 36.9 | -1.18% |
| Hydrogen | 22.4 | -1.37% |
Technology | ||
| Video Games/eSports | 74.04 | +0.46% |
| Cybersecurity | 31.92 | +0.13% |
| Robotics & AI | 32.06 | +0.03% |
| Cloud Computing | 20.96 | -0.05% |
| Semiconductor | 228.93 | -0.19% |
| E-commerce | 26.78 | -0.52% |
| Electric Vehicles | 22.75 | -0.52% |
| FinTech | 29.51 | -0.54% |
| Sports Betting/Gaming | 18.43 | -1.71% |
ASX TODAY
Audinate previously anticipated 'slightly' lower gross profit for FY25 (vs. FY24) but this target is now unlikely to be met, expects a return to normal order patterns and growth by FY26 (AD8)
Austal Chair Richard Spencer discloses purchase of 1m shares, purchased subject to FIRB approval (ASB)
Illuka Resources reports Q3 Zircon, Rutile and Synthetic Rutile production of 138kt vs. 115.6kt consensus (ILU)
Quarterly reporting season – PPS, AD8, DYL, ILU, LOT, IPD, NXS and more (Announcements)
WHAT TO WATCH TODAY
Rising yields – The US 10-year yield up 11 bps overnight to 4.19% compared to 3.70% when the Fed cut rates on 18 September. Markets did not really care about the initial leg up – But now its becoming increasingly hard to ignore the vertical move. The overnight move weighed on yield-sensitive pockets of the market. Real Estate (-2.08%) was the worst performing S&P 500 sector.
BROKER MOVES
Arcadium Lithium downgraded to Neutral from Buy; target remains $8.60 (CITI)
Jumbo Interactive upgraded to Buy from Neutral; target up to $14.70 from $14.25 (CITI)
Metcash downgraded to Sell from Neutral; target cut to $3.10 from $3.80 (GS)
Mineral Resources downgraded to Neutral from Buy; target remains $50 (CITI)
Polynovo initiated Neutral with $2.35 target (JPM)
REA Group upgraded to Overweight from Neutral; target up to $240 from $190 (JPM)
Ventia Services downgraded to Hold from Outperform; target remains $4.45 (CLSA)
Webjet Group initiated Hold with $0.95 target (JEF)
Key Events
Stocks trading ex-dividend:
Tue 22 Oct: Spheria Emerging Companies (SEC) – 1.47%
Wed 23 Oct: None
Thu 24 Oct: None
Fri 25 Oct: Bank of Queensland (BOQ) – 2.44%
Other ASX corporate actions today:
Dividends paid: Perenti (PRN), Reece (REH)
Earnings: Plenti Group (PLT)
Listing: None
AGMs: Magellan (MFG), Suncorp (SUN), Transurban (TCL)
Economic calendar (AEDT):
No major economic announcements.
