Morning Wrap: ASX set for muted open as Wall Street softens, crypto rout deepens

ASX 200 futures are up 5pts (+0.06%) as of 8:30 am AEDT.

In a nutshell:

• Wall Street’s major indexes edged lower on Monday as rising Treasury yields weighed on sentiment and investors digested fresh data showing a further slowdown in U.S. manufacturing activity.

• Cryptocurrencies were hit even harder. Bitcoin, Ether, Solana and XRP all slumped between 5% and 10% in a brutal sell-off. Bitcoin at one stage tumbled below US$85,000, giving up roughly a third of its value over the past two months.

• All eyes now turn to Fed Chair Jerome Powell, who is set to speak after the U.S. close (12 p.m. Sydney time). Markets will be watching closely for any signal that the Fed remains on course to deliver a rate cut in December.

Let's dive in.

S&P 500 SESSION CHART

The S&P 500 looked like it was going to end flat at one stage, but selling pressure resumed later in the session (Source: TradingView)

OVERNIGHT MARKETS

• US equities finished lower in Monday trading, ending not far from worst levels. S&P broke a streak of five straight gains.

• Treasuries came under pressure with curve bear steepening; yields were up ~8-9 bp at the long end.

• Dollar index was little changed.

• Gold finished up 0.5%.

• Bitcoin futures were down 5.8%, though came off worst levels.

• WTI crude settled up 1.3%.

STOCKS

• Nvidia bought $2B of Synopsys stock as part of a strategic partnership to speed up computing and AI engineering solutions (CNBC)

• BHP reportedly offered £40 billion in its unsuccessful takeover bid for Anglo American (Yahoo!)

• Barrick Mining considering IPO for a subsidiary holding its North American gold assets (BNN Bloomberg)

• Amazon's AI chatbot, Rufus, saw a surge of adoption on Black Friday, helping drive sales (TechCrunch)

• Airbus shares fell Monday on reports of new quality issue on dozens of A320 aircraft (CNBC)

GEOPOLITICS & TRADE

• U.S. and UK strike zero-tariff deal on pharmaceuticals and medical technology (CNBC)

• U.S. pressed the EU for more “balanced” tech regulation, tying the request to possible cuts in U.S. tariffs on European steel and aluminum (BNN Bloomberg)

FEDERAL RESERVE

• If Hassett becomes Fed chair, he will have the closest ties to a sitting president of any appointee in modern times (Axios)

• BofA now expects December Fed cut, along with two more in 2026 (Reuters)

• Broadening Fed dissents could risk weakening the bank's policy message (Reuters)

• BoE's Greene sees weaker jobs, consumption as key to any rate cut vote (Reuters)

ECONOMY

• Fewer global firms flagged price increases in Q3, as clearer U.S. trade conditions and competitive pressures led companies to hold back on hikes to avoid losing sales (BNN Bloomberg)

• Adobe Analytics projects a 6.3% annual increase in Cyber Monday spending (Reuters)

ASX TODAY

• James Hardie (JHX): Chair Nigel Stein bought 27,000 shares (~$811k), lifting his beneficial holding to 38,000 shares.

• Corporate Travel Management (CTD): CEO Jamie Pherous plans to steer the company through its overcharging scandal (The Australian).

• Woolworths Group (WOW): Company acknowledges and plans to defend Federal Court class action relating to alleged employee underpayments.

BROKER MOVES

• The Lottery Corp (TLC) upgraded to outperform from hold at CLSA; target decreased, however, to $5.90 from $6

• Mirvac (MGR) downgraded to underperform from buy at BofA; target cut to $2.15 from $2.45

• Metcash (MTS) upgraded to buy from neutral at Jarden; target decreased, however, to $3.80 from $4

• NextDC (NXT) upgraded to buy from accumulate at Morgans; target remains $19

Stocks trading ex-dividend:

• 2 December: Desane Group (DGH) – $0.02; 

• 3 December: Fisher & Paykel Healthcare (FPH) – $0.165

Other ASX corporate actions today: 

• Dividends paid: No companies scheduled to pay today; Wesfarmers will pay its dividend on 4 December

• Listing: 2 December: Black Horse Mining, 4 December: 6K Additive; Exulant Mining, 5 December: Saluda Medicalr

• Earnings: None of note

• AGMs: 5 December: Premier Investments (PMV)

Economic calendar (AEDT):

• 11:30am AEDT - Building permits, current accounts and housing approvals data released by the ABS

• 12pm AEDT - Fed Chair Jerome Powell to deliver remarks at George P. Shultz Memorial Lecture Series. You'll be able to watch it LIVE here.