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The ASX is likely to start its day flat, or even slightly lower. It comes after a weak session on Wall Street as government bond yields continued their march towards multi-decade highs. Follow live.
The ASX is likely to start its day flat, or even slightly lower, after a weak session on Wall Street as government bond yields continued their march towards multi-decade highs.
The Australian dollar fell below 70 US cents after the Reserve Bank lifted interest rates to a 15-year high on Tuesday. — it normally rises after an interest rate hike. Australia's sovereign wealth fund published its latest six-monthly investment report on Monday. It published it quietly, without a press release or public announcement.
This latest report shows what stocks the fund bought and sold between December 31 and June 30, and what returns its stock holdings generated in the first half of this year. There was a steep fall in oil prices overnight as investors focused on signs of recovering crude exports from the Middle East.
However, prices are still headed for large monthly gains on lingering concern about supply disruptions during the US-Israeli war on Iran. Crude futures were "under pressure this morning on news that the Saudi’s East-West Pipeline flows have moved up," said"US/Iran negotiations are also continuing, and while seemingly far apart both are looking for an off-ramp, and as more oil flows through the Middle East the less bargaining power Iran will have.
" Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, according to trade sources and shipping data, improving the outlook for oil exports from the Middle East. Crude oil exports from Middle East producers have rebounded in September to 16.3 million barrels per day, the highest since the US-Israeli war on Iran started in late February, data from Kpler showed on Monday.
US President Donald Trump said he has offered Iran nothing to end the war, rejecting media reports that cited US officials saying he was willing to ease sanctions and release frozen funds for "concrete" steps regarding Iran's nuclear program. Welcome to the ABC's finance blog! I'll be guiding you through the latest market action for the next few hours.
Weaker Aussie dollar The Australian dollar fell below 70 US cents to its lowest level in two months, a slightly unexpected outcome considering the Reserve Bank lifted interest rates to a 15-year high yesterday. That's something that would ordinarily boost the local currency given the RBA said in its post-meeting statement it would consider "increasing the cash rate target further if needed".
But this tough talk was "not hawkish enough to lift already aggressive market pricing for follow‑up hikes" according to Commonwealth Bank analysts, explaining the fall in the Aussie dollar. Meanwhile, Wall Street finished trading slightly lower as government borrowing costs, as measured by bond yields, continued their march towards fresh multi-decade highs. The Dow Jones Industrial Average fell 0.3% to 51,350 points, the S&P 500 lost 0.2% to 7,671 points and the Nasdaq Composite slipped 0.1%, to 26,798 points.
US stocks pared declines, however, as bond yields eased from their earlier highs and shorter-duration yields were down on the day. That was after oil prices retreated on signs of a recovery in exports from the Middle East and comments from Federal Reserve Bank of New York president John WilliamsMr Williams said the US central bank has time to weigh the data before deciding when to hike interest rates again.
Expectations for a rate hike of at least 0.25 percentage points from the Fed at its October meeting declined to 51.5%, according to CME FedWatch in the wake of his comments, from nearly 70% earlier in the session.
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