FPG Overnight Headlines 03/11/2022

Overnight headlines 

Australian stocks are expected to start off lower. As a result of dissatisfaction over Federal Reserve chairman Jerome Powell’s lack of clarity over the rate outlook, shares in New York oscillated and looked destined to close significantly lower. 

When Powell informed reporters at the start of his press conference that the time to reduce rate rises may come “as soon as the next meeting or the one after that,” the market initially responded favourably to the Fed’s most recent policy statement. 

Powell later stated during the press conference that it was “extremely premature” to think about stopping rate rises. 

As of this morning, ASX futures were down 113 points, or 1.62 percent, to 6876. Losses quickly fell to fewer than 20 points when the Fed message was made public. 

• Dow dropped by 1.6% on Wall Street. S&P -2.5% Nasdaq -3.4 %
• BHP fell 3.1% in New York Rio -4% 10.1% less Atlassian
• Tesla -5.6% Apple -3.7% -4.8% Amazon Netflix -4.8 %

 Following an earlier surge through US64.50 shortly after the Fed statement was announced, the local currency was down 0.6% and below US63.60; the Bloomberg dollar spot index was up 0.3%. 

Bitcoin’s price on bitstamp.net fell by 1.6% to $US20,137. 

The yield on the 10-year US Treasury note increased by 6 basis points to 4.10 percent after falling as much as 5 points earlier. 

Market movements 

• Bitcoin fell by 1.6% to $US20,137 while the Australian dollar fell by 0.6% to 63.57 US cents.
• The Dow fell 1.6% on Wall Street. S&P -2.5% Nasdaq fell 3.4%
• Stoxx 50 -0.8% FTSE -0.6% CAC -0.8% DAX -0.6%
• Spot gold increased by 0.1% to $1,649,75 per ounce; 
• Brent crude increased by 1.4% to $96.01 per barrel; 
• Iron ore increased by 3.6% to $83.05. 
• The 10-year yield was US 4.10%. Germany is 2.13%, Australia is 3.80%

Today’s agenda 

Local: Balance of trade September: Jonathan Kearns, RBA’s head of domestic markets, will speak on a panel at the ASIC Annual Forum titled “Wholesale Market Conditions and Resilience.” 

Overseas data: The Eurozone’s September unemployment rate; the UK’s Markit and ISM services PMIs; the Bank of England’s policy decision; and the US’s September trade balance, factor orders, and durable goods orders