ASX to fall, Tesla rallies, UK 10-year bond yield soars
Tesla leapt more than 5 per cent after reporting less dismal sales than some had forecast. Nvidia rebounded more than 2 per cent and Apple extended its five-day rally to near 5 per cent.
Nvidia's advance came as Microsoft wavered on a report the company is scaling back its ambitions for AI chips to overcome delays, according to Bloomberg.
President Donald Trump said the US had reached a framework trade agreement with Vietnam.
The 10-year UK government note saw its yield soar 16 basis points to 4.61 per cent.
Market highlights
ASX futures are pointing down 28 points or 0.3 per cent to 8570.
All US prices near 2.30pm New York time (4.30am AEST).
Today's agenda
May trade data is set for release at 11.30am, though the focus is on the US late Thursday when there will be the June nonfarm payrolls report as well as weekly jobless claims and then a bit later factory orders and durable goods orders.
Vanguard senior economist John Hirt: 'We expect a respectable gain of 110,000 jobs in June slightly below consensus (120,000). While Healthcare employment remains a key driver, signs of labour market softening are emerging—particularly in residential construction. We anticipate a more pronounced market reaction to downside surprises, especially if accompanied by a rise in the unemployment rate.'
Hirt said he sees no need for any policy change at the Federal Reserve. 'If the labour market remains on the trajectory we expect, the Fed can afford to be patient. We anticipate that the Fed will be able to make two more rate cuts later this year in this environment. However, policy nuance will be crucial, and uncertainty remains high. Inflation expectations and the persistence of tariff-related inflation are likely to play a central role.'
Top stories
'Red alert' for dodgy advisers pushing risky super schemes | Deputy chairwoman Sarah Court says ASIC is already investigating two big platform trustees for failing to protect consumers from high-risk investments.
Treasury prepares to crack down on audit firms, with or without ASIC | Officials are considering a number of options to crack down on major accounting and consulting firms, such as increasing the powers given to the corporate regulator.
'Youthquake': Coalition deserted by younger voters | The Coalition's immense challenge has been laid bare by new polling that shows its support has completely collapsed among voters aged under 35.
| Norway's Equinor has walked away from Tasmania's only proposed offshore wind development, casting fresh doubt over its last remaining Australian project.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
30 minutes ago
- AU Financial Review
‘The horse is about to bolt': Auctions boom as rates fall
Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts.
AU Financial Review
30 minutes ago
- AU Financial Review
Petrol pass-the-parcel: Woolworths curse too much for EG
Australia's big two supermarkets, which not long ago accounted for half of all retail petrol sales across the country, are gone from the sector, and now one of their replacements wants to get out, too. British-born EG Group, which paid $1.73 billion for Woolworths' 540 company-owned fuel convenience sites in April 2019, has revamped efforts to sell its Australian arm and is in talks to cut its losses and get out, only six years after landing with a splash and promising to shake up the local market.
Perth Now
an hour ago
- Perth Now
US tariffs 'second fiddle' to overseas student caps
Australia's limits on international students could be a bigger issue than US tariffs, an expert has warned. President Donald Trump's tariffs have become arguably the biggest economic story of the year, with most Australian goods being hit with a 10 per cent levy while 50 per cent tariffs are imposed on steel and aluminium sent to the US. But the direct impact of the measures on Australia is relatively small as most exports tend to go to China, Japan and Korea, according to University of Sydney economics lecturer Luke Hartigan. The bigger issue may be one Australia has already inflicted on itself. "It's important to look at the larger scheme of things," Dr Hartigan told AAP. "The tariff exemption is important, but if we wanted to shoot ourselves in the foot, we would reduce the number of international students." "What's happening with our tariffs with the US is second fiddle." International student education was worth $51 billion for the Australian economy in 2023/24, but both political parties have vowed to slash numbers, with Labor already revealing a 270,000 cap from 2025 after more than 445,000 commenced study the year before. Dr Hartigan said international students were important for soft power. "They get to see Australian culture, they get to learn about Australia and they go back and speak favourably about Australia, so it's a very positive thing," he said. But most Australian political commentary has taken on the tariff issue, especially as Mr Trump is set to lift his tariff pause on July 9. Prime Minister Anthony Albanese has said the government will continue negotiating for exemptions while keeping the national interest in mind, and dismissed Trump-style isolationist policies. However, opposition trade spokesman Kevin Hogan has said the government has "waved the white flag" and called out Mr Albanese for failing to meet Mr Trump face-to-face. "There are countries dealing and talking to the new US president, but not ours ... it is embarrassing," Mr Hogan said. Australia could feel some indirect effects when the pause lifts, Dr Hartigan said. Tariffs on China could cause issues for Australia and uncertainty around the levies could play out in the stock market.
