Closing Bell 23th October: ASX’s Rocky Ride Continues

Bitcoin Extends Gains Above $US30,000

Bitcoin has surged past the $US30,000 mark, a first since July, without a clear catalyst driving its volatile trajectory. The cryptocurrency has almost doubled in value since the start of the year. The ongoing conflict in the Middle East, rising bond yields, and uncertainties regarding long-term interest rates have left investors on edge. A pending decision by the US Securities and Exchange Commission on a bitcoin ETF could potentially channel more capital into the asset.

Australian 10-Year Govt Bond Yield Peaks Since 2011

Australia’s 10-year bond yield has reached a peak of 4.81%, a height unseen since 2011. The market remains jittery following the Middle East conflicts, causing erratic bond movements. Despite no clear trigger for the rising yields, global bonds have faced significant sell-offs, driven by expectations of enduring high interest rates.

$A Under Pressure Amid Middle East Tensions

The Australian dollar is facing strains, influenced by fears of escalating conflicts in the Middle East, currently trading at US63.12¢. The currency has depreciated by US5¢ since the year’s commencement, primarily due to interest rate disparities between the US and Australia. Upcoming events, such as statements from the Reserve Bank of Australia and inflation reports, are anticipated to significantly impact the financial markets.