Closing Bell 6th October: ASX Rallies Amid Global Tensions Financials Lead the Way

Oil’s Uncertain Path Amid Economic Concerns
Oil is on track for its largest weekly decline since March, with West Texas Intermediate nearing $US83 a barrel. This drop is attributed to concerns over global economic health affecting demand. Despite a surge in Q3 due to supply restrictions by OPEC+ leaders, the rally has reversed recently due to macroeconomic worries. However, both Russia and Saudi Arabia remain committed to output cuts for the year’s remainder.

US Bond Yields and Federal Reserve’s Stance
The US 10-year yield has slightly decreased after reaching a 16-year peak this week. Mary Daly, President of the Federal Reserve Bank of San Francisco, suggests that even if rates remain unchanged, the policy will become more restrictive as inflation drops. She also hinted that the recent spike in bond yields could be a reason for the Fed to maintain its current rate.

Anticipation Surrounding US Non-Farm Payrolls
The upcoming US non-farm payrolls data is in focus, with predictions indicating the addition of 170,000 jobs in September. Despite some market stability, there’s significant concern about the prolonged impact of sustained high interest rates. Barclays analysts believe that unless there’s a significant downturn in equities, global bonds will continue to decline.