Overnight – Higher Treasury Yields cap stock gains, Silver hits 12 year high
Treasury yields climbed overnight, capping gains in equities, as Fed speakers continue to echo the need for more gradual pace of rate cuts while silver surged to 12-year highs as BRICS conference kicks off today
A Nvidia-led climb in tech kept losses in check, jumping 4% to keep a lid on losses in the broader market as investors looked ahead to the start of big tech earnings. Tesla will be the biggest company to report this week, on Wednesday, with the electric vehicle maker’s earnings in close focus after the revealing of its robotaxi earlier this month largely underwhelmed. Prints from a string of major chipmaking firms are also due this week, coming after earnings from industry bellwethers ASML and TSMC provided mixed cues on demand. Texas Instruments, Western Digital Corporation and Lam Research are among the majors chip stocks set to report, while in the broader tech sector, IBM, is also due this week.
It’s set to be a relatively quiet week on the U.S. economic calendar, but investors will get an update on the health of the housing sector with reports due out on both existing and new home sales. There are also reports on durable goods orders, consumer sentiment and initial jobless claims. On Wednesday, the Fed will publish its Beige Book, a readout on economic conditions in the central bank’s 12 districts.
Investors and traders will also get a chance to hear from several regional Fed officials during the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker and Richmond Fed President Thomas Barkin.
The BRICS conference welcomes 35 countries to their summit in Russia from today, while the IMF also begins a 3 day meeting in Washington tonight.
ASX SPI 8308 (-0.81%)
The ASX will pull back from highs as rising global bond yields have finally started to dampen the enthusiasm for growth stocks. The market still seems on hold until the US election is out of the way.
The BRICS conference could see some chest beating from Russia and China on de-dollarisation, a positive for Gold and Silver
WiseTech remains in the unwelcome spotlight after the news that billionaire businessman Richard White has been selling hundreds of millions of dollars worth of shares to pay his ex-wife, contradicting earlier explanations for the sell-off. Shares in WiseTech slumped almost 15 per cent on Monday.
Suncorp, Magellan and Transurban hold AGM’s.
