Markets

The spotlight is on RBA Chief Michele Bullock's speech scheduled for 7pm AEDT at the Global Markets Conference hosted by CBA in Sydney.

Australian shares closed at their lowest level in a year on Monday, following a trend set by a weaker Wall Street. This decline was driven by concerns about an escalation of the Middle East conflict, which negatively impacted investor sentiment.

At noon, the S&P/ASX 200 is 0.76 per cent lower at 6,848.40. This drop was in line with Wall Street's performance, driven by concerns about potential interest rate hikes by the Federal Reserve and worries about the escalation of the Middle East conflict.

In August, Chinese investors recorded their highest selling activity of US bonds and stocks in four years, amounting to $21.2 billion, with a focus on treasuries and equities, as per data from the US Department of the Treasury. Additionally, Japanese investors have also been selling US securities, driven by the weakening yen and the strategy to bolster their currency by selling treasuries for dollars.

Australia's benchmark index had its worst one-day performance in four weeks on Thursday. This decline was attributed to rising tensions in the Middle East and an unexpected drop in the jobless rate for September, which raised concerns among investors.

The big four Australian banks are projecting various outcomes for the labor market: Commonwealth Bank (CBA) expects a 25,000 job gain with a higher unemployment rate of 3.8%, while National Australia Bank (NAB) forecasts a 30,000-job increase with unemployment at 3.7%. ANZ predicts a 20,000-job rise and steady unemployment at 3.7%, and Westpac anticipates a 20,000-job increase with no change in the unemployment rate, also at 3.7%.

The Australian sharemarket increased in value on Wednesday, as China's gross domestic product (GDP) for July-September grew by 4.9% compared to the previous year.

Oil prices surged by up to 1.7% in early Asian trading following a deadly explosion at a Gaza hospital, heightening tensions in the Middle East ahead of US President Joe Biden's visit. A summit between Biden and leaders of Jordan, Egypt, and the Palestinian Authority was canceled as the US president seeks to prevent further escalation in the Israel-Hamas conflict.

The ASX overcame a two-session losing streak thanks to a surge in technology-related stocks, despite some surprisingly cautious remarks from the Reserve Bank of Australia.

The Reserve Bank of Australia recently released its latest minutes regarding the cash rate decision. During the meeting, members contemplated increasing the cash rate target by 25 basis points but ultimately chose to keep rates unchanged for the fourth consecutive time.

On Monday, the Australian stock market experienced a decline as investors sought refuge in bonds and gold due to growing concerns about increasing tensions in the Middle East.

Oil prices remained stable as Israel had not yet initiated its expected ground offensive in Gaza, while the United States intensified diplomatic efforts to prevent the crisis from escalating regionally.

Oil prices fell as US crude stockpiles increased significantly by 10.2 million barrels, the largest rise since February, and demand for gasoline remained low, pushing gasoline futures to their lowest level since December 2022.

The Australian Competition and Consumer Commission plans to reject authorisation for electricity industry participants to coordinate repair, maintenance, and upgrades due to concerns that it wouldn't substantially enhance the Australian Energy Market Operator's outage management capabilities and might harm competition.

Oil prices remained stable, hovering around $83 per barrel, after an initial surge linked to Hamas' attacks on Israel over the weekend. This surge was reversed following a report suggesting Iran's surprise at these attacks, potentially reducing the chances of additional sanctions on Iranian oil and limiting Iran's involvement in the conflict in the Middle East.

Australian bond yields have decreased, following the trend of their US counterparts, in response to signals from Federal Reserve officials that the central bank is unlikely to raise interest rates further.

The S&P/ASX 200 surged back above 7000 on Tuesday, driven by a shift in rhetoric from US Federal Reserve members towards a more dovish stance and signs of easing inflation.

Oil prices held steady following a significant surge as Israel indicated that its retaliation against Hamas attacks had just begun, raising concerns of increased instability in the region.

On Monday, the ASX experienced gains, primarily driven by a significant increase in energy and gold stocks.

ASX rises at midday primarily due by a rally in energy and mining stocks, which was a response to the surge in oil prices in Asia.

At noon, the S&P/ASX 200 is 0.37% higher at 6,951.40. The SPI futures are pointing to a rise of 19 points.