Global markets responded to a strong report on consumer confidence and signals of a possible pivot in interest rates, as various indices mostly closed higher. The S&P 500 edged up 0.1 per cent, indicating its strongest monthly gain for the year, while the Dow Jones Industrial Average rose 0.2 per cent and the Nasdaq Composite eked out a 0.3 per cent gain. This came as Federal Reserve governor Christopher Waller signaled that rates in the US may have peaked, with a potential pivot to cuts on the horizon. The yield on the US 10-year note slid 6 basis points to 4.32 per cent, reflecting a drop of 51 basis points in the last month.
Australian shares also saw a positive outlook in line with modest gains in New York. The anticipated easing of prices in October, reflected in the expectation for Wednesday’s fresh inflation data, contributed to the rally in the Australian share market. The S&P/ASX200 added 0.4 per cent, reaching 7015.2 points, while the All Ords climbed to 7223.1 points. The Australian dollar climbed to US66.32c, its highest level since August 1, on the expectation that interest rates will continue to remain higher for an extended duration in Australia compared to the US and Europe.
Investors are particularly focused on the RBNZ’s latest official cash rate decision, with a hold at 5.5 per cent expected at midday. Additionally, local investors are awaiting the release of the monthly CPI indicator, both of which could provide further insights into market movements and potential impacts on global trade. With the yield on the US 10-year note experiencing a significant drop and signals of a pivot in US interest rates, global markets will be closely monitoring the potential effects on investment flows and market dynamics.
