S&P 500, Nasdaq fall with data, geopolitics offsets strong results. Treasuries, gold prices rise, stocks fall on Mideast fears. US yields slide on worries Israeli raids inside Gaza could escalate. European shares fall on global risk-off mood but log weekly gains.
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ASX 200 lost 25 points to 7027 (0.4%) as caution prevailed. It is a big week ahead with results, AGMs and economic data. Many players happy to hug the sidelines. Banks eased back with the Big Bank Basket down to $176.66 (0.5%). WBC the worst of the bunch down 0.8%. MQG off 1.4% with insurers mixed and fund managers easing. MFG fell 4.1% after moves in MGF to change its structure next year.
Wall Street finished in the red overnight after a US treasury auction sent bond yields higher, and CPI data came in hotter than expected. September monthly headline CPI came at 0.4%, higher than consensus of 0.3%, down from 0.6% in August. Headline YonY remained unchanged at 3.7%, although higher than expectations of 3.6%.
Market surviving the CPI number overnight – all is not lost although the rally has certainly started to doubt itself.
US equities finished higher overnight after a choppy session following the release of FOMC meeting minutes, which showed caution among policymakers, fuelling bets that rates would stay steady. The Dow edged higher, up 66 points (+0.19%). Up 143 at best. Down 127 at worst. The S&P 500 rose for a fourth straight session, up 0.43%, and the NASDAQ rose 0.71%
Our market up again – we are four days into this rally with the US CPI number to worry about tonight
ASX 200 limped to a 3-point gain to 7091 (0.04%) ahead of US CPI. Six sessions in a row. Just. CSL was the biggest drag on the index as positive drug trials in US marred outlook for medical companies. The stock fell 6,3%, RMD down 5.3% on same effect.
