ASX 200 set for positive start; Bond yields plunge on rate cut expectations

November 30, 2023 09:39 AM AEDT | By Investing
Follow us on Google News: - The Australian Stock Exchange is set to experience a modest surge as bond yields continue to plummet, fueling strong anticipations that interest rate reductions are imminent. Wall Street, however, concluded with minimal changes after initially posting gains.

InvestingPro+ with a 60% discount is not a good Cyber ​​Monday offer? We're going one better! With the discount code “VARGAPRO23” you get an additional 10% off the InvestingPro+ 2-year subscription. Click here! and don't forget the discount code.

The US 10-year yield fell below 4.30%, marking a 57 basis points decline over the past month. Renowned investor Bill Ackman of Pershing Capital expressed his belief that the Federal Reserve would have to implement rate cuts sooner than anticipated.

Today's agenda includes the release of local data on private sector credit for October, private capex for Q3, and building approvals for October. Overseas data includes New Zealand building permits, ANZ business confidence, China's November NBS manufacturing and services PMIs, Japan's October industrial production, Eurozone's November CPI and October unemployment rate, and the US's October personal income, personal spending, and PCE deflator.

Mesoblast Ltd (ASX:MSB) is set to announce its earnings, while companies like Imugene, Lake Resources, Link Administration, Liontown Resources (ASX:LTR), Mayne Pharma, Sayona Mining, and Wotso Property will host their annual meetings. Aristocrat Leisure and Technology will trade ex-dividend.

Strategists Matthew Ross and Tony Wu from Goldman Sachs (NYSE:GS) indicated that their economists no longer anticipate the Reserve Bank of Australia (RBA) to increase rates. They urged investors to pay heed, especially since the economy continues to display little indication of a significant slowdown. Over the past three decades, the shortest duration between the last hike and the first cut has been six months, while the longest has been 19 months in the mid-90s.

ASX 200 Futures were lifted 0.5% by 7 am AEDT. The Australian dollar weakened by 0.5% to 66.18 US cents, while Bitcoin fell by 0.8% to $US37,782.

In addition to Ackman's prediction, Federal Reserve policymakers are increasingly hinting at maintaining the status quo in their December meeting. Fed Bank of Cleveland president Loretta Mester expressed her support for holding rates steady, asserting that the current policy is well-positioned to evaluate if inflation is returning to 2%. Atlanta Fed chief Raphael Bostic expressed growing confidence in inflation's downward trend, while Richmond counterpart Thomas Barkin suggested the central bank should keep the option to hike.

Despite the current sentiment, JPMorgan (NYSE:JPM) equity strategists maintained a less optimistic outlook for US equities compared to others on Wall Street. They predict a more challenging macro environment for stocks next year, given weakening consumer trends and significant shifts in investor positioning and sentiment.

This article first appeared in


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK