US markets finished lower after October inflation came in hotter than expected, strengthening expectations of another Federal Reserve rate rise in December. The pullback puts pressure on the Australian market this morning, following Tuesday’s strong rally.
The S&P 500 fell 0.4% to 7,520.93, the Dow Jones lost 0.3% to 52,231.89, while the Nasdaq and Russell 2000 both dropped 0.7%, closing at 25,065.87 and 2,821.38 respectively.
The inflation report showed US consumer prices rose 0.4% in October, above the 0.3% expected. Treasury yields and the US dollar moved higher as traders increased bets on further tightening from the Fed.
For Australia, SPI futures were pointing to a 0.5% fall to around 9,036 at the latest early-morning reading.
What to watch today
The immediate question is whether the local market gives back some of Tuesday’s gains as investors respond to the US inflation surprise.
Tuesday was a particularly strong session for smaller companies. The Small Ordinaries rose 2.29%, comfortably ahead of the ASX 200, while the Emerging Companies index gained 1.60%.
Market breadth was also positive, with advancing stocks in the ASX 300 outnumbering decliners 253 to 36. That suggests the rally was not confined to a handful of large companies.
Today’s focus will be whether that broader appetite for risk holds up, particularly across resources, technology and emerging companies, or whether higher bond yields prompt investors to become more selective.
On the calendar
The Australian Bureau of Statistics releases its September-quarter Lending Indicators today.
The figures cover new borrower-accepted finance commitments for housing, personal and business loans, providing another look at borrowing activity following the RBA’s recent rate increase.
The release is scheduled for 11:30am AEDT (8:30am Perth time).
It is also Veterans Day in the US. US sharemarkets are open for normal trading, although the US bond market is closed.
And let’s not forget, today is Remembrance Day. At 11:00am, Australians will pause for a minute’s silence to remember those who served and sacrificed their lives in war and conflict.
Local market news
There was plenty of company-specific activity on the ASX on Tuesday.
Monadelphous (ASX: MND) was among the standout performers, jumping 15.3% to $32.63 after forecasting first-half revenue of around $1.7 billion and net profit of $80–85 million. The midpoint of its profit guidance was around 23% above analyst expectations.
Qantas (ASX: QAN) gained 6.3% to $9.90 after announcing a technology outsourcing agreement with Accenture that will involve around 850 job cuts, with the first wave expected by mid-2027.
Life360 (ASX: 360) reported third-quarter revenue growth of 40% and a 41% lift in adjusted EBITDA, although the market response was more cautious as investors weighed its user-growth outlook and advertising guidance.
OFX (ASX: OFX) reported a 72.4% fall in underlying first-half EBITDA to $4 million, with weaker business confidence weighing on payment volumes. The company is targeting a return to underlying profit in the second half.
In the resources space, Vulcan Energy (ASX: VUL) said it is mobilising a second drill rig at its Lionheart lithium and geothermal project in Germany, while Calix (ASX: CXL) secured a $10 million strategic investment for its Zesty green iron project in Western Australia.
ASX market news today
MGX Resources (ASX: MGX) has established decline portals at Groundrush;
Nova Minerals (ASX: NVA) has confirmed 216 ktpa processing capacity for Alaska Hub;
Everest Metals Corporation (ASX: EMC) has formed strategic research partnership to advance Mt Edon rubidium;
New Frontier Minerals (ASX: NFM) has advanced Big One follow-up drill target; and
Patronus Resources (ASX: PTN) has drilled gold Intercepts along trend at Grove Hill.
Buck and ore
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AUD / USD
US$0.686
Australian dollar
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IRON ORE
US$92.54
▼ 0.18% · Singapore
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BRENT CRUDE
US$92.037
▼ 0.60% · per barrel
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GOLD
US$4,031.93
▼ 2.63% · per troy ounce
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US NATURAL GAS
US$3.3050
▲ 2.73% · per gigajoule
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Digital currencies
Bitcoin was trading around US$73,273, down approximately 2.2% in the latest early-morning snapshot.
The move came alongside weakness across risk assets, with higher US yields and a stronger dollar adding pressure to markets.
Tuesday’s session showed that the rally had extended well beyond the largest ASX companies, with small caps and emerging companies outperforming the benchmark.
With Wall Street now under pressure from renewed interest-rate concerns, the question for local investors is whether that appetite for smaller stocks can hold up.
Are you watching the broader market today, or is the focus shifting back to the larger ASX names?
| 360 | 12.5K views |
| NVU | 8.6K views |
| GED | 5.9K views |
That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.
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