U.S. stocks maintained their stability, with investors closely monitoring the evolving interest rate landscape. Simultaneously, Apple Inc. (NASDAQ:AAPL) experienced a notable surge driven by robust pre-orders for the iPhone 15.
As the Australian shares prepared for the trading day ahead, ASX futures showed a slight decline of 21 points or 0.3%, settling at 7214 around 7 am AEST. On Wall Street, the major indices displayed minimal fluctuations, with the Dow Jones Industrial Average, S&P 500, and Nasdaq edging up by +0.02%, +0.07%, and +0.01%, respectively.
In the U.S. market, BHP witnessed a marginal decrease of 0.3%, while Rio Tinto (NYSE:RIO) recorded a 0.9% dip. On the positive side, Atlassian (NASDAQ:TEAM) demonstrated a 0.9% gain. However, Tesla (NASDAQ:TSLA) encountered a notable decline of 3.3%. The standout performer of the day was Apple (NASDAQ:AAPL), as its shares surged by 1.7% on the strength of robust pre-orders for the much-anticipated iPhone 15. Amazon (NASDAQ:AMZN) experienced a minor setback with a 0.3% dip. Concurrently, the local currency displayed modest appreciation, while the Bloomberg dollar spot index witnessed a slight decline.
In the realm of cryptocurrencies, Bitcoin exhibited a 1.2% uptick, reaching $26,785 at 7:15 am AEST on bitstamp.net, briefly surpassing the $27,000 threshold. Meanwhile, the yield on the U.S. 10-year note saw a three-basis-point decrease, settling at 4.30% at 4:59 pm in New York.
Market analysts anticipate the Federal Reserve to maintain interest rates within the 5.25% to 5.5% range during its upcoming meeting on Wednesday. According to the CME FedWatch Tool, there is a nearly 70% likelihood of another rate pause in November.
JPMorgan strategists emphasized the contrast between European rate hikes and the anticipated Federal Reserve pause, aligning with previous decisions made by the Bank of Canada and the Reserve Bank of Australia. They underscored the common message from central banks, indicating a prolonged period of elevated interest rates.
In other noteworthy developments, Morgan Stanley recommended a defensive growth portfolio as suitable for a “late cycle” trading market. Russell ‘Rusty’ Delroy, founder and investment manager of the boutique Cottesloe firm Nero Resources Fund, expressed confidence in the oil and gas sector. Delroy pointed to a significant misalignment between company valuations, investor sentiment, and supply-demand metrics, identifying value in oil and gas majors such as BP (LON:NYSE:BP), which he believes will maintain relevance over the long term.
