Wall Street and European equities moved in opposite directions amid concerns of a looming US government shutdown. Wall Street slipped, while European markets gained. Elsewhere, Australian equities fell on limited confidence in another rate cut before year end.
Looming government shutdown slows Wall Street
Wall Street edged lower as the looming government shutdown heightened uncertainty around the Federal Reserve’s next move. Polymarket odds of a shutdown have risen above 85%. While previous shutdowns have had limited impact on markets, this one may prove more disruptive given the current economic climate. A delay in economic data releases could affect the Federal Reserve’s interest rate decisions, a key driver of the current rally. In other economic data, consumer confidence dropped to its lowest level since April, weighed down by President Trump’s Liberation Day tariffs. Consumers expressed a particularly dim outlook on the job market. Wall Street fell, the DOW and NASDAQ dipped -0.1%, while the S&P 500 held steady. Tesla and Amazon lost -1.8% and -1.5% respectively, dragging on the tech-heavy NASDAQ. Meta and Alphabet shed -1.1% and -1.2% respectively. Chipmaker Wolfspeed surged +54.1% after exiting bankruptcy. Firefly Aerospace dropped -23.5% following a testing mishap that destroyed the centre booster for its Alpha rocket. Pfizer rallied +6.0% after reports that the White House will launch a drug-pricing initiative—including a new TrumpRx platform—to sell Pfizer medicines directly to US consumers at government-negotiated discounts, positioning the company as a lead participant in the pilot programme.
Positive trading despite economic anxiety
European investors remained confident as the Stoxx 600 (+0.5%) and London’s FTSE 100 (+0.2%) moved higher despite Trump’s tariff threats and a likely US government shutdown. ASOS fell -4.3% after warning that annual revenue would miss market expectations. Close Brothers lost -2.3% in London after reporting a full-year loss of -£122 million. Regional data showed retail sales fell -0.2% in August, easing from -0.5% in the previous month.
Mixed markets in Australasia as reserve bank keeps interest rates steady
The ASX 200 fell -0.2% after the Reserve Bank of Australia—as expected—left interest rates on hold while dampening hopes for another cut later in the year. The cash rate remained at 3.60% as the bank warned that price pressures may be hotter than expected in the September quarter. Lower oil prices sent Santos, Woodside, and Beach Energy down -2.5%, -1.7%, and -3.4% respectively. New Zealand’s NZX 50 rose +1.2%. Korea’s Kospi slipped -0.2%, while Japan’s Nikkei 225 eased -0.3% to lead losses in Asia. Meanwhile, Hong Kong’s Hang Seng gained +0.9%, and China’s Shanghai Composite and CSI 300 added +0.5% each.
Oil and iron ore down, gold keeps going up
WTI crude fell -1.5% to US$62.49/bbl, gold gained +0.3% to US$3,845.81/oz, and iron ore slipped -0.1% to US$105.35/MT.
NZ Headlines
Restaurant Brands’ majority shareholder Finaccess Restauración, S.L. has launched a takeover bid to acquire the 25% of the company it does not already own.
Scales Corporation has agreed to increase its shareholding in its Australian Global Proteins joint ventures to take full ownership of Meateor Australia and Fayman International, and an 85% stake in ANZ Exports.
Today's Events
- EU CPI (MoM)
- US Job Openings