ASX to rise, US bonds rally on rising US rate bets
US bonds rallied as traders further lifted their bets on a September rate cut. Treasury Secretary Scott Bessent said he sees the potential for US rates to fall as much as 175 basis points, in a series of moves.
The probability of a quarter point rate cut at the Fed's mid-September meeting reached 97.9 per cent according to the CME's FedWatch Tool, up from 93.9 per cent the previous day.
Bessent also said he sees the agreements to allow Nvidia and AMD to sell semiconductor chips to Chinese customers, and paying the US Treasury 15 per cent of sales to do so, as a potential model for other sectors. The revenue would be used to pay down America's debt, he said.
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Market highlights
ASX 200 futures are pointing up 37 points or 0.4 per cent to 8831.
All US prices at 4pm New York time.
Today's agenda
Among the other results expected on Thursday: Temple & Webster, Abacus Storage King and Pro Medicus. Follow our reporting season coverage here.
For a review of Wednesday's reporting news:
Australia's July jobs report is scheduled for release at 11.30am. In a note, TD Securities said: 'We remain pessimistic on the jobs market and don't expect a strong rebound after two weak jobs report. We expect jobs growth at +12k in July. Unemployment rate is likely to stay at 4.3 per cent with the participation rate holding steady. Another weak job report may trigger speculation of consecutive rate cuts from the RBA.'
Overseas, the UK and the EU are each set to report second-quarter GDP data. Policymakers meet in Norway and are expected to keep rates on hold. The US will release July PPI data and weekly initial claims: the strength, or weakness, of the labour market is seen as key to the Fed's next rate decision.
Top stories
Chalmers moves to phase in EV road user charge | The Albanese government is working on plans for a road user charge that would start with heavy electric vehicles.
| In its final report before next week's roundtable, the Productivity Commission also urged the government to create uniform rules on AI in the care sector.
| 'I think we could see it in other industries over time,' Treasury Secretary Scott Bessent said, with the revenue going to pay down the national debt.
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