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Bank of America Hartnett on capital flows: rate cut expectations become key variable

Bank of America Hartnett on capital flows: rate cut expectations become key variable

(1) Hartnett from Bank of America pointed out that money market funds saw net inflows of approximately $166 billion last week, marking the largest weekly inflow since April 2020 and indicating that a large amount of capital remains on the sidelines. (2) Hartnett emphasized that without sustained interest rate cuts from the Federal Reserve, this cash is unlikely to move into risk assets easily — in other words, "no rate cuts, no deployment of cash." (3) In terms of equities, Bank of America recommends maintaining a defensive stance before the midterm elections, with the market potentially fluctuating around 10% in both directions. (4) For the technology sector, Bank of America suggests not increasing positions at this time and believes that tech giants will outperform the semiconductor sector. (5) In bonds, Bank of America advises buying 30-year US Treasuries once yields have peaked. (6) Regarding small-cap stocks and REITs, Bank of America sees selective buying opportunities. (7) For gold and commodities, Bank of America recommends continued holding. (8) In emerging markets, Bank of America also recommends holding and sees the Chinese technology sector as worth watching. (9) In terms of market breadth, about half of global stock indices have fallen below key moving averages. (10) Bank of America's Bull & Bear Indicator dropped from 8.8 to 8.1, still in the sell zone. (11) Overall, market sentiment remains cautious, with fund flows closely tied to rate cut expectations. Further attention should be paid to the Federal Reserve's policy path and market concerns triggered by Trump's tariff-related remarks.

智通财经•2026-10-09 12:07
Australian stock market rises due to broad index gains; Firmus shelving IPO boosts tech stocks

Australian stock market rises due to broad index gains; Firmus shelving IPO boosts tech stocks

Updated to market close Firmus, backed by Nvidia, cancels $5 billion IPO plan; tech stocks see their biggest weekly gain in a week; Benchmark index posts gains for the second consecutive week Jasmeen Ara Islam Shaikh, Reuters, October 9 – Australian stocks rose on Friday as bargain hunters bought shares after a recent benchmark pullback; at the same time, Firmus’s decision to shelve its $5 billion IPO plan triggered an inflow of funds into local software stocks. The benchmark S&P/ASX 200 .AXJO rose 0.6% on Friday to close at 8,716.6 points after two consecutive days of declines. For the week, the index rose 0.4%, posting gains for a second straight week. Globally, comments from US President Trump that the US would pause strikes against Iran ahead of the November midterm elections provided a slight lift to market sentiment. Domestically in Australia, markets are closely watching September quarter inflation data to be released later this month, as well as awaiting the Reserve Bank of Australia’s last two policy meetings of the year in November and December. On the day, tech stocks .AXIJ jumped as much as 3.1% after data center operator Firmus, backed by Nvidia NVDA.O, called off its IPO due to lukewarm market response. Maas Group MGH.AX, a 3.2% shareholder in Firmus, resumed trading after a morning halt and saw its shares plunge as much as 10.7%. David Tuckwell, Chief Investment Officer at ETF Shares, said Firmus’s withdrawal was positive for local tech stocks as it kept fund managers’ money in existing listed shares and avoided forced rebalancing for index funds. He added that after extended selling, valuations in the sector were oversold and now operating on their own momentum. However, weak demand for Firmus indicated that investors preferred enterprises with solid performance, rather than shunning tech stocks entirely. WiseTech Global WTC.AX, Xero XRO.AX, and Life360 360.AX rose 4.2%, 3.5%, and 4.1% respectively. As gold prices edged up, gold miners .AXGD gained 1.9%, the sector's biggest gain in more than two weeks. GOL/ Weighed down by softer iron ore and copper prices, the overall mining index dipped 0.2%. IRONORE/ MET/L Financial stocks .AXFJ rebounded 0.5% after declines over the previous two sessions. Energy stocks .AXEJ edged higher by 0.2%, marking four straight gains despite weaker early oil prices. O/R Across the Tasman Sea, New Zealand’s S&P/NZX 50 index .NZ50 closed up 0.4% at 13,749.35 points. (For the convenience of non-English speakers, Reuters automatically translates its reports into several languages. Due to possible errors or omitted context in automated translations, Reuters does not guarantee the accuracy of such texts and provides them solely for reader convenience. Reuters accepts no liability for any damages or losses resulting from the use of automated translation features.) For more on "Schedules & Data": US earnings calendar RESF/US, Wall Street outlook for the week .N/O, Global economic outlook DATA/ ... See all the latest market headlines and breaking news at NEWS1.

路透社•2026-10-09 05:56
PRECIOUS-Gold rises on softer dollar, easing yields; Fed outlook in focus

PRECIOUS-Gold rises on softer dollar, easing yields; Fed outlook in focus

Fed's Musalem says tighter monetary policy needed to lower inflation Trump says US will not attack Iran before midterm elections Adds comments and updates prices By Ashitha Shivaprasad Oct 9 (Reuters) - Gold firmed on Friday as a softer US dollar and easing Treasury yields boosted bullion's appeal, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates. Spot gold XAU= rose 0.9% to $4,169.32 per ounce by 0137 GMT after hitting a two-month low on Wednesday. US gold futures GCcv1 gained 0.9% to $4,194.40. The dollar rally took a breather, making greenback-priced bullion more affordable for holders of other currencies, while the benchmark 10-year Treasury yield slipped for a second straight session. USD/ US/ "Possible tightening later on could keep gold at risk, especially as inflation fears remain high amid a rise in oil prices following increased Middle East supply disruption risks. However, ongoing central bank demand may limit losses," said Tony Sage, CEO of Critical Metals. "Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve’s October meeting." Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point. St. Louis Fed President Alberto Musalem said the US central bank will need to hike rates again to bring inflation back to its 2% target, although he declined to say what policymakers should do at their meeting later this month. Traders are pricing in an 18% chance of a rate hike in October and an 82% probability of an increase in December, according to CME's FedWatch tool. Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset. President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections, asserting that the two countries are having "productive" talks about ending the six-

Reuters•2026-10-09 01:55

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