The Australian share market is expected to hold steady today despite last week’s fall in the Nasdaq 100 and a rise in oil prices to US$110 ($158) a barrel.
The Australian market bucked the US trend last week, rising 1% while the Nasdaq 100 fell 5.5%.
It’s a major week for US stocks, with companies reporting third-quarter earnings, including major AI investor and hyperscaler Meta Platforms (NASDAQ:META). Investors will be watching for evidence that AI-related revenue growth can justify the enormous capital expenditure being committed to the technology.
Gold investors will also be watching to see whether the precious metal can hold its ground after US long-term bond yields fell last week. Lower yields can support gold by reducing the opportunity cost of holding a non-yielding asset.
However, the outlook for US government finances remains a concern, with the federal budget deficit continuing to grow.
The New York Times reports:
“The United States budget deficit approached $2 trillion in the 2026 fiscal year, its highest level since the pandemic, as spending on the military, safety net programs, and interest on the debt dwarfed the Trump administration’s cost cuts, Treasury Department figures showed on Friday.”
Source: the New York Times
Write to Callum Newman at Mining.com.au
Main image: Unsplash
