US shares carry on regardless
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Why do US equities thrive on no news and what were Friday’s market highs?
Well, there's one thing US equity markets seem to love no news. If there's no news, they'll assume everything is good, and that was the case on Friday. With equities reaching new highs. That wasn't the story for the UK, though, where the government deficit was the highest monthly number for quite some time. Or Canada, which has seen a slump in retail sales. And with a hold from the Bank of Japan, grinding out a busy week for central banks last week. It's a quiet one for that this week, and only a spread. It's Mondays, the 22nd of September, 2025. It's the morning call from NAB. Good morning. Well, US equities, the Dow, the Nasdaq, and the S P all finished on record highs on Friday. Uh over the week, the Nasdaq was up two point two percent.
The Russell two thousand, which didn't have a great day on Friday, but it was up two point two percent as well over the week. Compared to that, a one percent drop in the ASX two hundred uh over the week, a not point seven percent fall in the FTSE one hundred and a quarter percent drop in the DAX. Friday saw a bit of US dollar strength climbing. three percent on the DXY and only naught point one percent over the entire week. Compared to that over the week, the big winner was the Canadian dollar climbing naught point four percent. The pound was down though, naught point six percent, most of that from Friday. The Aussie down naught point eight percent over the week. And the Kiwi dollar, the biggest loser, down one point seven percent last week.
And US ten year treasuries, well they were up two basis points on Friday and more than six basis points over the week, but only up Up two basis points for two years over the week, and about four and a half basis points added to the Aussie and UK ten years last week and three for German Bundes, but the moves were all higher in yields last week. And oil, after a 1.4% drop in the price of WTI on Friday, it finished the week flat, whereas Brent lost half a percent last week. To our benefit, coal prices climbed 2.6% last week, and iron ore and gold both up. half a percent. But let's look at the reasoning behind some of those currency moves first of all. with Nabs Ray Actral in Sydney. So the Aussie and the Kiwi didn't end the week well, particularly as the Aussie got over sixty seven US cents during the week and it seemed like it was just going to keep on climbing, didn't it?
Now it's back below sixty six. And it's not because the US dollar is rising that's doing that, because it's been flat on the week.
How did the Dow, Nasdaq and S&P finish the week and what were the key index movers?
So what's the story here?
Yeah, morning, Phil. Well, Aussie as itself is not dramatically lower on the week, so a lot of it was just a retracement from the high. So there was there was a a little bit of a dollar story there because the dollar obviously sort of recovered a little bit of its poise um in the sort of post Fed trading environment. But uh one specific story actually that caught uh our eyes late in the day on Friday was news that um you know that uh the the Chinese entity that has been that was set up two years ago go effectively to uh um to to flex its muscles in terms of iron ore price negotiations reportedly um you know ordered steel uh impor iron ore importers uh or steel producers to stop buying one of the grades of uh BHP's um iron ore so you know we did see BHP's share price in the last half an hour of trading on Friday for um the best part of a dollar
Um and the Aussie dollar seem to go tick for tick with that. So uh you know, this is obviously just a a negotiating tactic, um, you know, as they're in negotiations for new long term supply contracts. So um you know, obviously that uh you know that that uh Chinese entity is acting as what do we call it, a monopsony effectively, because uh China being the the buyer of more than fifty percent of uh seaborn seaborne iron ore. But uh certainly had a little bit of an impact. impact anyway. But um yeah, but overall uh you know that that Aussie dollar pattern is is so familiar, isn't it, right back since April really, where it's been sort of two steps forward, one step back.
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Chapters
5 chapters
1
Why do US equities thrive on no news and what were Friday’s market highs?
0:01–2:15
2
How did the Dow, Nasdaq and S&P finish the week and what were the key index movers?
2:15–6:07
3
What caused the recent swings in the Aussie, Kiwi and Canadian dollars?
6:07–9:59
4
Why did the Australian dollar retrace from 67 cents and what does it mean for the AUD trend?
9:59–15:21
5
How is the UK government deficit affecting sterling and what are the fiscal implications?
15:21–15:22