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US Sell-off Spooks Australian Market Opening
2 Nov
Summary
- Australian futures indicate a weaker opening due to global equity sell-offs.
- US markets show significant risk aversion, impacting S&P 500 and Nasdaq futures.
- Upcoming RBA decision and US data will shape market sentiment this week.
Australian equities are poised for a subdued opening on November 2, 2026, influenced by a significant risk-off movement in US markets. E-mini S&P 500 futures have dropped approximately 1.8%, while Nasdaq 100 contracts are down around 3.5%. This trend is accompanied by a notable increase in volatility, as VIX futures climbed over 12%, indicating a shift towards capital preservation.
The Australian market's open will depend on whether the US risk aversion stabilizes or intensifies. Investors are closely watching upcoming US manufacturing data and Federal Reserve commentary. These events may either validate the current repricing of growth and risk premiums or necessitate a broader sentiment reassessment.
Notable stock movements include Star Entertainment Group's jump after accepting a penalty, Reece's gains following positive AGM materials, and European Lithium's climb amid merger progress. Conversely, 4DMedical declined sharply after a constitutional amendment failed, IperionX fell on its quarterly report, and Coles Group dropped following weaker sales growth.
Key economic events for the week include the RBA Interest Rate Decision on November 3, Australian Building Permits on November 2, and Australia's Balance of Trade on November 5. Westpac Banking and National Australia Bank are also set to release their full-year 2026 results, with focus on margins and credit conditions.
