Macro update
Wall Street ends higher: US equities closed stronger on Wednesday, with gains led by healthcare and technology shares, even as weak jobs data and the start of the government shutdown weighed on sentiment.
Healthcare boost: Pharma stocks rallied globally, with AstraZeneca and peers advancing after Pfizer reached a deal with President Trump to lower Medicaid drug prices in exchange for tariff relief.
Soft jobs data: Automatic Data Processing (ADP) reported a 32,000 decline in private payrolls for September, missing expectations for a 50,000 increase. August figures were also revised down to show a slight contraction.
Fed expectations: The disappointing labour numbers bolstered market bets on quarter-point rate cuts at the Federal Reserve’s (Fed) two remaining meetings this year, putting pressure on Treasury yields and the US dollar.
Commodities and safe havens: Gold hovered near its record at $3,900.00 as investors sought safety, while oil prices inched higher on the prospect of tighter sanctions against Russia.
Global markets: Chip sector strength supported gains in Tokyo, Seoul and Taipei, while European futures pointed higher ahead of comments from European Central Bank (ECB) policymakers.