US markets were lower overnight, ending near worst levels, following hot labour market data and a ramp-up in treasury issuance just a day after a US credit downgrade by Fitch. Dow Jones down 348 points (-0.98%). Dow at worst down 404 points. S&P 500 notched its worst day since April, down 1.38%. Tech-heavy NASDAQ off 2.17%, its worst day in five months. Wall Street’s “Fear Guage” the VIX climbed the most in five months, up 15.5%. US 10Y treasury yields hit the highest levels since November, and the USD Index rose 0.28%. Among stocks, AMD's earnings declined by 7% despite reporting upbeat earnings, mainly due to a disappointing outlook. Starbucks' stock rose by 0.9%, although the company's sales fell short of expectations.

• ASX to fall at open. SPI Futures down 58 points (-0.79%).
• ADP July report shows private payrolls rose by 324K, significantly above the 183K consensus but falling below June's 497K. The report supports soft-landing scenarios but contrasts with the latest JOLT report showing low job openings.
• Russell 2000 -1.37%
• Gold lost 0.54%, as US yields increase.
• Copper fell 1.56% after the USD continues to rise.
• Nickel fell 3.47% to a 3-year low as Indonesian supply continues to increase.
• Aluminium -1.73%, Zinc -2.65%, Lead +0.35%, Tin -1.39%
• WTI fell 2.30% and Brent fell 2.89% as US crude stockpiles fall by the largest on record in one week.
• 10Y Bond Yields gaining: US 4.09%, Australia 4.03%, and Germany 2.49%.

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