This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Reserve Bank of Australia (RBA) raised the cash rate by 25 basis points to 4.85%, the highest level since 2008, following a split 6-3 vote.
- Taiwan Dollar (TWD) fell to its lowest level since April 2025, depreciating past 32.3 per US dollar due to record foreign equity outflows and semiconductor stock volatility.
- JPMorgan (JPM) lowered its price target for Apple (AAPL) to $355 from $360, despite other analysts like Monness raising targets ahead of earnings.
- Chinese 1-month Treasury bills were auctioned at a 0.7957% yield, reflecting ongoing liquidity adjustments in the mainland's money markets.
- Michigan political drama intensified as Representative Haley Stevens revoked her endorsement of Democratic Senate nominee Abdul El-Sayed, backing his GOP rival Mike Rogers instead.
RBA Delivers Fifth Rate Hike of 2026
The Reserve Bank of Australia increased its official cash rate to 4.85% on Tuesday, marking the fifth hike this year. The decision was driven by a material upward revision to inflation forecasts, with the board now expecting inflation to remain above the 2-3% target range until late 2027.
The board was notably divided, with six members voting for the hike while three preferred to hold rates at 4.60%. Governor Michele Bullock highlighted that AI-related investment is driving rapid price increases in technology goods, while domestic capacity pressures remain tighter than previously estimated.
Taiwan Dollar and Asian Markets Under Pressure
The Taiwan Dollar (TWD) dropped to its weakest level in 18 months, pressured by a massive sell-off in global semiconductor stocks. Foreign investors reportedly sold a net NT$165.3 billion of Taiwanese equities, the third-largest daily outflow on record, as concerns over AI investment returns and high US interest rates dampened regional sentiment.
In response, Taiwan’s central bank reportedly eased daily limits on US dollar sales by exporters to provide liquidity and support the local currency. Meanwhile, the Australian Dollar (AUD) weakened further, falling 0.35% to $0.6974 against the greenback following the RBA's less-than-unanimous hawkish signal.
Tech Sector and Analyst Adjustments
Apple (AAPL) saw mixed sentiment from Wall Street ahead of its fiscal fourth-quarter earnings. While JPMorgan (JPM) trimmed its price target to $355, other firms like Monness, Crespi, Hardt raised their targets to the same level, citing product innovation. Apple shares have gained approximately 27% in 2026, outperforming peers as investors favor its "asset-light" AI strategy.
In the fixed-income market, Chinese 1-month Treasury bills were auctioned at a yield of 0.7957%. This comes as China's 10-year government bond yield continues to hover near 1.63%, reflecting the broader trend of lower yields in the region compared to the US and Australia.
Michigan Senate Race Upended
In a significant political development less than 48 hours before the US elections, Representative Haley Stevens revoked her endorsement of fellow Democrat Abdul El-Sayed. Stevens announced she would instead support Republican candidate Mike Rogers, citing El-Sayed's fitness for office and a public rift over campaign strategy. The move has stunned party officials in a race that could determine control of the United States Senate.
Automated market updates written with AI from market data and news wire reports, published without human review.