Good morning, it’s Angus here in Sydney. Here’s what you need to know on this Tuesday morning, following a blockbuster AI infrastructure deal in the US.

Today’s must-reads:
• Cboe gets Australia listing nod
• The outlook for interest rates worldwide
• Gold to be Australia’s second-biggest earner

What's happening now

Cboe Global Markets got regulatory approval to conduct sharemarket listings in Australia, bringing it closer to challenging the nation’s embattled main exchange operator ASX Ltd.

Gold will become Australia’s second-most-valuable commodity export, overtaking liquefied natural gas, after the metal’s “extraordinary surge” to record prices, the government said. Gold has punched to successive highs in the past 12 months as central banks boost holdings, the Federal Reserve cuts US interest rates, and geopolitical instability lifts demand for havens.

The Fed and global peers including the RBA appear set to keep cutting interest rates in the remainder of this year, carrying on where much of Europe has left off. Australia is edging toward the end of its easing cycle. Economists expect the next cut in November, while financial markets are betting on March 2026 — a gap that underscores the uncertainty hanging over the outlook.

Australia and northern neighbor Papua New Guinea signed a joint defense pact, as Canberra pushes to curb China’s influence in the region. It’s Australia’s first such alliance in more than 70 years and the first for PNG with any country. The security deal comes as Australia aims to keep South Pacific nations within the strategic orbit of the democratic bloc. 

New Zealand’s central bank is expected to cut interest rates this week but economists are divided over how aggressively it will respond to the weak economy.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

The S&P 500 climbed for a seventh straight session, the longest advance since May, with the gauge buoyed in part initially by surging Japan stocks and then AI mega deals stateside. The positive sentiment spurred the Aussie and kiwi higher despite the dollar gaining about 2% over the yen. Consumer confidence and job ads are on Australia’s slate while New Zealand has a business survey to consider. ASX futures point to a positive start for local equities.

Advanced Micro Devices Inc. landed a blockbuster deal with OpenAI to build artificial intelligence infrastructure, giving the chipmaker a chance to show it can mount a challenge to Nvidia Corp. in the AI computing industry. AMD shares soared 24%.

The White House tightened its pressure on congressional Democrats as a US government shutdown lurched into a second week, saying it would soon trigger federal worker layoffs without specifying when those could begin. President Donald Trump has said that he would use the shutdown to fire thousands more federal workers, who are normally furloughed during government closures.

A federal judge declined to quickly issue a temporary order blocking the Trump administration’s plan to deploy National Guard members to Chicago to counter protests against the US immigration crackdown, while urging the government to delay the controversial plan.

A federal law enforcement agent fires pepper balls at a demonstrator as tear gas fills the air in Broadview, Illinois, on Oct. 4. Photographer: Scott Olson/Getty Images

President Emmanuel Macron gave his outgoing prime minister, Sebastien Lecornu, 48 hours to negotiate with France’s political parties in a last-ditch effort to prevent the country from falling deeper into crisis. 

Tesla Inc. piqued investor interest with social media posts that sent the carmaker’s shares higher Monday. The company posted a video clip of a black hubcap-like object with a Tesla logo spinning before flashing the numbers 10/7, likely referencing a product unveiling on Tuesday. A second post appears to show a car parked in pitch-black darkness, revealing only its headlights.

What to watch

• Westpac October consumer confidence, 10:30 a.m. (Sydney)
• ANZ September job advertisements, 11:30 a.m. (Sydney)

One more thing...

A single trader burned Wall Street with a 11,000-to-1 bond bet. Back in 2020, Jan Ralph, an English native in Singapore, was convinced the threat of Covid was overblown. Firms including Citigroup Inc. and Goldman Sachs Group Inc. lined up to help him build a one-way bet of $2.6 billion. It backfired. Read The Big Take here.