The US is seeing a "shift of thinking" on interest rates with markets starting to price in several rate cuts for 2024, according to CommSec’s Tom Piotrowski. “We have seen a very profound reappraisal of what’s going to happen with US interest rates over the course of next year,” Mr Piotrowski told Sky News Australia. He pointed out that this shift translated to the markets seeing their “biggest rally” since March 2020. “They fell about a third of a per cent last week.” Presented by CommSec.

Economists are “a bit surprised” at US Federal Reserve Chair Jerome Powell entertaining the idea of interest rate cuts, according to The Switzer Report Founder Peter Switzer. It comes as the US continues to see favourable inflation numbers. “But I think a lot of people were surprised with Jerome Powell … entertaining the idea that rate cuts may well come sooner rather than later,” Mr Switzer told Sky News Australia. “I think that really excited not only Wall Street, but global stock markets and we also picked up a bit of that positivity. “It’s looking more like the Santa Claus rally is starting early.”

The latest Newspoll shows support for Labor has rebounded with the two major parties no longer neck-and-neck after preferences. The last Newspoll for the year has seen Labor reassert its lead over the Coalition. Labor scored 52 per cent of the vote compared to the Coalition’s 48 per cent. It’s almost identical to the result the government achieved at the last federal election. Anthony Albanese currently has an 11-percentage point lead as the preferred prime minister over Opposition Leader Peter Dutton.