6 things Australian traders will be talking about this morning

Spencer Platt/GettyTraders work on the floor of the New York Stock Exchange (NYSE) near the end of the trading day on March 17, 2009 in New York City. Following a better-than-expected housing market report released Tuesday, stocks surged with the Dow closing up 178 points.

Stocks were mostly higher Monday, paring some earlier gains, after the US reached a trade deal with Mexico and Canada. The US dollar and US Treasury yields jumped.

Here’s the scoreboard:

  • Dow: 26,651.21 +192.9 (+0.73%)
  • S&P 500: 2,924.59 (+0.36%)
  • AUD/USD 0.7223 -0.0005 (-0.07%)
  • ASX200 SPI Futures (Dec Contract): 6,167 (+7)
  1. NAFTA lives on through the US-Mexico-Canada Agreement. Officials reached a breakthrough on trade in 11th-hour negotiations Sunday night, calming fears the trilateral deal could be scrapped. Automaker shares, including GM(+1.3%) and Ford(+1%), rose following the news.
  2. But trade negotiations between Washington and Beijing remain deadlocked. After imposing another round of tariffs on each other last month and cancelled high-level trade talks, Trump signalled his administration won’t be heading back to the negotiating table anytime soon. “Can’t talk now, because they’re not ready,” he said of Beijing during trade remarks at the White House.
  3. Crude oil surges again.Both front-month WTI and Brent contracts closed at the highest level since late 2014, adding around 3% for the session. Optimism over the US-Mexico-Canada Agreement on trade, as well as lingering supply-side concerns ahead of looming sanctions on Iran that will begin in early November, were cited as catalysts behind the move.
  4. The global manufacturing sector is starting to splutter, especially in emerging markets. The JP Morgan-IHS Markit Global Manufacturing PMI fell to a 22-month low of 52.2 in September. Activity levels have now improved at a slower pace in each of the past five months. “The US remained a bright spot,” IHS Markit said.
  5. The Reserve Bank of Australia (RBA) will announce its October monetary policy decision later today. There’s next to no chance the RBA will move the cash rate from its current level of 1.5%. Given it’s been less than a month since the Board last met, and with limited new information on wage and inflationary pressures released during this period, there’s unlikely to be many major surprises in the accompanying monetary policy statement. It will be released at 2.30pm AEST.
  6. Chinese markets are closed for a week. National Day holidays kicked off on October 1.

And a look at the upcoming economic calendar:

  • RBA October interest rate decision
  • UK construction PMI
  • Eurozone producer price inflation
  • US Fed Chair Jerome Powell speech
  • US API crude oil inventories
  • GDT fortnightly dairy auction

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.