To the scoreboard:
Dow: 23,377.24 +28.50 (+0.12%)
S&P 500: 2,575.26 +2.43 (+0.09%)
AUD/USD: 0.7655 -0.0033 (-0.43%)
ASX200 SPI futures (December contracts): 5,912 (+24)
1. Currencies mixed: The UK pound had another strong session against the greenback ahead of a likely rate hike by the Bank of England tomorrow, while the Euro and US dollar were both supported by good data. The Aussie is under pressure this morning ahead of a busy day of domestic and global data releases.
2. Bitcoin goes mainstream: Overnight the CME Group — the Chicago-based derivatives exchange which handles trillions of dollars of contracts annually — changed its mind and approved the use Bitcoin futures products later this year. It marks a key step in Bitcoin’s entry into regulated financial markets. A short time ago, Bitcoin was trading around record highs above $US6,300.
3. Data today: CoreLogic has October house price data at 10:00am AEST amid signs of a housing slowdown. There’s also Ai Group manufacturing PMIs at 9:30am AEST. New Zealand has Q3 unemployment data/ average hourly earnings and China has non-government Caixin manufacturing PMIs. Later tonight, the US Fed makes its November interest rate announcement (no change expected), and there’s a raft of global manufacturing PMIs to start the month.
4. Stocks push higher: Both European and US markets climbed on more solid earnings results. It’s got ASX futures traders confident of a buoyant session on the local market, on the 10-year anniversary of the indexes all-time high when it reached 6,851 on November 1, 2007.
5. Cash injections: While earnings are helping to support stock prices, the current all-time highs and low market volatility also need to be considered within the context of the record amount of central bank stimulus in recent years. This insight from Joe Ciolli describes the flow-on effects of how all that money has impacted markets.
6. Larry Fink speaks: The CEO of Blackrock — one of the world’s biggest asset managers — spoke to the AFR about China and the Australian economy. On housing, Fink said Australia’s biggest problem is the amount of leverage in real estate, but he doesn’t see a housing bubble.
Have a great day.