6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 26,627.48 -200.91 (-0.75%)
  • S&P 500: 2,901.61 -23.90 (-0.82%)
  • AUD/USD: 0.7077 -0.0028 (-0.39%)
  • ASX200 SPI futures (December contracts): 6,150 (-27)

1. US stocks got hit hard overnight as yesterday’s global bond rout weighed on risk sentiment. It followed an equally rough session for Asian stocks, and ASX futures are pointing lower this morning.

2. Benchmark US 10-year bond yields reached a new seven-year high of 3.23%, before edging back to around 3.19%. As trading volumes in global bond markets surged, the yields on both UK and German 10-year debt also rose sharply.

3. All-important US employment data will take centre stage tonight, as evidence of strong jobs growth and higher wages could see bond yields rise again. The bond market selloff on Wednesday night was partly due to strong ADP payroll figures, which raised expectations for a bumper jobs print later this evening.

4. The Aussie dollar is still under pressure after getting hammered back below US71 cents yesterday. The US dollar index held steady overnight as the euro and the UK pound both edged higher, although it was another rough session for emerging market currencies.

5. Oil prices pulled back after climbing above $US86 on Thursday — the highest level since October 30. Gold is steady at $US1,200 an ounce while prices for other base metals — copper, zinc and nickel — all fell sharply.

6. Amid increasing volatility in global markets, cryptocurrencies held steady overnight. Bitcoin led gains among the major coins as it climbed back above $US6,500.

Here’s a look at today’s economic calendar:

  • August retail sales data in Australia (11:30am AEST). Median forecast is for a gain of 0.3%.
  • September employment numbers in the US. Monthly growth of 185,000 forecast.
  • Unemployment data in Canada.
  • Producer prices and factory orders in Germany.
  • Trade data for the US, Canada and France.

Have a nice weekend.

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