To the scoreboard:
- Dow: 25,115.76 +241.12 (+0.97%)
- S&P500: 2,711.74 +29.11 (+1.09%)
- AUD/USD: 0.7072 -0.0026 (-0.37%)
- ASX SPI futures (December contracts): 5,824 (+26)
1. Global stocks rallied overnight, as company earnings beat expectations in the US and Europe and the NASDAQ rose more than 2%. It capped off a rocky month of October which saw the S&P500 fall by more than 7%, while the FTSE All-World Stock Index finished with its worst monthly result since 2012.
2. The US dollar index rose to the highest level since June 2017 amid continued weakness in the euro, even though data showed Eurozone inflation accelerated again in October. “Month-end rebalancing flows reportedly also played a role” in USD strength, Westpac’s Sean Callow said.
3. In the latest sign of a tightening US labour market, ADP private sector payroll data showed companies added 227,000 jobs in October (forecast 189,000). Labor Department data also showed US employment costs rose more than expected in the September quarter. In response, benchmark US 10-year bond yields rose by four basis points to 3.15%.
4. The NAB has reported a 14.2% fall in cash profits for the 2018 financial year, due largely to restructuring costs of $755 million and customer remediation payouts of $360 million.
5. Oil prices continued to slide amid continued concerns about the global demand outlook. Brent crude is back below $US75 a barrel this morning, while iron ore’s two-week winning streak came to an end following a fall in steel prices and disappointing economic data out of China.
6. And Bitcoin notched up its 10th birthday yesterday. Prices edged higher off weekly lows overnight to around $US6,340. Bitcoin’s price has been steady in recent months, but it hasn’t always been that way. Here’s a brief look back at BTC’s crazy 10-year history.
Today’s economic calendar:
- October house price data from CoreLogic.
- September trade balance figures from the ABS.
- Ai Group manufacturing PMIs for October.
- ANZ job ads.
- Caixin manufacturing data out of China.
- Bank of England interest rates announcement.
- ISM manufacturing data for October in the US.
Have a great day.