To the scoreboard:
Dow: 22,158.18 +39.32 (+0.18%)
S&P 500: 2,498.37 +1.89 (+0.08%)
AUD/USD: 0.8018 -0.0002 (-0.02%)
ASX200 SPI futures (Sept contracts): 5,747 (+1)
Iron ore benchmark 62% fines: $US75.32/t (-0.37%)
1. US dollar gets on the move: The US dollar index climbed by 0.6% despite a small miss in monthly producer price inflation (PPI), as the greenback gained ground against all major currencies. That pushed the euro through recent support below $US1.19, and broader US dollar strength also weighed on the Aussie — it’s back below US80 cents ahead of employment data today.
2. It’s jobs day: Monthly employment data for August will be released at 11:30am AEST. David Scutt’s 10-second guide has everything you need to know. Later tonight, the Bank of England will make its interest rate announcement. No change is expected to be made to the 0.25% rate after weak wage data. Markets will be focused on US CPI inflation data for August, with core inflation forecast to rise by 1.6%.
3. Stocks at new highs, again: Global stocks continued their solid run, as the S&P500 edged up to set another record high. As US stocks resume their climb, Societe Generale have issued another reminder to clients to be aware of the perils of low volatility. Despite the positive sentiment, the ASX200 met technical resistance yesterday as it pushed towards 5,800 and finished the session lower.
4. Bond sell-off continues: The yield on benchmark US 10-year treasuries — which move inversely to their price — climbed to 2.19%. They’re now up around 18 basis points from Friday’s lows, with some discussion in markets that Donald Trump’s agreement with the Democrats last week may provide a platform for the administration’s attempts to pass at least some version of tax reform. Australian 10-year yields are also back above 2.7% for the first time in two weeks.
5. Rough week for cryptos: Bitcoin dipped again overnight, and it’s now down 11.5% since JP Morgan CEO Jamie Dimon called the cryptocurrency a fraud. Although the Bitcoin community is fighting back. The sell-off has extended to other big cryptos such as Ethereum, Dash and Litecoin. That’s as another JP Morgan executive — this time the head of global quantitative strategy — said in a note to clients yesterday that cryptocurrencies have some similarities to a “fraudulent pyramid scheme“.
6. Commodities wrap: Benchmark crude oil closed above $US55.16 and is at its highest level since April, with an oil market report from the International Energy Agency forecasting a solid demand outlook through 2018. Iron ore dipped slightly and base metals also continued to slide from their recent record highs, with copper, zinc and nickel all lower.
Enjoy your day, I’m on Twitter @Mr_SamJacobs.