6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

Dow: 26,025.27 -90.38 (-0.35%)
S&P 500: 2,798.42 -4.14 (-0.15%)
AUD/USD: 0.7996 +0.0029 (+0.36%)
ASX200 SPI futures (March 2018 contracts): 5,970 (+18)

1. Bond yields break higher: The move was synchronised across global markets amid an increasingly positive economic growth backdrop, helped by China’s solid Q4 GDP figures last night. Benchmark US 10-year treasuries are now holding above 2.6% — just shy of the March 2017 high of 2.63%.

2. AUD stays resilient: The US dollar remains mired in a slump, as concerns grow that a proposed bill to avoid a government shutdown won’t be passed in time. The Aussie climbed back above US80 cents overnight, after a strange round of selling yesterday in the wake of the December jobs report which once again beat expectations.

3. ASX futures traders are betting the local market will recover some ground today after three straight falls. That’s despite a soft lead from global markets as US stocks cooled off, although Apple stock rose after the company announced plans to bring back its $US250 billion overseas cash pile back to America.

4. Crypto rebound continues: Bitcoin is pushing towards $US12,000 and all the major alt-coins continue to recover ground this morning. Morgan Stanley has now joined Goldman Sachs in clearing bitcoin futures trades for clients, while Fundstrat’s Tom Lee said this week’s big selloff has given rise to the biggest buying opportunity of 2018.

5. Business Insider sat down with Jim McCaughan, CEO of $US445 billion fund manager Principal Global Investors. McCaughan said the rise of technology was underpinning the global economic paradigm of solid growth with low inflation. You can read the transcript or watch the full interview here.

6. One eye on the weekend: There’s no headline data releases scheduled today on global markets, but key political events will be worth watching over the weekend. Goldman Sachs have assessed a 35% probability the US government will be unable to extend the debt ceiling — which could lead to a shutdown — while on Sunday Germany’s SPD party will vote on whether it will agree to form a ruling coalition with Angela Merkel’s government.

Have a great weekend.

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