6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 25,706.68 -91.74 (-0.36%)
  • S&P500: 2,809.21 -0.71 (-0.03%)
  • AUD/USD: 0.7108 -0.0033 (-0.46%)
  • ASX SPI futures (December contracts): 5,902 (-25)

1. Some more volatility returned to US markets overnight, as the minutes from the US Fed’s September board meeting were deemed to be more hawkish in nature. Stocks edged lower, the US dollar extended its early gains and benchmark US 10-year bond yields rose back above 3.2%.

2. The minutes showed voting committee members were unanimous in their decision to raise interest rates. Ian Shepherdson from Pantheon Macroeconomics said the minutes also revealed concerns among officials that the tightening labor market “is a threat to future inflation and might require a period in which rates rise above neutral”.

3. It’s jobs day: The median forecast looks for the Australian economy to add 15,000 jobs in September, after a strong gain in August. David Scutt’s 10-second guide has everything you need to know. Ahead of the employment report, the AUD is lower this morning as risk appetite waned in overnight trade.

4. Oil prices edged lower again as weekly inventory data showed US crude stockpiles rose by far more than expected — the fourth straight week of increases. Iron ore’s rally continued, while base metals were little-changed. Bitcoin is still holding steady at around $US6,500.

5. Italian 10-year government bond yields rose 12 basis points to 3.58%, amid lingering concerns that European Council will reject Italy’s draft budget because it doesn’t meet EU spending guidelines.

6. And a regulatory filing by Tesla shows Elon Musk plans to by $20 million worth shares in the company “during the next open trading window”. Business Insider then reported that Tesla’s vice president of manufacturing has left the company. Shares rose more than 2% following the share-purchase announcement but finished 1.74% lower.

Today’s economic calendar:

  • September employment report from the ABS (11:30am AEST).
  • Japan trade balance.
  • UK retail sales.
  • US initial jobless claims.

Have a great day.

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