To the scoreboard:
- Dow: 25,527.07 +112.97 (+0.44%)
- S&P500: 2,837.44 -8.63 (-0.30%)
- AUD/USD: 0.7379 -0.0077 (-1.03%)
- ASX SPI futures (September contracts): 6,224 (+27)
1. US stocks were mixed overnight after Facebook took a historic tumble post-earnings. Automakers led European stocks higher as markets digested the possibility of cooling trade tensions between the US and the European Union.
2. The European Central Bank confirmed it plans to halt asset purchases at the end of this year. ECB President Mario Draghi added that market pricing for the next rate increase — current forecast for the second half of next year — is well aligned with the central bank’s view.
3. The euro dipped back below $US1.17 after the ECB meeting, as the US dollar gained ground against all the major pairs — helped by a solid print for durable goods orders. That weighed heavily on the Aussie, which slumped by more than 1% for the session and is back below US74 cents this morning.
4. In the wake of Facebook’s huge fall, other US tech stocks are performing better in after-hours trade. Amazon is higher following a record net-income result, while shares in Aussie tech giant Atlassian have surged by around 16% after it announced the sale of its messaging service to Slack.
5. Oil prices got a boost after Saudi Arabia suspended shipments from the Red Sea following an attack by Houthi separatists in Yemen. A stronger USD pushed gold back towards one-year lows, while iron ore continues to drift higher. Bitcoin is back under pressure after the US SEC rejected another application for a bitcoin ETF.
6. And the US goods trade deficit jumped 5.5% in June to $68.3 billion. It had narrowed in April and May as foreign markets stocked up on American goods that were about to be hit by tariffs.
Here’s a look at today’s economic calendar:
- Japan inflation data — now of key importance ahead of a potential policy-shift announcement by the Bank of Japan on Tuesday.
- Australia has PPI data for the June quarter.
- Tonight will be all about US GDP, with some analysts forecasting strong annual growth of more than 4% in Q2.
Have a great weekend.
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