6 things Australian traders will be talking about this morning

Photo: Banaras Khan / AFP / Getty Images

Good morning.

To the scoreboard:

Dow: 23,391.57 -48.13 (-0.21%)
S&P 500: 2,575.92 -8.92 (-0.35%)
AUD/USD: 0.7631 +0.0008 (+0.10%)
ASX200 SPI futures (December contracts): 5,949 (-27)

1. Euro storms ahead: Strong German GDP data saw the euro surge by more than 1% against the US dollar overnight. The Aussie is also holding up against the greenback as global markets traded around another bumper result in the NAB business survey. Here’s the move in the euro:

Source: Investing.com

2. Oil takes a dive: Benchmark crude fell more than 2% to $US62 a barrel, as part of a broader commodity selloff after Chinese economic data missed expectations. Base metals were also sharply lower, led by nickel, which dropped more than 5% while futures markets are pointing to similar losses for iron ore.

3. Equities shaky: A stronger currency weighed on European stocks, which fell for the sixth straight day while the fall in oil sent global energy stocks lower overnight. With a weak global lead, it’s looking like another rough session ahead on the local market, with futures traders marking the ASX200 down again after yesterday’s heavy fall.

4. Huge day of data: There’s monthly consumer confidence data from Westpac at 10:30am AEST, before the key data release for currency traders at 11:30am AEST — the quarterly wage price index from the ABS. David Scutt’s 10-second guide is here. There’s also Japanese GDP during Asian trade, then UK wages data tonight followed by the main data event on global markets — US inflation figures for October.

5. Bonds catch a bid: Benchmark 10-year government bond yields for the US and Germany both fell overnight amid a bit more of a risk-off tone as equities dipped. Australian government bond yields also dipped across the curve, although the yield shorter-term US debt – 3-month, 6-month and 2-year bonds — continued to edge higher.

6. Hedge fund eyes Bitcoin: Bitcoin continued to rebound from the weekend price crash overnight, creeping higher to around $US6,500. Meanwhile, a $US95 billion UK hedge fund says it will look at including the cryptocurrency in its investment portfolio once bitcoin futures trading is approved on the CME, while a Chicago firm is setting up bitcoin trading operations in Singapore.