To the scoreboard:
- Dow: 25,822.29 +63.60 (+0.25%)
- S&P 500: 2,862.96 +5.91 (+0.21%)
- AUD/USD: 0.7367 +0.0027 (+0.37%)
- ASX200 SPI futures (September contracts): 6,240 (-19)
1. Global risk appetite improved overnight, as US stocks rose to a new record high before closing slightly lower. But after political uncertainty sparked heavy falls on the ASX yesterday, futures traders have marked the local index down by another 19 points this morning.
2. US stock futures are also pointing lower following reports that Michael Cohen, Donald Trump’s long-time lawyer, has pled guilty to eight federal crimes including an illegal campaign contribution “at the direction of the candidate” — widely believed to be President Trump.
3. US 10-year bond yields rose slightly while the US dollar continued its retreat from recent highs. “AUD/USD edged higher overnight because of USD weakness but struggled to kick higher at 0.7388 US cents (50-day moving average),” said CBA’s Joseph Capurso.
4. The UK pound rose by a full cent against the USD amid optimism about the UK economy. The gains came despite comments from EU Brexit negotiator Michel Barnier, who said the UK would have to abide by the EU’s single market rules before a trade deal can be agreed to.
5. In commodities, copper rose for the fourth straight day and gold found more support amid USD weakness. Oil prices also posted their fourth straight gain, amid a large draw in US API inventories and continued tensions between the US and Iran.
6. And US bank JP Morgan is getting into the world of low-cost stock trading, with a new investment app that offers 100 free trades a year. The announcement wiped more than $US5 billion off the market cap of listed online brokers.
Here’s a look at today’s economic calendar:
- Speech from RBA deputy governor Guy Debelle called “Low Inflation” (1:10pm AEST).
- Westpac Leading Index.
- Q2 construction work from the ABS.
- Board minutes of the US Federal Reserve’s August meeting (4am AEST).
- Canada retail sales.
Have a great day.
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