To the scoreboard:
Dow: 24,651.74 +143.08 (+0.58%)
S&P 500: 2,675.81 +23.80 (+0.90%)
AUD/USD: 0.7647 -0.0020 (-0.26%)
ASX200 SPI futures (December contracts, 20 minute delay): 6,026 (+29)
1. US stocks rose strongly to end the week after key Republican Senators reversed course and cleared the way for tax cut legislation. Here’s a rundown of what’s in the final version of the tax bill. Meanwhile, ASX futures traders are betting on a solid rise for the local index this morning after Friday’s falls.
2. AUD finds resistance: The US dollar rose slightly in the wake of the tax cut news, but it’s still been unable to make a meaningful break higher as strength remains in the euro for now. US bond yields were little-changed. The Aussie dollar pushed higher but found resistance at its 200-day moving average on Friday, closing up 1.3% for the week.
3. Iron ore futures are storming ahead: Benchmark 62% fines closed just off their recent highs to end the week and iron ore futures are up 6%, following steel futures climbing higher amid reports of supply shortfalls. In base metals, gold is holding just above its recent five-month low while copper rose by more than 2% to end the week.
4. Data today: Treasurer Scott Morrison will announce the Mid-Year Economic and Fiscal Outlook (MYEFO), which is likely to show a sharp fall in the government’s debt projections — thus increasing the possibility of income tax cuts. There’s also new motor vehicle sales in Australia, trade data from Japan and Singapore with Eurozone inflation figures later tonight.
5. Bitcoin liquidity: Bitcoin is holding near record highs above $US19,000, with futures trading on the CME exchange set to commence later this morning. But some investors have reported they’re finding it difficult to sell their Bitcoin, and lack of liquidity could exacerbate falls if the market turns.
6. Equity bulls at the gate: US stocks are at record highs amid a positive global growth backdrop, but JP Morgan’s chief quantitative strategist says the positive impact of tax cuts is yet to be priced in. Here’s a roundup of expert prediction for the S&P500 in 2018.
Have a great day.