To the scoreboard:
Dow: 23,157.60 +160.16 (+0.70%)
S&P 500: 2,561.26 +1.90 (+0.07%)
AUD/USD: 0.7847 +0.0002 (+0.03%)
ASX200 SPI futures (December contracts): 5,868 (-2)
1. It’s jobs day: Monthly employment figures from the ABS will be released at 11:30am AEST, with the market forecasting more jobs to be added in September. The AUD is little-changed ahead of the release. David Scutt’s 10-second guide has everything you need to know here. Early this afternoon there’s also a swathe of data from China including Q3 GDP figures.
2. Stocks still at records: The recent pattern continues for US stocks — new record highs amid low volatility. And traders are bullish on US banks while Treasury Secretary Steve Mnuchin argued that stocks will fall heavily if the Trump administration tax cut bill doesn’t pass. The ASX200’s recent rally paused yesterday and futures traders are predicting another flat session.
3. US dollar mixed: The greenback dipped against the euro and pound, and housing starts fell to a one-year low, but continued its recent strength against the yen as the Bank of Japan reiterated that it would maintain ultra-easy monetary policy settings even as the economy improves.
4. Money moves back out of cryptos: Bitcoin fell as much as 9% before rallying back above $US5,400, still lower on the day. Off-shoot Bitcoin Cash fell more than 10% and most of the other large crytocurrencies lost value. Meanwhile, the latest markets experts to weigh in is firmly in the Bitcoin bull camp — Tom Lee from Fundstrat is calling a move to $US25,000 within five years.
5. Bonds sold again: The yield on benchmark US 10-year treasuries — which moves inversely to their price — climbed another four basis points overnight to 2.34%. Shorter term US 2-year treasuries remain elevated at a nine-year high, which is keeping the yield curve between 2-year and 10-year debt at its flattest level since the middle of last year.
6. Commodities wrap: Iron ore futures dipped more than 3% overnight ahead of key data from China today, while benchmark crude oil closed just off its recent high at more than $US58 a barrel. In base metals, zinc rose while copper and nickel both fell. And with a steady global growth backdrop seeing more risk appetite, gold fell to a one-week low of $1,280 an ounce.