To the scoreboard:
- Dow: 24,583.42 -608.01 (-2.41%)
- S&P500: 2,656.10 -84.59 (-3.09%)
- AUD/USD: 0.7062 -0.0030 (-0.42)
- ASX SPI futures (December contracts): 5,700 (-94)
1. Global markets were gripped by another round of fear overnight, as US stocks got sold off sharply into the close. The S&P500 fell for the sixth straight session and has now wiped out its 2018 gains. ASX futures are down almost 100 points ahead of this morning’s open.
2. The tech-focused NASDAQ index lost almost 5% to fall into a technical correction. A day after Caterpillar downgraded its outlook on trade fears, concerns shifted from US industrial activity to the chip-making sector as the Philadelphia SE semiconductor index slumped more than 6% to a one-year low.
3. The euro fell to a 2-month low as weak PMI data raised concerns about economic activity in the Eurozone. With markets in risk-off mode, the US dollar rose against most of the major pairs except for the safe-haven Japanese yen. “AUD/USD held up well considering the global mood,” Westpac’s Sean Callow said.
4. The flight for safety drove demand for bonds, as benchmark US 10-year bond yields fell by almost six basis points to 3.11%. In an interview with the WSJ, President Trump fired another warning shot at the Fed over rising interest rates.
5. Crude oil edged lower to fall below $US76 a barrel, after prices slumped by more than 4% the previous day. Gold and copper prices were little changed while iron ore shook off the volatility in global markets as prices rallied to fresh multi-month highs.
6. The Bank of Canada raised interest rates by 25 basis points to 1.75%, as expected. The Canadian dollar strengthened as the Bank of Canada upgraded its projections for business investment and exports, following the completion of a new US trade agreement earlier this month.
BONUS ITEM: Tesla shares surged by 10% in after-hours trade after the company reported a surprise Q3 profit.
Here’s a look at today’s economic calendar:
- New Zealand trade data.
- US durable goods orders and jobless claims.
- European Central Bank monetary policy meeting.
Business Insider Emails & Alerts
Site highlights each day to your inbox.