To the scoreboard:
Dow: 23,586.31 +155.98 (+0.67%)
S&P 500: 2,597.92 +15.78 (+0.61%)
AUD/USD: 0.7578 +0.0028 (+0.37%)
ASX200 SPI futures (December contracts): 5,994 (+15)
1. ASX200 pointing higher: The local index looks set to climb again, as gains in US tech stocks helped drive the S&P500 to another record high following yesterday’s bullish 2018 forecasts by Wall Street analysts.
2. Aussie takes a breather: Traders took their foot off the pedal and the Aussie caught a bid overnight after days of selling pressure. It posted gains across the board and is at US75.8 cents this morning amid broader US dollar weakness. The euro traded in a narrow range overnight after sharp swings in the previous session.
3. More action in the smaller pairs: While major currencies were steady overnight, there was activity elsewhere. The Korean Won continued its recent rally while the USD lost more than 1% against the Mexican Peso following the latest round of NAFTA negotiations.
4. Flat as a pancake: The yield curve on US government bonds continues to flatten out. Yields on shorter-term US government debt rose again overnight and at 1.77% this morning, the yields on US 2-year bonds are trading higher than their Aussie counterparts for the first time since 2000. Meanwhile, it’s shaping up as another rough quarter for Wall Street bond traders.
5. The day ahead: Domestically there’s September construction data from the ABS (11:30am AEDT), where the focus will be on changes to activity in the residential component. US Fed Chair Janet Yellen is scheduled to speak on a panel at 10am this morning Sydney time, then tonight there’s the UK budget and the US has October figures for durable goods orders.
6. Bitcoin battles back: Prices reached another record high above $US8,300 overnight, after a broader crypto selloff yesterday following news of a $US30 million hack on another cryptocurrency called Tether.