To the scoreboard:
Dow: 23,447.12 +173.16 (+0.74%)
S&P 500: 2,568.48 +3.50 (+0.14%)
AUD/USD: 0.7776 -0.0032 (-0.41%)
ASX200 SPI futures (December contracts): 5,898 (+15)
1. It’s CPI day: The quarterly inflation report is arguably the most important data release in Australia. The median forecast is for headline inflation to rise by 0.8%, leaving the annual growth rate at 2.0%. David Scutt’s 10-second guide will be required reading ahead of the 11:30am AEST release.
2. Bond markets stirring: Bonds were sold again overnight, with flash PMI data for the US and Europe supporting the view that the global growth backdrop is strengthening. Yields on benchmark US 10-year bonds — which move inversely to their price — are trading above 2.4% for the first time since May:
3. Aussie weaker ahead of CPI: Traders drove the Aussie back below US78 cents yesterday evening and it remains lower against both the USD and the Euro. The US dollar index traded flat as the greenback was mixed against the major currencies, with the Euro holding its ground ahead of tomorrow night’s ECB meeting. Later tonight the UK has Q3 GDP figures and the Bank of Canada will make its October interest rate announcement.
4. US stocks climb again: The Dow hit yet another record high overnight on some positive earnings results, led by Caterpillar which smashed expectations. That’s got ASX200 futures traders confident of a push above 5,900, with Wesfarmers set to report Q1 sales today . And if you’re worried about over-exuberance in US stocks, buying protection is cheap at the moment.
5. Bitcoin splits and falls: Bitcoin had a rough session overnight following the latest split in the currency, as a new version called Bitcoin Gold commenced trading. While Bitcoin fell, money moved into other large cryptos, with Iota Coin up almost 20% overnight:
6. Base metals climb again: It was another good night for copper, zinc and nickel, as sources told Reuters that a private Chinese investor may be behind the recent bullish action in copper which has driven prices to their highest level since 2014. Iron ore was little changed while benchmark crude oil climbed 1.6% to $58.26 as OPEC signaled that it may look to extend supply cuts.
Enjoy your day, I’m on Twitter @Mr_SamJacobs.