To the scoreboard:
Dow: 24,202.60 +669.40 (+2.84%)
S&P 500: 2,659.12 +70.86 (+2.74%)
AUD/USD: 0.7749 +0.0050 (+0.65%)
ASX200 SPI futures (June contracts): 5,811 (+33)
1. US stocks feel the rush: It might not be a trade war between the US and China after all — perhaps more of “trade dispute“. Following reports Chinese officials had begun negotiations in the wake of the US tariff announcement, the Dow responded overnight with the third-biggest daily points gain of all time — although UK and European stocks fell.
2. And bitcoin gets crushed: Prices are back under $US8,000 this morning and most major alt-coins are now trading at 2018 lows. Although Chicago’s Cboe exchange still thinks a bitcoin Exchange Traded Fund is a good idea. And this BI report on shady dealings in initial coin offerings is worth a read.
3. USD can’t take a trick: No matter the catalyst, US dollar selling has been the go-to move in currency markets in recent months and the greenback responded to US-China trade negotiations with another round of weakness. Its only gain was against the yen which fell sharply across the board as money moved back out of the safe-haven currency.
4. Despite the risk-on tone in global markets, gold continued its recent rally and edged higher back above $US1,350 an ounce. And Goldman expects gold to outperform amid lingering risk of a stock market correction. US 10-year bond yields rose four basis points to 2.85% overnight.
5. The US-China trade tensions have weighed on other base metals though, as copper fell below $US3 a pound yesterday and stayed there overnight. It’s now down by around 7.5% over the last month. Iron ore fell for the third straight day — prices are now 19% lower since March 1 — as China’s steel market remains bearish.
6. And oil edged lower but benchmark crude remains above $US70 a barrel after the launch of an oil futures market in China — the world’s biggest oil importer — got off to a roaring start yesterday. The futures contracts are denominated in the Chinese renminbi and are predominantly for high-sulphur crude used by Chinese refineries.
Have a great day.