To the scoreboard:
Dow: 22,641.67 +84.07 (+0.37%)
S&P 500: 2,534.58 +5.46 (+0.22%)
AUD/USD: 0.7833 +0.0006 (+0.08%)
ASX200 SPI futures (December contracts): 5,694 (+15)
1. USD rally slows for now: After climbing early in overnight trade, the US dollar index finished the session lower as traders assess whether the latest rally is grounds for another push higher. That reversal has helped push the euro, yen, and AUD slightly higher after yesterday’s falls, when the Aussie briefly hit a three-month low following the RBA’s interest rate announcement.
2. Global stocks remain elevated: US stocks continue edging up to new all-time highs, with lingering optimism around the Trump administration’s tax cut proposals helping to support sentiment. Warren Buffett said overnight that the chances of the tax cuts being passed this year are “higher than most people think“.
3. Spain tensions running high: Spanish bond yields remain elevated near three-month highs in the wake of the Catalonia’s independence vote, while the euro is higher this morning after it fell below $US1.17 yesterday for the first time since mid-August. Spanish king Felipe VI made a rare TV appearance overnight where he criticised the Catalan government.
4. Commodities wrap: Gold edged back above $US1,270 this morning, but remains under pressure from reduced North Korea tensions, a positive global growth backdrop and the recent strength in the USD. Oil dipped slightly while it was a good session overnight for base metals — zinc hit a 10-year high and copper and nickel also climbed.
5. Lloyd keeps an eye on Bitcoin: Bitcoin prices are holding steady at around $US4,200 so far this week, and Goldman Sachs CEO Lloyd Blankfein said he’s “still thinking” about the cryptocurrency in a tweet this morning. While Blankfein is yet to make up his mind, the Wall Street Journal reported on Monday that Goldman Sachs may be looking to set up a Bitcoin trading operation.
6. Data today: It’s a quiet day domestically, with monthly services PMI data from CBA and the AiGroup. Then the PMI deluge will continue for the US, UK and Europe while the US also has the ISM non-manufacturing PMI report, and US Fed committee chair Janet Yellen will speak overnight. Later today the Bank of India is scheduled to make its monetary policy announcement, with no change expected.