To the scoreboard:
Dow: 24,231.59 -40.76 (-0.17%)
S&P 500: 2,642.22 -5.36 (-0.20%)
AUD/USD: 0.7596 -0.0018 (-0.24%)
ASX200 SPI futures (December contracts): 5,991 (-6)
1. Wild session for global stocks on Friday: ASX200 futures traders are betting on a slightly lower open to start the week, although big miners may find support from stronger commodity prices. That’s after the S&P500 fell by 1.6% on Friday amid political turmoil stemming from the Russia investigation, before rallying on news Senate Republicans had the numbers to pass the Trump administration’s proposed tax-cut bill.
2. US bonds rally: Developments in the Russia investigation and sweeping tax reform — two competing political forces for markets — also drove volatility in bond markets on Friday. Along with further Brexit discussion on the schedule, it sets up a degree of political uncertainty to start the week.
3. Commodity bloc finds a bid: The Canadian dollar surged by 1.6% against the USD on Friday after employment data smashed expectations. The greenback has opened stronger this morning after being weighed down by political turmoil to end the week. That’s pushed the AUD back below US76 cents in early trade, following a broad rally on Friday as commodity prices rose.
4. The week ahead: There’s a data deluge on the domestic calendar to kick off the new month, led by Q3 GDP figures on Wednesday. Globally, markets will be focused on political developments and US employment data on Friday. The weekly diary is here.
5. Money rolls in for Bitcoin: It’s full steam ahead for the Bitcoin juggernaut, with prices now pushing $US12,000 this morning on the Bitfinex exchange. And the CME announced on Friday that it will launch Bitcoin futures trading on December 18. That’s despite some crypto-chaos on Bitfinex last week, with reports that traders lost thousands in a flash-crash which automatically liquidated positions.
6. Battle of the experts on interest rates: Calls from the OECD and former RBA board member Warwick McKibbin for Australia’s central bank to raise interest rates have been rebuffed by other expert strategists, the AFR Reports. UBS’ head of fixed income Anne Anderson and Westpac chief economist Bill Evans both dispute the assertion, arguing the RBA will be more focused on persistently low inflation.
Have a great day.