Good morning and happy Friday.
To the scoreboard:
- Dow: 25,380.74 +264.98 (+1.06%)
- S&P500: 2,740.37 +28.63 (+1.06%)
- AUD/USD: 0.7200 +0.0117 (+1.65%)
- ASX SPI futures (December contracts): 5,813 (+5)
1. Global stocks kicked off November on strong note, as more company earnings results beat expectations in the US and the UK. Markets also got a boost from some positive comments by President Trump on trade with China.
2. Positive risk sentiment and some good news on trade saw the Aussie dollar rip higher again overnight. It’s sitting at US72 cents this morning – a one-month high — after surging in Asian trade following yesterday’s bumper trade surplus.
3. And the UK pound was the other big mover on Brexit news, after reports that negotiators secured a tentative deal on how the financial services industry will operate once Britain leaves the EU. The pound immediately pushed back above the $US1.30 mark, a gain of around 2%.
4. Oil prices slumped by 3% overnight, amid increasing concerns that global supply will outpace demand in the months ahead. Brent crude oil is now off 17% from its October highs, while US WTI prices fell to their lowest level since April.
5. Apple reported 4th quarter earnings this morning. Guidance for the US holiday season was at the low end of expectations, and iPhone sales were flat in Q4. Apple shares fell by around 4% in after-hours trade. Business Insider has all the live updates here.
6. It’s retail sales day: Australia will get another update on the consumption outlook with September retail sales data from the ABS (11:30am AEDT). The forecast is for sales growth of 0.3%, after results missed expectations over the previous two months. Get the full preview here.
Here’s the rest of today’s economic calendar:
- Quarterly PPI data in Australia.
- Eurozone manufacturing PMIs.
- All-important US employment data for October (forecast: 189,000 jobs added).
- US trade data.
- Canada unemployment rate.
Have a great weekend.