To the scoreboard:
Dow Jones industrial average: 23,932.76 -572.46 (-2.34%)
S&P 500: 2,604.47 -58.37 (-2.19%)
AUD/USD: 0.7678 -0.0005 (-0.09%)
ASX 200 SPI futures: 5,739 (-33)
1. ASX200 set to fall: Traders hit the sell button when US markets opened on Friday, and those losses look likely to extend to the local market today. The move was largely in response to the Trump administration’s announcement that it’s considering a further $US100 billion in tariffs, as markets assess the ongoing threat of a US-China trade war.
2. Also on Friday night US employment data missed expectations, adding 103,000 jobs to 193,000 forecast although the US jobs market is still in sound shape and wage growth edged higher.
3. Trade tensions and the miss in employment data contributed to a round of weakness in the USD after the US dollar index hit a three-week high on Thursday. That provided support to the Aussie dollar, which was little-changed against the greenback despite broader risk-off sentiment on Friday night.
4. The risk-off tone was evidenced by demand for bonds, as 10-year US bond yields fell six basis points to 2.78%. Save-haven currencies the Japanese yen and Swiss franc both found a bid and gold also rose.
5. Bitcoin climbed back above $US7,000 over the weekend amid reports that two Wall Street firms — including the hedge fund run by billionaire George Soros — are looking to get into the market for cryptocurrencies.
6. The week ahead: The key economic events in Australia this week will be led by NAB business survey on Tuesday (11:30am AEDT) and the RBA’s semi-annual financial stability review on Friday. Looking abroad, markets will be focused on US inflation data on Wednesday night. The full calendar is here.
Have a great week.