To the scoreboard:
- Dow: 24,307.18 +35.77 (+0.15%)
- S&P500: 2,726.71 +8.34 (+0.31%)
- AUD/USD: 0.7339 -0.0060 (-0.81%)
- ASX SPI futures (September contracts): 6,158 (+21)
1. US stocks erased losses overnight, eking out a small gain after President Trump said the US would be meeting with Europe soon to discuss trade. So despite another shocking day for Chinese stocks yesterday, ASX futures are pointing higher ahead of this morning’s open.
2. But lingering international trade tensions still remain, as the EU warned it could still hit the US with tariffs on $US300 billion of goods. Meanwhile, Canada’s latest tariffs against the US have just come into effect while President Trump seemed to signal that a US exit from the World Trade Organization is possible unless changes are made.
3. The Aussie dollar’s strength on Friday proved to be short-lived, as trade tensions along with overnight falls in copper, oil and iron ore weighed on the commodity bloc currenies. The AUD was hardest hit and finished almost 1% lower for the session.
4. It’s RBA day: The Reserve Bank will makes its monthly interest rate announcement at 2:30pm AEST. As usual, rates are almost certain to stay on hold at 1.5%, markets will be watching for any changes to the bank’s accompanying statement. David Scutt’s 10-second guide has everything you need to know.
5. Mexico elected Andres Manuel Lopez Obrador as its next president in a landslide victory. Lopez Obrador taking office will shift the Mexican government away from establishment politics and to the left for the first time in decades. The peso slid following the election.
6. Gold continued its recent decline, but bitcoin is making a comeback as prices climbed to a 10-day high overnight after slumping to 2018 lows over the weekend.
BONUS ITEM: An extra topic of discussion this morning will most likely be the insane all-in brawl at a FIBA basketball game between Australia and the Phillipines. Get the rundown here.