To the scoreboard:
Dow: 23,857.71 -344.89 (-1.43%)
S&P 500: 2,612.62 -45.93 (-1.73%)
AUD/USD: 0.7680 -0.0068 (-0.88%)
ASX200 SPI futures (June contracts): 5,758 (-60)
1. More US stock jitters: Negative sentiment towards the big tech companies — which have underpinned the rise of US stocks to new record highs — drove last night’s selloff. Concerns about a US crackdown on Chinese investment also compounded fears in afternoon trade. The NASDAQ index slumped almost 3%, with another round of selling in Facebook while Twitter crashed by more than 12%.
2. With volatility in stocks, markets are clearly on edge and that was reinforced by a notable move in bond yields overnight. The yield on benchmark US 10-years dropped by more than 6 basis points, to fall back below 2.8% for the first time since the stock market shakeup in early February.
3. And in another reversal of the trend across previous sessions, the US dollar found a bid. The greenback put in an extra strong showing against the AUD, which was the worst performer among major currencies. AxiTraders’s Greg McKenna said traders will be watching the 0.7670 US cents mark as a key line of support for the Aussie in today’s session.
4. Cryptos are still under pressure, with bitcoin stuck below $US8,000 while ethereum fell to its lowest price of the year overnight. And another central banker has weighed in, with Atlanta Fed president Raphael Bostic suggesting that if people have money they need, they shouldn’t invest it in cryptocurrency.
5. Iron ore prices halted their recent slide as fears of a trade war subsided somewhat, although futures markets are pointing lower this morning. And the stronger US dollar weighed on gold and also oil prices, as benchmark crude dipped back below $US70 a barrel.
6. Stock volatility is back, with Monday’s rally marking the third straight move of at least 2% in the S&P500. That hasn’t happened since the Chinese yuan-revaluation rattled markets in 2015, but JP Morgan recommends traders stay the course — the bank’s analysts predict markets will navigate the recent headwinds and remain bullish in the near-term.
Bonus item: Deutsche Bank COO Kim Hammonds has told a conference the bank is the “most dysfunctional” company she has ever worked for, amid rumours CEO John Cryan may be on the way out.
Have a great day.