6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

Dow: 23,940.68 +103.97 (+0.44%)
S&P 500: 2,626.08 -0.96 (-0.04%)
AUD/USD: 0.7574 -0.0021 (-0.28%)
ASX200 SPI futures (December contracts): 6,005 (-14)

1. Bitcoin madness: Prices have slumped back well below $US10,000 this morning after clearing $US11,000 overnight. And as Bitcoin’s value fluctuates, here’s how closely Bitcoin’s price and Google searches for “Bitcoin Bubble” correlate. The overnight moves were part of a broader selloff across the major cryptocurrencies:

Source: Investing.com

2. The day ahead: Domestically, there’s Q3 capital expenditure figures at 11:30am AEST. David Scutt’s 10-second guide is here. There’s also monthly data for building approvals and private sector credit, and China has manufacturing PMIs. Looking abroad, PCE inflation figures in the US will get plenty of attention, the Eurozone has unemployment and inflation data and OPEC meets in Vienna tonight to discuss supply-cut extensions.

3. US economy beats expectations: Q3 GDP growth came in at 3.3%, above forecasts of 3.2%, and it’s the best reading in three years. That helped to support a rise in US bond yields across the curve, with benchmark US 10-year yields around 4 basis points higher this morning at 2.37%.

4. NASDAQ falls: The tech-focused stock index had its biggest one-day selloff in three months, as money rotated into other sectors with the S&P financials index gaining by 1.4%. While we’re on NASDAQ, the exchange has announced plans to launch Bitcoin futures from the middle of next year.

5. Pound climbs again: The UK pound rose strongly for the second day following the breakthrough in Brexit negotiations, as the yield on UK 2-year government bonds hit an 18-month high. The AUD is lower against the USD, pound and euro ahead of a wave of data releases scheduled this morning.

6. More calls for rate rises: Former RBA board member Warwick McKibbin says Australia’s central bank should proceed with interest rate rises before housing stability risks become worse, the AFR reports. McKibbin’s comments follow similar sentiments yesterday from the Organisation for Economic Co-operation and Development.

Have a great day.