To the scoreboard:
Dow: 22,661.64 +19.97 (+0.09%)
S&P 500: 2,537.74 +3.16 (+0.12%)
AUD/USD: 0.7861 0.0027 +0.34%
ASX200 SPI futures (December contracts): 5,647 (+19)
1. Global economy on track: The US dollar dipped slightly overnight, even though ISM non-manufacturing data PMIs easily beat expectations. That may be explained in part by strength in PMI data across other major markets to start the month. The positive global growth backdrop also helped to provide support for the Aussie dollar overnight. This chart from JP Morgan shows the positive trend in global PMIs (thanks to Greg McKenna at AxiTrader):
2. US stocks strong again: The S&P500 continues to edge up to new record highs, while across the pond Spanish stocks slumped by 2.9% as Catalonian leaders said they plan to declare independence within days. ASX futures traders appear to be a study in eternal optimism, having marked the local index up again today despite a poor run in recent weeks which has left the local index at its lowest level since February.
3. The Great Liquidity Crisis: It might not be the GFC (global financial crisis), but JP Morgan has already coined a term for a potential GLC, as the solid global growth outlook provides a platform for global central banks to continue withdrawing monetary stimulus. A neat summary of the potential impact is here.
4. RBA chart pack: Yesterday’s chart on Australia’s household debt to disposable income got plenty of attention (and with good reason — it’s approaching 200%). But the chart below also caught our eye — it shows that Australian businesses have had good investment conditions in a low-interest rate environment, but business credit has remained stagnant:
5. Data today: At 11:30am AEST the ABS will release August data for retail sales and international trade. Retail sales are forecast to climb by 0.3% after falling flat in July, while the trade surplus is expected to rise to $870 million from $460 million.
6. Oil reverses last week’s rally: Prices for both benchmark crude and WTI dipped overnight, despite a much bigger than expected reduction in US oil inventory (six million against 500,000 forecast). Gold edged higher on a weaker US dollar and it was another good night for base metals, with zinc hitting a new 10-year high.
BONUS ITEM: Diet of champions? Business Insider’s Bob Bryan ate like Warren Buffett for a week — and it didn’t go well.
Enjoy your day, I’m on Twitter @Mr_SamJacobs.