To the scoreboard:
- Dow: 26,486.78 +39.73 (+0.15%)
- S&P 500: 2,884.43 -1.14 (-0.04%)
- AUD/USD: 0.7077 +0.0022 (+0.31%)
- ASX200 SPI futures (December contracts): 6,070 (-7)
1. The S&P500 started lower but rallied into the close to finish flat, after UK and European markets both fell by more than 1% following the bloodbath on Chinese markets yesterday. ASX futures are pointing slightly lower, with the local market coming off its biggest fall in over six months.
2. Stocks in Italy fell by more than 2% and Italian 10-year bond yields rose to a new four-year high above 3.6% after the European Commission said Italy’s new fiscal budget will be in breach of Eurozone spending rules.
3. Concerns over Italy also weighed on the euro, which fell back below $US1.15. The Aussie dollar found support to climb off its Monday lows, but CBA’s Elias Haddad said there needs to be further evidence of Chinese stimulus measures and/or local for a more sustained AUD rally.
4. Some extra strength in the USD saw gold fall more than 1%, while oil prices continued to edge lower from last week’s four-year high. But iron ore futures jumped in China after trading reopened the one-week break. The major cryptocurrencies continued to find demand, with Bitcoin edging back towards $US6,700.
5. US tech stocks got hit for a third straight day, with heavier falls in Snap, Atlassian and Tesla. After falling by another 4.35%, Tesla is now trading at its lowest level in 18 months.
6. And Brazil’s currency, the real, rose strongly against the US dollar after the first round of Brazilian elections. Right-wing candidate Jair Bolsonaro — known as “Brazil’s Donald Trump” — will move through to the runoff later this month against Fernando Haddad.
Here’s a look at the key events on today’s data calendar:
- NAB Business Survey for September in Australia (11:30am AEST).
- Japan current account / trade balance.
- US small business optimism.
Have a great day.
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