To the scoreboard:
- Dow: 25,270.83 -109.91 (-0.43%)
- S&P 500: 2,723.06 -17.31 (-0.63%)
- AUD/USD: 0.7199 -0.0007 (-0.10%)
- ASX200 SPI futures (December contracts): 5,811 (-5)
1. US jobs data moved markets on Friday night, with a bumper report which showed the economy added 250,000 jobs in October (189,000 forecast) while wage growth rose at the fastest pace since 2009.
2. US bond yields spiked across the curve, as jobs data reinforced expectations the US Fed will follow through on its rake hiking path as the US economy strengthens. Benchmark 10-year yields settling just shy of their recent high at 3.22%.
3. The USD strengthened, and the AUD fell back from its weekly high after surging in Friday afternoon trade following reports of a possible breakthrough on US-China trade negotiations. In comments on Friday night, US chief economic adviser Larry Kudlow tempered expectations around a possible deal.
4. ASX futures closed five points lower ahead of this morning’s open, as US stocks didn’t take the lead from Asian markets which rocketed higher to end the week. Tech stocks dragged on the index as Apple fell by 6.63% following an underwhelming earnings report.
5. Prices for brent crude oil continued to edge lower on Friday night, capping a weekly fall of 6.1%. Elsewhere in commodities, gold was flat while iron ore continued to decline from its recent highs. Bitcoin is still trading in a tight range but edged back above $US6,400 over the weekend.
6. The week ahead: The RBA will be in focus this week, with two key announcements starting with Tuesday’s monthly policy meeting. The US politics are likely to be the main event abroad, as markets wait on the results of the mid-term elections. This week’s full calendar is here.
BONUS ITEM: Westpac reported full-year results this morning, with underlying cash earnings little-changed at $8.065 billion.
Have a great week.