To the scoreboard:
- Dow: 25,916.54 -79.33 (-0.31%)
- S&P500: 2,871.68 -6.37 (-0.22%)
- AUD/USD: 0.7105 -0.0097 (-1.35%)
- ASX SPI futures (September contracts): 6,108 (-23)
1. Key US jobs data beat forecasts on Friday night, but the focus was on wage growth which rose to 2.9% y/y — the fastest pace since June 2009. The US dollar rose along with US treasury yields.
2. Global trade fears are still very much on the radar, with markets preparing for the Trump administration to announce tariffs on another $US200 billion worth of Chinese goods. And Chinese trade data over the weekend showed China’s trade surplus with the US rose to a new record high in August.
3. The Australian dollar has been under pressure in recent weeks, and the combination of a stronger USD and ongoing trade fears provided no respite on Friday night. The Aussie got hammered across the board, and opens the week at around US71c — its lowest level since February 2016.
4. The ASX is on a seven-day losing streak, and futures traders have marked the local index down again this morning with the weak lead from global markets. Global commodities were little changed to end the week, while Bitcoin had a sharp fall over the weekend but is back to around $US6,400 this morning.
5. US stocks fell as bond yields climbed on Friday night, and with a September rate hike by the US Fed now all but priced in, the CME’s Fedwatch tool has increased the probability of a second rate hike in December to 75%.
6. The week ahead: The RBA’s Michele Bullock will give a speech on the housing market today, and key data will be led by Thursday’s jobs report for August. Globally, US inflation will be in focus on Thursday night. This week’s full calendar is here.
Have a great week.
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