6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

Dow: 24,173.62 -116.43 (-0.48%)
S&P 500: 2,628.48 -10.96 (-0.42%)
AUD/USD: 0.7611 +0.0013 (+0.24%)
ASX200 SPI futures (December contracts): 5,954 (-26)

1. It’s GDP day: The report card on Australia’s economic growth in the September quarter will be released at 11:30am AEDT. The median forecast is for Q3 growth of 0.7%, and annual growth may rise by as much as 3% — albeit coming off a low base after last September’s shock contraction. David Scutt’s 10-second guide has everything you need to know.

2. USD on the move: The US dollar index climbed for the second straight day as markets continue to react to the potential for tax-cuts to boost growth and inflation in the near term. Strength in the greenback saw the Aussie decline from a high above 0.7650 US cents after it found momentum in the wake of yesterday’s solid retail data print.

3. Yield curve flattens: The fallout from the tax-cut legislation extended to the bond market, with the yield on shorter-term US 2-year bonds up to 1.83% — a 20-basis point rise over the past month — while benchmark 10-year yields dipped slightly, keeping the US 2-10 yield curve at the lowest level in a decade.

4. Base metals crash: It was a sea of red in base metals over night, led by falls in copper prices which slumped by more than 4% to a two-month low. Strength in the US dollar continues to weigh on gold, and the metals selloff extended to other commodities, with iron ore lower while oil prices dipped in a choppy session.

5. Global markets lose momentum: US stocks were again sold off into the close as the S&P500 drifted lower from its recent record highs. Combined with the fall in commodities, that means the ASX200 looks set to open lower this morning ahead of a big day of data. And while the market for various assets weighs on the impact of US tax reform, Goldman Sachs doesn’t think the proposed cuts will boost the economic growth in the medium-term.

6. Crypto demand remains steady: Bitcoin briefly hit a new record high overnight of $US11,829 before a small decline. Ahead of the first market for Bitcoin futures which is set to open on Monday, analysts from JP Morgan — the same company who’s CEO, Jamie Dimon, called Bitcoin a fraud — said the introduction of futures trading had “the potential to elevate cryptocurrencies to an emerging asset class.”

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