6 things Australian traders will be talking about this morning

Photo by Scott Barbour/Getty Images

Good morning.

To the scoreboard:

Dow: 24,139.60 -41.04 (-0.17%)
S&P 500: 2,629.72 +0.15 (+0.01%)
AUD/USD: 0.7563 -0.0045 (-0.59%)
ASX200 SPI futures (December contracts): 5,969 (+18)

1. The AUD is still under pressure following yesterday’s disappointing GDP report, while the CAD got sold off after a dovish interest rate announcement by the Bank of Canada. Other major currencies were mixed as the US dollar index edged back to a two-week high.

2. Global stocks steady: Stocks in the US and Europe traded flat in the wake of yesterday’s sharp selloff in Asian markets. And with further clarity around tax cuts and companies holding high levels of cash, Wall Street analysts are predicting 2018 could be a big year on the deal-making front.

3. Bitcoin still going bananas: Prices climbed above $US13,000 overnight — a daily gain of around $US1,000. But the CME Group, which is expected to launch Bitcoin futures trading this month, has warned the increasingly high costs of Bitcoin transactions raises the risk of a price correction.

4. Commodities sold off again: ASX200 futures traders are betting on the local market to rebound from yesterday’s losses, despite another fall in commodities. Iron ore got hammered overnight while benchmark crude oil fell to its lowest level since November 20. In base metals, copper steadied from its recent falls and gold remains at the low end of its recent trading range.

5. Safe-haven demand: In line with a slightly more risk-off tone overnight stemming from the jitters on Asian markets, government bonds caught a bid, with the yield on benchmark US 10-year treasuries down 3 basis points to 2.32%.

6. Global economy is on track: In an interview with the AFR, Dr Ken Rogoff — former chief economist for the IMF — said the global economy is growing in line with the usual 8-10 year time frame it takes to recover from major economic shocks, and expects inflation in the US will start to rise.

Have a great day.

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