To the scoreboard:
- Dow: 25,598.74 -831.83 (-3.15%)
- S&P500: 2,785.68 -94.66 (-3.29%)
- AUD/USD: 0.7065 -0.0038 (-0.53%)
- ASX SPI futures (September contracts): 5,914 (-109)
1. US stocks got hammered overnight as the major indexes fell by more than 3% in the biggest selloff since early February. It’s looking like a brutal session on the local market, with ASX futures down more than 100 points. Here’s the move in the S&P500:
2. There was no single catalyst for the fall, but higher bond yields, concerns about global growth and lingering trade tensions were all cited as factors. European and UK markets were down more than 1%. Falls in the US were led by tech stocks as the NASDAQ100 finished 4.44% lower:
3. Benchmark US 10-year bond yields initially edged higher above 3.2%, but found demand late in the session as the stock market selloff prompted a flight to safety. A short time ago they were trading at 3.176%. US wholesale (PPI) inflation rose in line with expectations for September.
4. Currency markets “behaved as expected”, Westpac said, as the safe-haven Japanese yen was the strongest performer. The US dollar dipped against the euro and pound while risk-off sentiment weighed on the Aussie, although the “AUD/USD’s decline was not dramatic”.
5. Despite the move into safe-havens, gold only just edged higher. Oil fell by more than 2%, reversing the previous day’s gains after Hurricane Michael forced oil producers in Florida to close. Copper also fell more than 2% while iron ore continued its recent rally.
6. And amid some wild volatility on global share markets, cryptocurrencies were little-changed as Bitcoin edged back below $US6,600 with similar falls in the other major alt-coins.
Here’s a look at today’s economic calendar:
- US CPI inflation data tonight will be the main focus. Core inflation is forecast to rise by 0.2% in September.
- The RBA’s Luci Ellis gives a speech at the Melbourne Institute 2018 Economic and Social Outlook Conference.
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