To the scoreboard:
- Dow: 25,635.01 +173.31 (+0.68%)
- S&P 500: 2,754.42 +16.11 (+0.59%)
- AUD/USD: 0.7221 +0.0009 (+0.12%)
- ASX200 SPI futures (December contracts): 5,861 (+11)
1. The ASX200 looks set for a cautious open this morning, as Asian markets await key developments from the US mid-term elections. Early results are expected to start coming in at around 11am AEDT. Follow all the live action here.
2. US stocks strengthened into the close on predictably light volumes as voters head to the polls. The consensus forecast is for the Democrats to retake control of the lower house, while the Republicans are expected to maintain their majority in the Senate.
3. Analysts from Deutsche Bank said a Democrat-controlled House “holds the potential to reduce downside risks from trade policy friction”. And it could also provide a boost to European automakers and mining companies, two victims of Trump’s China trade policies.
4. Concerns around Italy’s economy still linger, as the government continues its standoff with the EU over the draft budget. Italy’s composite PMI data also fell into contractionary territory, as new orders declined and jobs growth fell to a 14-month low.
5. There were no big moves in currency markets, although the UK pound climbed to a two-week high against the greenback. And with US 10-year bond yields holding above 3.2%, a $US27 billion auction of 10-year treasuries saw strong demand as investors shrugged off political uncertainty ahead of the mid-terms.
6. Oil prices fell by another 1.5% to around $US72 a barrel, and are now at their lowest price since mid-August. Gold and Bitcoin were little-changed, while iron ore futures fell sharply after spot prices surged to start the week after a BHP train derailed in WA.
Here are the main events on today’s data calendar:
- New Zealand employment data (with u/e rate and average earnings).
- Australian construction PMIs for October.
Have a great day.