6 things Australian traders will be talking about this morning

A worker at a US oilfield service company works on a pipe that will be used in the fracking industry. (Spencer Platt / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 25,583.75 -45.16 (-0.18%)
  • S&P500: 2,857.70 -0.75 (-0.03%)
  • AUD/USD: 0.7431 +0.0004 (+0.05%)
  • ASX SPI futures (September contracts): 6,206 (-1)

1. US stocks were mixed overnight, as a new round of tariffs between the US and China dragged energy companies lower. It followed a weak lead from Chinese markets which slumped into the close yesterday afternoon.

2. Oil prices fell by more than 3% after Beijing announced it would retaliate against the US with a 25% tariff on another $US16 billion worth of goods, including crude exports to China. Weekly US crude inventories declined by 1.4 million barrels, below forecasts of a 3.3 million barrel draw-down.

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3. The Reserve Bank of New Zealand kept official interest rates on hold at 1.75% this morning. The bank also suggested that rates may stay on hold for longer than previously forecast. A short time ago, the New Zealand dollar was down by around 0.4% against the USD in morning trade.

4. The UK pound remains under pressure amid Brexit fears, falling below $US1.29 overnight. And the Japanese yen gained more ground as traders continued to assess whether the Bank of Japan is edging towards scaling back its extreme monetary stimulus measures.

5. Bitcoin is lower again this morning after a sliding back towards $US6,000 overnight, following sharp declines yesterday in Asian trade.

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6. Shares in Tesla fell by 2.4% after yesterday’s 11% rise, amid reports US regulators are looking into whether Elon Musk’s claims about taking Tesla private are true. Other reports suggested Musk met with Japan’s Softbank last year to discuss a privatisation deal.

Have a great day.

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