To the scoreboard:
- Dow: 25,052.83 -545.91 (-2.13%)
- S&P500: 2,728.37 -57.31 (-2.06%)
- AUD/USD: 0.7121 +0.0058 (-0.82%)
- ASX SPI futures (December contracts): 5,778 (-47)
1. The ASX200 looks set for another sharp fall this morning, after US stocks lost a further 2% overnight. Falls were led by energy and financial stocks, with smaller declines in the big tech companies. The S&P500 has now fallen below its 200-day moving average.
2. All-important US inflation data missed expectations, with a gain of 0.1% in September (0.2% forecast). US 10-year bond yields continued to edge lower, a move which started yesterday when the plunge in US stocks prompted a shift into safe-haven assets.
3. Following a weaker inflation print, the US dollar drifted lower against all the major pairs and the AUD climb back above US71 cents this morning. The Turkish lira jumped more than 2%, after reports Washington and Ankara have reached an agreement that could lead to the release of a detained American pastor.
4. Oil prices fell sharply, and have now lost almost 5% for the week. OPEC said it boosted production in September, which eased supply concerns around the pending US sanctions against Iran. OPEC also reduced its global demand forecasts for the third straight month.
5. Despite a round of absolute carnage on Chinese markets yesterday, iron ore prices held their ground above $US70 a tonne. Gold rose by 2.5% amid the US dollar weakness, while Bitcoin remains under pressure at around $US6,250 after yesterday’s 5% fall.
6. And while President Trump says the US Fed has “gone crazy“, central bank policy may be just one of the factors contributing to increased levels of volatility. BI’s UK editor Jim Edwards has a summary of the major catalysts keeping markets on edge.
Here’s a look at the events on today’s economic calendar:
- Australia has August housing finance data from the ABS at 11:30am AEST.
- RBA financial stability review.
- Chinese trade data for September.
Have a great weekend.
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