6 things Australian traders will be talking about this morning

(Ali Atmaca / Anadolu Agency / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 26,180.30 +545.29 (+2.13%)
  • S&P 500: 2,813.58 +58.13 (+2.11%)
  • AUD/USD: 0.7277 +0.0032 (+0.44%)
  • ASX200 SPI futures (December contracts): 5,897 (+34)

1. US stocks rallied and the greenback lost ground in the wake of the mid-term elections overnight. Gains on the S&P500 were led by tech companies, as Wall Street assessed the resulting political gridlock will make it more difficult to enact new restrictions on the sector.

2. ASX futures are pointing higher after the buoyant session on Wall Street. Here’s a summary of how analysts think the result will affect the outlook for US infrastructure, trade, financial regulation and the US budget deficit.

3. New Zealand’s central bank kept rates on hold at 1.75% this morning, as expected. The RBNZ said it still expects to keep rates on hold until 2020, despite strong recent data prints for inflation and employment. After strong gains yesterday, the Kiwi dollar was little-changed following the announcement.

4. Bond yields initially edged lower following the US mid-terms, but benchmark US 10-year bond yields are back above 3.2% this morning. A round of weakness in the USD saw the Aussie dollar continue its recent rally, as it broke above its 100-day moving average overnight.

5. Oil had a choppy session, as prices for brent crude rallied before falling back to around $US72 a barrel, after reports showed US oil output rose to a record high and inventories climbed more than expected.

6. And Goldman Sachs has added 69 new partners to its ranks, with a record 26% women. 28 new partners were added from the sales & trading division, with 21 from investment banking. Here’s the full list.

The main events on today’s economic calendar:

  • BHP annual general meeting.
  • Japan balance of payments data.
  • Chinese trade data.
  • US Federal Reserve policy meeting (rates expected to stay on hold).

Have a great day.