To the scoreboard:
Dow: 24,893.42 -19.35 (-0.08%)
S&P 500: 2,681.62 -13.52 (-0.50%)
AUD/USD: 0.7822 -0.0083 (-1.05%)
ASX200 SPI futures (March contracts): 5,830 (+40)
1. US bond yields are back on the rise after Monday night’s flight to safety. Benchmark US 10-year bond yields rose by around 8 basis points to 2.84%, as an auction of US 10-year debt saw weak demand. The rise saw US 10-years briefly hit parity with their Aussie counterparts, until Australian bond yields also climbed at the commencement of trade this morning. Here’s the move in US 10’s:
2. Greenback finds buyers: The US dollar index rose back over 90 for the first time since January 24 and the Aussie dollar has lost another 1% against the USD, while the Kiwi dollar fell across the board after the New Zealand central bank lowered its inflation outlook at this morning’s interest rate announcement.
3. US stocks slumped into the close after a choppy session of trade, amid lingering concerns about another bond selloff. Trump said the market made a “big mistake” in Monday night’s selloff — but if more volatility is on way, this $US1.6 trillion asset manager explained to Business Insider how he deals with erratic markets.
4. Monday’s stock rout was triggered in part by the prospect of higher inflation — and higher interest rates — stemming from a rise wage growth in Friday night’s US employment data. And miner Rio Tinto thinks higher wages are on the way in Australia too after reporting a 69% surge in profits last night and paying out record dividends.
5. Iron ore continued its winning streak and has now posted a 6% gain over the last four sessions, as Chinese steel mills restock ahead of the Lunar New Year holiday. Oil prices slumped by more than 2% to around $US65 a barrel while gold hit a two-week low amid the increasing strength in the US dollar.
6. Cryptocurrencies proved resilient overnight, as Bitcoin pushed back above $US8,000 in the wake of a Congressional hearing for US market regulators on Wednesday. Both the CFTC and SEC said they were supportive of mainstream cryptocurrencies and blockchain technology, while their main concerns was the proliferation of scam initial coin offerings (ICOs).
Have a great day.