To the scoreboard:
- Dow: 24,462.94 -201.95 (-0.82%)
- S&P 500: 2,670.14 -22.99 (-0.85%)
- AUD/USD: 0.7673 +0.0001 (+0.01%)
- ASX200 SPI futures (March contracts): 5,833 (-15)
1. The ASX200 is poised to open the week lower after US stocks dipped for the second straight session on Friday night, with heavier falls in tech stocks as Apple fell by 4.1%.
2. The pressure on stocks wasn’t surprising given another sharp move in the bond market. US 10-year bond yields jumped again, capping a weekly gain of 13 basis points to close at 2.96% — the highest level since January 2014.
3. And it was a strong session for the greenback, as the US dollar index rose back above 90 for the first time in two weeks. Broader US dollar strength along with risk-off sentiment weighed on the Aussie which fell back below US77 cents.
4. So markets are delicately poised to start the week, with stocks under pressure as bond yields climb and the USD gathering momentum. On the data front, it’s a quiet start internationally while in Australia, all the focus will be on Tuesday’s inflation data (11:30am AEDT). The full calendar is here.
5. In commodities, oil rallied back on Friday night after President Trump took aim at OPEC on Twitter. Brent crude closed just off its recent high at $US74.06 a barrel. But the US dollar strength weighed on gold, and iron ore came under pressure amid a dip in steel prices.
6. Meanwhile, cryptos are rallying again with Bitcoin pushing back towards $US9,000 this morning. And the Reddit crypto community is fired up about a $US99 million Litecoin trade over the weekend. More on that here.
Have a great week.
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