To the scoreboard:
Dow: 24,360.21 +2.89 (+0.01%)
S&P 500: 2,671.92 -0.71 (-0.03%)
AUD/USD: 0.7452 -0.0003 (-0.04%)
ASX200 SPI futures (June contracts): 6,082 (+5)
1. Budget wrap: The central announcement last night was the federal government’s plan to phase in $140 billion worth of income tax cuts over the next seven years. Here’s Business Insider’s full round-up of last night’s action.
2. Oil was the big story overnight after President Donald Trump said the US will withdraw from the Iran nuclear deal. Oil prices initially fell by more than 4% but pared losses following the announcement, as benchmark crude climbed back above $US75 a barrel.
3. The Aussie dollar got sold off in Europe heading into last night’s budget and that continued overnight as the USD continues to strengthen. The euro is back under $US1.19 — a new 2018 low — while emerging market currencies in Argentina and Turkey both fell to new record lows against the greenback.
4. Iron ore prices fell, with the federal government maintaining its forward-looking price projection of $US55 a barrel in last night’s budget. As a measure of iron ore’s importance, a $10 move in prices alters the budget position by $3.6 billion.
5. US stocks fluctuated around Trump’s decision on Iran but ended up trading flat. Stocks in Italy slumped by 2.4% and Italian bond yields spiked as the continued political gridlock becomes a source of concern for markets.
6. In the wake of Trump’s Iran announcement, US bond yields are a little higher with US 10-year yields rising to 2.97%, while gold is largely unchanged. Today in Australia Westpac releases it’s monthly consumer confidence survey.
Have a great day.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.