To the scoreboard:
Dow: 24,329.16 +117.68 (+0.49%)
S&P 500: 2,651.50 +14.52 (+0.55%)
AUD/USD: 0.7509 -0.0001 (-0.01%)
ASX200 SPI futures (December contracts): 6,024 (+23)
1. ASX200 poised to open higher: The local index looks set to extend its recent gains, following a strong lead from global markets on Friday night. The S&P500 climbed to a new record high in the wake of US employment data which continued the recent pattern seen in developed markets, as job gains beat expectations but wage growth remains low.
2. Bitcoin futures set to launch: After another typically wild weekend of price action, Bitcoin futures trading on the Cboe exchange is set to kickoff at 10:00am AEDT this morning. Here’s how it could affect prices. Bitcoin briefly reached a high above $US17,000 on the Bitfinex exchange on Friday, then dipped to below $US13,000 on the weekend before rallying overnight.
3. The week ahead: Global central bank policy will be in focus this week with the US Fed, ECB and Bank of England all set to make announcements on interest rates. Domestically, key data will be led by Thursday’s employment report with the economy expected to add more jobs for the 14th straight month. This week’s full calendar is here.
4. US dollar edges higher: But gains in the greenback were relatively muted following Friday’s strong jobs report. The pound was the worst performer among major currencies on Friday as markets assessed the latest agreement reached in Brexit negotiations. And the Aussie dollar is under pressure and holding just above US75 cents following data misses in GDP and trade last week.
5. Iron ore still volatile: Spot prices for benchmark 62% fines reversed course on the back of Friday’s strong trade data out of China, rocketing higher after an equally sharp fall the previous day. China’s trade data also showed a rise in oil imports, which helped boost benchmark crude by 1.9% to end the week.
6. Wage growth is coming, just be patient: That’s the view of Macquarie chief economist Ric Deverell, who said recent data actually suggests wage growth in the US is trending higher. Deverell told the AFR that Australian wage growth has lagged since the slowdown from the end of the mining boom, but conditions are still conducive to a pickup over the next 12 months.
Have a great day, I’m on Twitter @Mr_SamJacobs.