To the scoreboard:
- Dow: 25,339.99 +287.16 (+1.15%)
- S&P500: 2,767.13 +38.76 (+1.42%)
- AUD/USD: 0.7112 -0.0007 (-0.10%)
- ASX SPI futures (December contracts): 5,803 (-51)
1. US stocks had a tech-led rally on Friday night, after Asian markets steadied to end the week. The S&P500 snapped a six-day losing streak where it lost 6.7%, but ASX futures closed sharply lower as market remain on edge.
2. US 10-year bond yields crept higher to close at 3.167%. That’s still below the seven-year high of 3.26% they reached just before stocks crashed on Wednesday night, but higher bond yields remain one of the many factors causing tension on markets to start the week.
3. The euro and pound both start the week lower amid political concerns. Exit polls showed Angela Merkel’s ruling coalition in Germany could be on shaky ground, while UK Prime Minister Theresa May said the current Brexit deal is a “non-starter” after tense negotiations in Brussels overnight.
4. Oil prices continued their reversal, as brent crude briefly fell back below $US80 a barrel. Gold was steady after posting its largest gain since Brexit on Thursday night, while iron ore continues to climb. Bitcoin was little-changed at around $US6,300 over the weekend.
5. And shares in Saudi Arabia crashed by 7% in Sunday trade, after US President Trump threatened “severe punishment” if the kingdom is found to be responsible for the murder of journalist Jamal Khashoggi.
6. The week ahead: It’s a relatively quiet schedule in Asia to start the week, before September retail sales data in the US tonight. Key data domestically will be led by employment figures on Thursday. This week’s full calendar is here.
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