Good morning and happy Friday.
To the scoreboard:
- Dow: 26,661.72 +255.96 (+0.97%)
- S&P 500: 2,932.58 +24.63 (+0.85%)
- AUD/USD: 0.7291 +0.0027 (+0.37%)
- ASX200 SPI futures (December contracts): 6,188 (+22)
1. US stocks rose strongly to new record highs overnight, as markets continue to shake off escalating trade tensions around the globe. The Dow Jones hit a fresh peak for the first time since January, and ASX futures are pointing higher.
2. Data overnight showed US household wealth also rose to a new record high in the June quarter, while the latest OECD forecasts predict the US economy is set to expand by 2.9% this year, which would be the fastest rate of growth since 2005.
3. But despite a booming economy, currency markets hammered the greenback again as the USD index fell to a 10-week low. Both the euro and pound posted 1% gains, EM currencies were higher and the Kiwi dollar was the star performer in the commodity bloc after yesterday’s strong GDP print.
4. Benchmark US 10-year bond yields remain elevated above 3%. But although US 10-years are up 20 basis points in September, the MOVE index for treasury volaility remains low — as opposed to February this year when a jump in yields sparked a round of panic in share markets.
5. In commodities, iron ore prices fell amid reports Chinese steel demand may have peaked, while oil declined from its weekly highs near $US80 a barrel but still held above key resistance levels. Gold was up on a weaker US dollar and copper is around 5% higher for the week.
6. And hackers have stolen $US60 million worth of crypto from a Japanese exchange in the second biggest heist of the year, but Bitcoin prices were little-changed at around $US6,400 overnight.
Here are the key events on today’s economic calendar:
- Japanese inflation data and Japan PMIs in Asian trade.
- Flash PMIs for Europe, the US and the UK.
- Inflation data and retail sales numbers in Canada.
Have a great weekend.
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