To the scoreboard:
Dow: 25,792.86 -10.33 (-0.04%)
S&P 500: 2,777.58 -8.66 (-0.31%)
AUD/USD: 0.7961 -0.0005 (-0.06%)
ASX200 SPI futures (March 2018 contracts): 5,963 (-29)
1. Commodities under pressure: Oil is down more than 1% from its three-year high, with talk of increased US production and technical resistance appearing to be the main drivers. Base metals were off, with copper down 0.5% while iron ore fell heavily again.
2. Amid a softer commodities backdrop, the AUD fell as low as 0.7938 US cents but battled back to finish around flat for the session. The euro also started lower amid more political uncertainty in Germany, but it too recouped its initial losses as the USD remains stuck in the doldrums.
3. It was an interesting session for US stocks, as the Dow briefly eclipsed 26,000 for the first time before bullish momentum waned. With a weak US lead and softer commodity prices, ASX200 futures traders are betting on further falls for the local index today.
4. Crypto-calypse Now: It was a sea of red in crypto markets, as the selloff which began yesterday in Asian trade extended into overnight markets. Bitcoin has collapsed below $US11,000 and all the majors are under pressure this morning. An apt one-word description of this table from Investing.com would be “bloodbath”:
5. On the domestic data front today the ABS has November housing finance figures, with analysts focused on any further falls in investor lending. Among key data points globally, Europe will release inflation data with annual core inflation forecast to rise by 0.9%. And the Bank of Canada will make its interest rate announcement later tonight.
6. And lastly, Deutsche Bank analyst Torsten Slok is concerned that the US Treasury is about to ramp up bond issuance to meet the funding needs of the US government, just as global central banks are beginning to scale back asset purchases. He said it poses a “significant risk” to markets, which could lead to higher bond yields and falling stock prices even if US economic fundamentals remain sound.