6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 25,081.31 -205.18 (-0.81%)
  • S&P 500: 2,702.28 -19.90 (-0.73%)
  • AUD/USD: 0.7239 +0.0008 (+0.11%)
  • ASX200 SPI futures (December contracts): 5,745 (+5)

1. It’s jobs day: Continued strength in the labour market is of critical importance if Australia is to maintain economic growth above 3%. Employment data (11:30am AEDT) is expected to show the economy added 20,000 jobs in October. Here’s Business Insider’s full guide ahead of today’s release.

2. US stocks closed lower for the fifth straight session overnight, with shares in Apple now down more than 10% since last week’s earnings report. ASX futures are slightly higher but it follows two days of heavy falls, including a sharp selloff yesterday where “nothing made sense“.

3. In commodiites, brent crude is around 1% higher following yesterday’s collapse. And after trading in a narrow range for months, Bitcoin slumped by more than 10% overnight to fall to its lowest level since October 2017.

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4. The UK pound fluctuated around the $US1.30 mark as Theresa May secured support from her cabinet on a Brexit deal. The draft deal must now be approved by the EU’s 27 member states and then by the UK parliament, which is shaping up as a tougher battle. There’s also talk of an imminent challenge against May’s leadership.

5. With more of a risk-off tone in global markets, benchmark US 10-year bond yields edged lower to 3.12%. The Australian dollar “held up well in this environment”, Westpac’s Sean Callow said. A short time ago, the Aussie was pushing further above US72 cents in morning trade.

6. Key US inflation data for October was in line with expectations, with core inflation rising by 0.2% for the month for an annual lift of 2.1%. CME’s Fedwatch tool currently asigns a 72.3% probability of another rate hike by the US Fed in December.

The key events on today’s economic calendar:

  • Australian employment data (11:30am AEDT).
  • US Fed chair Jerome Powell will discuss the US economy in Dallas (from 10am AEDT).
  • RBA’s Guy Debelle appears on panel “Assessing the effects of housing lending policy measures” (1:00pm AEDT).
  • US and UK retail sales.
  • Philadelphia Fed manufacturing survey.

Have a great day.

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