6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard.

  • Dow: 24,739.53 +196.99 (+0.80%)
  • S&P 500: 2,723.07 +25.28 (+0.94%)
  • AUD/USD: 0.7532 +0.0068 (+0.91%)
  • ASX200 SPI futures (June contracts): 6,110 (+13)

1. Stocks rose overnight, with all three major indices closing higher on lukewarm inflation data. The dollar fell for the second straight day and 10-year US bond yields dipped back below 3%.

2. US inflation rose less than economists expected with a monthly gain of 0.2% in April (0.3% forecast). That left annual core inflation at 2.1% — still tracking within the US Fed’s target range — but not indicative of any further increases to the Fed’s current rate-hiking cycle.

3. Oil prices hit a new three-and-a-half-year high on the back of Israeli airstrikes in Syria, and as markets continued to poise themselves for new US sanctions on Iran. Bank of America thinks oil could soar as high as $100 a barrel.

4. Weakness and the US dollar and higher oil prices gave a boost to the commodity bloc currencies, and the AUD is back above US75 cents this morning. The UK pound had a choppy session and finished lower after a dovish rate announcement from the Bank of England.

5. Apple is approaching a valuation of $US1 trillion. Shares of the company gained for the ninth straight day after the announcement of a joint credit card launch with Goldman Sachs.

6. There was strong demand for an auction of US 30-year bonds overnight. The Treasury department issued $17 billion of bonds at a yield of 3.13% — the highest yield for a 30-year bond auction since March 2017.

Have a great day and weekend.

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