6 things Australian traders will be talking about this morning

Good morning.

To the scoreboard.

  • Dow: 24,252.80 -328.09 (-1.33%)
  • S&P500: 2,717.07 -37.81 (-1.37%)
  • AUD/USD: 0.7413 -0.0001 (-0.01%)
  • ASX SPI futures (September contracts): 6,099 (-56)

1. US stocks slumped as markets weighed the fallout from reports that the US is planning to block Chinese investment in American technology firms. Efforts by Trump administration officials to try and ease the market’s concerns helped pare losses late in the session, but there were still widespread losses led by the tech-focused NASDAQ, which dropped more than 2%.

2. The New-York listed Chinese tech giant Alibaba fell by more than 5%, after the Shanghai Composite index fell sharply in late trade yesterday to close 1.83% lower. Stocks in the UK and Europe also fell and futures markets are pointing to a rough start for the ASX, before all eyes turn to Chinese markets when they open at 11:30am AEST.

3. In currencies, the US dollar came under mild selling pressure, initially falling against the safe-haven yen before recouping some of its losses. Given the sharp move towards risk-off sentiment and a fall in copper prices, the Aussie dollar held its ground relatively well and remains above US74 cents this morning.

4. Bond markets had little reaction to the latest trade news, as benchmark US 10-year treasury yields dipped slightly to 2.88%.

5. Energy stocks may also come under pressure today, after oil prices fell as markets digested Friday’s OPEC meeting which resulted in a tentative consensus to boost supply by anywhere from 600,000 to 1 million barrels per day. Brent crude dipped by 0.88% to $US74.66 a barrel.

6. And amid a round of turmoil on global stock markets, bitcoin held steady after finding support over the weekend when prices briefly dipped below the key $US6,000 level. It’s holding at around $US6,260 this morning, ahead of a speech by the RBA’s head of payments today (1pm AEST) at an event on cryptocurrencies.

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