6 things Australian traders will be talking about this morning

(Ross Land / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 25,798.42 +547.87 (+2.17%)
  • S&P500: 2,809.92 +59.13 (+2.15%)
  • AUD/USD: 0.7140 +0.0009 (+0.13)
  • ASX SPI futures (December contracts): 5,886 (+32)

1. US stocks notched their best day since March overnight, as strong earnings reports helped lift spirits on Wall Street following a sell-off that had shaved thousands of points from the major US indices last week.

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2. Boosted by investment-banking revenue, Morgan Stanley and Goldman Sachs easily topped analyst forecasts. Johnson & Johnson also beat, helped by a jump in prescription sales. And Netflix surged after the bell as Q3 earnings crushed expectations.

3. Stocks in Italy also rose by more than 2% after the Italian government submitted its draft budget on time. But its spending forecasts remain in excess of EU rules, and analysts warned that policy makers in Brussels could still reject the budget.

4. While global equity markets surged ahead, US bond yields consolidated in a higher trading range. Benchmark US 10-year yields held steady at around 3.16%. There was more strong US data as job openings rose to a new record high and residential construction sentiment edged higher.

5. In currencies, the UK pound pushed higher as wage growth reached its highest level since the financial crisis, although Brexit concerns still linger. The AUD briefly hit a two-week high of 0.7150 US cents as higher stock prices helped boost risk-on sentiment.

6. Oil prices edged higher, with some analysts warning that US sanctions against Saudi Arabia in response to the disappearance of Jamal Khashoggi could see prices rise back above $US100 a barrel. Gold was little-changed while Bitcoin is hold steady at just under $US6,600.

Here’s a look at today’s economic calendar:

  • RBA’s Guy Debelle gives a speech called “The State of the Labour Market”.
  • UK inflation data.
  • US Federal Reserve minutes from the September meeting.

Have a great day.

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