6 things Australian traders will be talking about this morning

UK Prime Minister Theresa May is under pressure. (Matt Dunham / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 25,289.27 +208.77 (+0.83%)
  • S&P 500: 2,730.58 +29.00 (+1.07%)
  • AUD/USD: 0.7280 +0.0047 (+0.65%)
  • ASX200 SPI futures (December contracts): 5,757 (+10)

1. Brexit chaos was the main event on overnight markets. A swathe of UK government ministers resigned in protest against Theresa May’s draft deal with the EU, including Brexit secretay Dominic Raab. Here’s what leading London business figures think will happen next.

2. UK bank stocks tanked, as risks of a no-deal Brexit rise while May could now face a possible leadership challenge. The pound had its biggest daily fall in around two years:


3. Across the pond, it was more positive as US stocks snapped a five-day losing streak, led by strong gains in the tech sector. There were also reports that chief US trade representative Robert Lighthizer told senior officials the next round of US tariffs against China are on hold, but Lighthizer’s office denied he said that.

4. The positive trade news helped provide support for the Aussie dollar, which whipped around in early overnight trade but then consolidated towards US73 cents. It followed a strong gain for the Aussie yesterday after another strong jobs report.

5. Oil edged higher for the second straight session after Wednesday’s heavy falls, while iron ore fell but futures markets are pointing to a strong session to end the week. After slumping yesterday, Bitcoin is still under pressure with prices down another 4% overnight.


6. And evidence has emerged that Trump’s trade war is beginning to have an effect on Chinese exporters. Car maker Geely had posted almost four years of consistent growth, but its record 46-month winning streak has come to an end.

BONUS ITEM: This week’s BI podcast is out with CBA agri commodities strategist Tobin Gorey, who has plenty of insights on the US-China trade war and Australia’s agricultulral indusry. You can find the link here.

There are no big market movers on the economic calendar to end the week. Here are the main events:

  • Malaysia Q3 GDP.
  • US industrial production and capacity utilisation.

Have a great weekend.