To the scoreboard:
- Dow: 24,216.05 +98.46 (+0.41%)
- S&P500: 2,716.31 +16.68 (+0.62%)
- AUD/USD: 0.7351 -0.0001 (-0.01%)
- ASX SPI futures (September contracts): 6,185 (+13)
1. US markets were relatively benign overnight following another sharp fall in Chinese stocks yesterday. In the absence of further news on trade wars, the S&P500 erased early losses as the tech sector rebounded while financial stocks rose for the first time in 13 days.
2. The US dollar started the session sharply higher, but gave back most of those gains to finish flat after the second reading of Q1 GDP showed the US economy grew at a slower pace than previously expected. The AUD rose slightly against the greenback but remains at the lower end of its recent trading range.
3. In a letter to the financial services industry, Bank of England Deputy Governor Sam Woods said cryptographic technologies could benefit the financial system over time. Meanwhile, bitcoin is under pressure this morning — it fell by around 2% overnight to slip below the key $US6,000 level.
4 In its latest healthcare venture, Amazon announced a deal to buy an online pharmacy. The e-commerce giant’s acquisition of PillPack, a Boston company that focuses on customers who take multiple daily prescriptions, rattled other pharma companies.
5. The rally in US stocks came after European markets had closed, which meant the STOXX600 posted a 0.82% fall. Eurozone economic sentiment fell to a 10-month low in May, but business confidence remained steady. Economists have warned the ongoing trade fight between the EU and the US will weigh on growth.
6. Gold continued its steady grind lower, falling beneath $US1,250 an ounce for the first time in six month. Oil prices were choppy while it was a quiet session in bond markets, as benchmark US 10-year bond yields edged slightly higher to 2.84%.
A look at today’s economic calendar:
- Private sector credit figures from the RBA.
- Current account, GDP, and net lending numbers are out in the UK.
- Consumer spending data in the US, including the PCE inflation measure.
- Eurozone inflation and the EU continues its economic summit in Brussels.
Have a great weekend.