To the scoreboard:
- Dow: 25,058.12 -6.38 (-0.03%)
- S&P500: 2,801.83 -2.66 (-0.09%)
- AUD/USD: 0.7423 +0.0064 (+0.87%)
- ASX SPI futures (September contracts): 6,207 (-18)
1. Global markets adopted a cautious tone to end the week, as US President Trump continue to inflame trade tensions by threatening tariffs on all $US500 billion worth of China’s exports. The ASX looks set to open lower, with all eyes again on China’s market open (11:30am AEST) after stocks in Shanghai rallied on Friday.
2. The US dollar fell for a second straight day in the wake of comments by President Trump that he was concerned about the Fed hiking rates. Axitrader’s Greg Mckenna said this morning that given trader positioning and recent data, the USD remains vulnerable if Trump continues to weigh on currency and rates markets.
3. Benchmark US 10-year bond yields rose to end the week, closing at 2.895%. US 2-years held steady which pushed the 2-10 yield curve slightly higher, although it remains just off decade-lows.
4. Gold and copper have both been under downside pressure in recent weeks, but both found support on Friday night amid weakness in the US dollar. Oil also edged higher while prices for iron ore were steady to end the week.
5. Bitcoin held steady over the weekend at around $US7,400. In what may be a sign of rising institutional interest in the space, BI’s Frank Chaparro reported over the weekend that Coinbase — the largest US exchange — is working with a $US20 billion hedge fund as it builds out a prime brokerage platform.
6. The week ahead: Key data in Australia this week will be led by all-important inflation figures on Wednesday morning. Internationally, it’s a pretty quiet schedule. The full calendar is here.
Have a great week.
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