To the scoreboard:
- Dow: 25,669.32 +110.59 (+0.43%)
- S&P 500: 2,850.13 +9.44 (+0.33%)
- AUD/USD: 0.7316 +0.0055 (+0.80%)
- ASX200 SPI futures (September contracts): 6,327 (+28)
1. US stocks climbed to end the week, amid reports reports the US and China may be working towards a trade deal in November. Trade talks offset lingering tension around Turkey and other emerging markets. The S&P500 closed just off record highs (although the NASDAQ was little-changed) and the ASX looks set for another positive start this morning.
2. Improving risk sentiment gave rise to strong gains in the AUD, which rose by 0.8% to climb back above US73 cents. The US dollar index continued to ease back from its recent highs. Here’s the move in the Aussie:
3. Emerging markets: Prior to reports of a November trade deal, Chinese stocks tanked to end the week while the Turkish lira also lost ground. And over the weekend, Venezuela devalued its currency by around 95% and hiked the minimum wage by 3,000% as part of efforts to stabilise its flailing economy.
4. The week ahead: It’s a quieter schedule on the economic calendar this week (full diary is here). Domestically, political developments may come into focus amid reports that Prime Minister Malcolm Turnbull’s leadership of the Liberal Party is now in crisis.
5. In commodities, declines in the US dollar helped give a small boost to gold while other base metals — copper, zinc and nickel — also climbed. Oil prices edged higher to end the week.
6. US bond yields were unchanged, with benchmark 10-years at 2.87% and the yield curve holding steady at 25 basis points. Bitcoin is holding steady at above $US6,500 after last week’s fall below $US6,000.
Today’s economic calendar:
- Woolworths and Fortescue report earnings.
- Speech from the Atlanta Fed’s Raphael Bostic on the US economic outlook.
Have a great week.
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