To the scoreboard:
- Dow: 26,439.93 +54.65 (+0.21%)
- S&P 500: 2,914.00 +8.03 (+0.28%)
- AUD/USD: 0.7208 -0.0049 (-0.68%)
- ASX200 SPI futures (December contracts): 6,198 (+28)
1. US stocks snapped a four-day losing streak and the greenback rose strongly, as markets digested this week’s message from the US Fed that it will continue to raise rates in response to strength in the US economy, however it doesn’t expect a sharp increase in inflation.
2. The US dollar index rose by almost 1% and posted gains against all the major currencies. So the Aussie is back to around US72 cents this morning, after it briefly climbed above US73 cents following the Fed’s rates announcement yesterday.
3. ASX futures are pointing higher this morning following a stronger US lead. The Hayne Royal Commission report is expected to be submitted to parliament later today.
4. Italian bond yields fluctuated as markets remain on edge about delays to the new government’s proposed budget. Italy 10-year yields reached 2.99% before easing back, and an auction of Italian 5-year debt was oversubscribed. Benchmark US 10-years edged higher to 3.07% after a sharp fall yesterday.
5. Amid strength in the USD, gold fell by 1% overnight while other base metals — copper, zinc and nickel — also posted falls of 1-2%. In addition, steel and iron ore futures are getting hammered. Oil is trading flat this morning after reports Saudi Arabia will fill the short-term supply gap caused by the US sanctions against Iran.
Here’s a look at the main events today’s economic calendar:
- Hayne Financial Services Royal Commission interim report.
- Japanese industrial production, unemployment and retail trade.
- Monthly private sector credit data from the RBA in Australia.
- Eurozone inflation.
- PCE inflation data for August in the US (the Fed’s preferred measure of inflation.
Have a great weekend.
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