To the scoreboard:
- Dow: 25,017.44 -395.78 (-1.56%)
- S&P 500: 2,690.48 -45.79 (-1.67%)
- AUD/USD: 0.7292 -0.0026 (-0.36%)
- ASX200 SPI futures (December contracts): 5,673 (-18)
1. The recent tech-led selloff in US stocks continued overnight, as the NASDAQ fell to a six-month low. Apple shares fell further below $US200 and Atlassian lost almost 8%, while shares in major semiconductor manufacturers such as Nvidia extended their heavy falls from last week.
2. Risk-off sentiment weighed on the Aussie dollar, which was the weakest performer among major currencies. The euro and pound both edged higher against the US dollar, after the US NAHB home-builder survey showed confidence fell to a two-year low.
3. It was a bloodbath on crypto markets, as Bitcoin slumped below $US5,000 for the first time since October 2017. Falls extended into the broader market with all the major alt-coins down heavily.
4. US-China trade tensions also weighed on stocks after the acrimonious APAC summit on the weekend. China’s former chief trade negotiator Long Yongtu was critical of Beijing’s tactics in the trade war. Chinese internet giant JD.Com slumped in US trade, after quarterly revenue growth missed estimates amid evidence of a slowdown in China’s economy.
5. Brent crude oil eased back after three sessions of modest gains. Prices remain about 25% below the four-year high reached in October, not that Aussie motorists are seeing the benefits yet. In iron ore, a switch is underway in the prices action between high-grade and low-grade ores.
6. And in trading news, London-based hedge fund Merian Investors placed a $US113 million short bet and European carmaker Renault at the end of October. Shares in Renault subsequently tanked following news its chairman and CEO had been arrested.
Today’s economic calendar:
- RBA board minutes from the November meeting (11:30am AEDT).
- RBA Governor Lowe speech called “Trust and Prosperity” (7:20pm AEDT).
- Bank of England governor testifies to a parliamentary committee on inflation.
- US housing starts / building permits for October.