To the scoreboard:
- Dow: 24,463.40 -554.04 (-2.21%)
- S&P 500: 2,642.44 -48.29 (-1.79%)
- AUD/USD: 0.7305 -0.0077 (-1.06%)
- ASX200 SPI futures (December contracts): 5,623 (-55)
1. It was another rocky session for US stocks overnight, as the S&P500 erased its 2018 gains while the FAANG group of major tech stocks fell into a bear market, down more than 20% from their June highs.
2. Energy stocks also fell sharply as oil prices got smashed. Brent crude fell almost 7% to around $US62 a barrel — a nine-month low — as markets continue to assess the likelihood of a near-term glut in global oil supply.
3. Risk-off sentiment helped drive demand for the US dollar, and the Australian dollar was hit hard. The oil-sensitive currencies of Canada and Norway were “weakest on the day, with USD/CAD rising above $US1.33 for the first time since June”, Westpac’s Sean Callow said. Here’s the move in the Aussie:
4. Among safe-haven assets, benchmark US 10-year bond yields are trading flat at around 3.06%. The Japanese yen was the second strongest major currency after the US dollar. Strength in the USD weighed on gold, which edged lower to around $US1,221 an ounce.
5. After yesterday’s crash, Bitcoin fluctuated between $US4,300 and $US4,800 overnight and remains under pressure this morning. Here’s the simplest reason we’ve heard for the crypto market meltdown.
6. On the day ahead, ASX futures are pointing lower after the sharp fall in US stocks. The local index has been the worst performer in the Asia-Pacific region over the last three months, but analysts told Bloomberg there’s some upside risk surrounding US-China trade talks at the G20 summit on November 30.
The key events on today’s economic calendar:
- Westpac leading index for the Australian economy.
- US data durable goods orders and existing home sales.
- European Council is is scheduled to issue its response to Italy’s draft budget.
Have a great day.