To the scoreboard:
- Dow: 25,413.22 +123.95 (+0.49%)
- S&P 500: 2,736.27 +6.07 (+0.22%)
- AUD/USD: 0.7305 -0.0029 (-0.40%)
- ASX200 SPI futures (December contracts): 5,739 (+17)
1. ASX futures closed slightly higher on Friday after the S&P500 held steady to end the week. US tech stocks were mixed, but energy stocks got a boost as oil continued to rally off its recent lows. Myer shares will be in focus when the ASX opens at 10am AEDT, after the company released updated trading results on Friday night.
2. It was a strong session for the Australian dollar, which closed above US73 cents for the first time since August amid a broader round of US dollar weakness. That followed another cautious round of commentary from the US Fed, but renewed trade tensions have weighed on the Aussie this morning.
3. The US-China trade war flared up again over the weekend, with some strong rhetoric on tariffs by US Vice-President Mike Pence on Saturday. Then there was some chaos at the APEC Summit in Port Moresby yesterday, as leaders failed to agree to a consensus regional agreement for the first time in 25 years.
4. US 10-year bond yields fell back to 3.08%, and after holding above a 70% probability level in recent weeks, CME’s Fedwatch tool now assigns a 65.4% probability of another Fed rate hike in December.
5. The UK pound held steady against the US dollar, with the draft Brexit deal scheduled to go before the European Council next Monday. It will then have to be approved by UK parliament, which is shaping up as a tall order. Here’s a useful rundown of what will happen if British lawmakers reject the draft deal.
6. The week ahead: It’s a quiet week of key data both at home and abroad, so market moves by developments in the areas of policy, politics and trade. This week’s full calendar is here.
Have a great week.