6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

  • Dow: 25,387.18 -602.12 (-2.32%)
  • S&P 500: 2,725.88 -55.13 (-1.98%)
  • AUD/USD: 0.7177 -0.0048 (-0.66%)
  • ASX200 SPI futures (December contracts): 5,865 (-66)

1. US stocks fell sharply overnight, led by more heavy losses in the tech sector. Apple fell by almost 5% after two of its suppliers downgraded their outlook, chip-makers got hit hard while industrial giant General Electric fell to a post-financial crisis low.

The weekly move in the S&P500 (Markets Insider)

2. The US dollar index rose to a 17-month high, amid ongoing weakness in the euro and pound and the prospect of further interest rate rises by the US Fed. US bond markets were closed for Veterans Day.

3. The Australian dollar fell back below US72 cents “because of falls in commodity prices and a lift in the USD”, CBA said. The euro is back at a 17-month low with Italy set to present its revised budget to the European Union later tonight, while the pound was the weakest major currency overnight due to Brexit concerns.

4. Gold is under pressure amid more strength in the US dollar while iron ore prices slumped. Oil prices initially rose after Saudi Arabia said recent price falls were enough to warrant production cuts. But brent crude fell back under $US70 a barrel after this tweet from Donald Trump.

5. Another hard-fork is in the works in crypto markets, with Bitcoin Cash set to split on November 15 as developers remain bitterly divided over how to manage the network. The recent lack of volatility in crypto continued overnight, as Bitcoin held steady above $US6,400.

6. And with benchmark US interest rates on the rise, the buildup of corporate debt has been cited as a key risk facing the global economy. Recent data shows investors are still lining up with huge loan offers for loss-making tech giants, with Uber and WeWork both raising debt capital in recent months.

Here are the main events on today’s economic calendar:

  • ANZ weekly consumer confidence index.
  • NAB Business Survey for October.
  • German ZEW business sentiment survey.
  • UK employment data.