To the scoreboard:
- Dow: 25,044.29 -13.83 (-0.06%)
- S&P500: 2,806.98 +5.15 (+0.18%)
- AUD/USD: 0.7382 -0.0050 (-0.67%)
- ASX SPI futures (September contracts): 6,185 (+17)
1. Another rise in bond yields was the main story overnight, following yesterday’s news that the Bank of Japan may be considering a policy shift. The yield on US 10-year bonds — the global benchmark — rose by seven basis points to 2.96%, and the spread between US 2-year and 10-year yields climbed to a three-week high.
2. Global stocks had a relatively calm session, as US markets traded flat with earnings season now in full swing. S&P500 futures are higher following a big earnings beat from Google after markets closed, and ASX futures traders have marked the local index higher this morning.
3. In the wake of rising bond yields, the US dollar index posted a 0.2% gain to halt a two-day losing streak. There are also expectations in the market that this Friday’s US Q2 GDP print will climb above 4%. The AUD is back below US74 cents this morning after failing to break above recent resistance.
4. Gold and copper both drifted lower amid strength in the USD, while oil initially rose on the latest round of US-Iran tensions before reversing it’s gains. Iron ore rose to the highest level since June 26.
5. Shares in Amazon fell by as much as 2.4% before closing 0.65% lower, after President Trump took aim at the company on Twitter. Trump claimed the e-commerce company takes advantage of the US Postal Service and attacked the Jeff Bezos-owned Washington Post.
6. And while some major cryptocs — including ethereum and litecoin — dipped lower overnight, Bitcoin continues to climb, gaininig another 4.3% to be back above $US7,700 this morning.
Here’s a look at the key data points on today’s calendar:
- “Flash” PMI data for Japan, the Eurozone and the US ahead of finalised figures next month.
- Richmond manufacturing index from the US Fed.
Have a great day.
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