To the scoreboard:
- Dow: 24,283.11 +30.31 (+0.12%)
- S&P500: 2,723.06 +5.99 (+0.22%)
- AUD/USD: 0.7393 -0.0021 (-0.28%)
- ASX SPI futures (September contracts): 6,136 (-16)
1. Brent crude oil rose back above $US76 a barrel, after the US state department announced that countries have until November to cut oil imports from Iran to zero or they could face US sanctions. Prices for US West Texas Intermediate (WTI) crude climbed by almost 4%.
2. Amid the rise in oil prices, energy stocks got a boost and along with a rebound in the tech sector, US stocks managed to recover some of the previous session’s falls overnight. It was a fairly tentative rally though and the local index is pointing lower again after losing ground yesterday.
3. US giant General Electric rose by almost 8% — its biggest one-day climb in three years — after the company said it will spin off its healthcare business and split from oil giant Baker Hughes. As it shifts focus to aviation, power, and renewable energy, the company is betting the massive reorganization will strengthen its balance sheet.
4. Robert Kaplan, the president of the Dallas Fed, said overnight that the US should dial back its trade rhetoric against Mexico and Canada, and focus on China. Kaplan said China poses a serious trade threat when it comes to technology and intellectual property.
5. The US dollar index pushed higher amid weakness in the euro, which lost ground as markets assess the potential fallout from lingering trade tensions. The AUD also came under pressure and is back below US74 cents this morning, while China’s renminbi fell to a new six-month low.
6. Markets wrap: Prices for iron ore bounced higher overnight, while gold continues to drift lower and is now below $US1,260 an ounce. Bitcoin dipped by around 1% and is trading below $US6,200 this morning. Benchmark 10-year bond yields were little-changed at 2.88%, and the Socceroos got bundled out of the World Cup with a disappointing 2-0 loss to Peru.
Here’s a look at the upcoming economic calendar:
- Monthly core durable goods and weekly crude numbers are out in the US.
- New Zealand trade data.
Have a great day.