To the scoreboard:
- Dow: 25,986.92 -137.65 (-0.53%)
- S&P500: 2,901.13 -12.91 (-0.44%)
- AUD/USD: 0.7267 -0.0043 (-0.59%)
- ASX SPI futures (September contracts): 6,336 (+12)
1. After a week of positive US trade news, US stocks fell overnight following reports the Trump administration could follow through with tariffs on another $US200 billion worth of Chinese imports as soon as next week. Trump also repeated his threat to pull out of the World Trade Organisation due to anti-US bias.
2. Renewed trade concerns weighed on commodity-sensitive currencies, and the AUD fell as low as 0.7250 US cents overnight after coming under pressure following yesterday’s miss in Q2 capex data.
3. And it was another brutal session for emerging market currencies. Turkey’s deputy central bank governor resigned, and the lira fell by 5%. Argentina hiked rates by 15%, but the peso still slumped by another 8%. Elsewhere there falls of more than 1% across the board, including the South African rand and Brazilian real.
4. Trade fears and the EM selloff weighed on global risk appetite, and US 10-year bond yields fell three basis to 2.85%. US PCE inflation data showed annual core inflation rose to 2%, falling within the Fed’s 2-3% target band for the third time this year.
5. Oil prices rose again following more global stock draw-downs and continued concerns about Iranian supply. Iron ore’s brief rally ran out of steam, while gold lost ground amid US dollar strength and trade concerns weighed on copper prices.
6. And although the S&P500 fell, Apple stock hit a new record high after the company announced it will unveil the new iPhone on September 12. And rumours have been swirling that Apple may buy Tesla, but Warren Buffett thinks that would be a “very poor idea”.
Here’s a look at the key events on today’s economic calendar:
- In Australia, the RBA has monthly private sector credit data.
- China official government PMI data will be released.
- South Korean construction, industrial production and retail sales.
- Inflation data for France and the Eurozone.
Have a great weekend.
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