To the scoreboard:
- Dow: 25,187.70 -125.44 (-0.50%)
- S&P500: 2,821.93 -11.35 (-0.40%)
- AUD/USD: 0.7274 -0.0010 (-0.18%)
- ASX SPI futures (September contracts): 6,205 (+5)
1. The fallout from the selloff in the Turkish lira continued to unsettle global markets overnight, although falls for US and European stocks were relatively limited. Turkey’s BIST100 index fell by 2.4% after the Turkish central bank pledged to maintain stability in the financial system.
2. The lira is still under pressure this morning but is holding within yesterday’s range against the USD. The US dollar index briefly hit a 12-month high before losing ground, with most major currency pairs little-changed from yesterday’s levels.
3. Argentina’s central bank unexpectedly hiked interest rates by 5% overnight, with the benchmark cash rate raised to 45%. The Argentine peso clawed back some ground to finish around 2.5% lower against the USD.
4. Gold has fallen below $US1,200 an ounce for the first time since December 2016, while oil prices initially fell by around 2% before paring losses late in the session.
5. Bitcoin had a fairly wild ride overnight, trading between $US6,100-$US6,500. And there was a heavy selloff in ethereum — the world’s second-largest cryptocurrency — which one analyst attributed to ICO projects cashing out of their crypto capital raisings to fund operations.
6. And Tesla shares closed slightly higher after Elon Musk explained what he meant by “funding secured”. Musk said the Saudi sovereign wealth fund has discussed taking the company private, although there are doubts about whether Saudi investors could fund the privatisation by themselves — and we can count rapper Azealia Banks as one of the Tesla sceptics.
Here’s a look at today’s calendar:
- Key data in Australia will be led by NAB’s Business Survey for July (11:30am AEST).
- Chinese data dump: Retail sales, industrial production and fixed asset investment for July.
- UK employment data.
- German Q2 GDP and the ZEW survey of German business sentiment.
- Second reading of Eurozone Q2 GDP.
Have a great day.
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