Good morning and happy Friday.
To the scoreboard:
- Dow: 25,995.87 +20.88 (+0.08%)
- S&P500: 2,878.05 -10.55 (-0.37%)
- AUD/USD: 0.7197 +0.0007 (+0.10%)
- ASX SPI futures (September contracts): 6,120 (-25)
1. US stocks edged lower overnight as this week’s tech selloff continued, while lingering trade fears weighed on sentiment. And it’s looking like another rough day for the ASX after the index posted two straight 1% falls for the first time since early February.
2. The consultation period for further US tariffs against China is now over, and markets are bracing for the Trump administration to escalate the trade war with tariffs on another $US200 billion worth of Chinese goods. President Trump also hinted overnight that Japan could be next on his list of trade targets.
3. In currencies, risk-off sentiment drove demand for the Japanese yen and Swiss franc, although the Aussie dollar managed to hold its ground at US72 cents ahead of what could be a wild session. The USD was weaker amid a mixed session of key data, before tonight’s all-important US employment figures for August.
4. Oil prices fell for the second straight day, after India announced plans to cut imports from Iran — its third largest supplier — to zero by November, in accordance with US sanctions. Copper and gold both edged higher while iron ore prices surged.
5. Cryptos were little-changed, with Bitcoin holding at around $US6,400 after falling more than 13% in the previous 24 hours. Bloomberg reports that the US-based Kraken crypto exchange — 12th largest in the world by volume — is laying off 57 staff.
6. And US rates edged lower, with US 10-year bond yields falling to 2.88%. Overnight, the Federal Reserve’s Charles Evans said he thought the Fed will need to keep hiking the benchmark cash rate to around 2.75%, from the current range between 1.75%-2%.
Here’s a look at the key events on today’s economic calendar:
- Ai Group construction PMIs in Australia.
- Housing finance data from the ABS (11:30am AEST).
- China foreign exchange reserves this evening (and China trade data tomorrow).
- US employment data for August (forecast 191,000 jobs added).
Have a great weekend.
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