To the scoreboard:
- Dow: 26,562.05 -181.45 (-0.68%)
- S&P 500: 2,919.37 -10.30 (-0.35%)
- AUD/USD: 0.7252 -0.0025 (-0.34%)
- ASX200 SPI futures (December contracts): 6,182 (-6)
1. Benchmark crude oil rose above $US81 a barrel overnight for the first time since 2014. It followed OPEC’s decision at the weekend not to fast-track an increase in output. JP Morgan said the effect of President Trump’s Iran sanctions could drive oil above $US90 a barrel.
2. Oil prices gave energy stocks a boost, but lingering trade fears continued to weigh on global markets. ASX futures traders have taken another nine points off the local index, as China said it won’t back down to what it called the Trump administration’s “trade bullyism.”
3. The euro initially spiked after ECB President Mario Draghi said he expected a “vigorous” pickup in Eurozone inflation, but gave back those gains as the US dollar found momentum. The Aussie dollar continued to drift lower, while the Turkish lira spiked after reports local authorities may release a US pastor currently imprisoned there.
4. US bond yields continued to push higher ahead of the US Fed’s rates announcement on Wednesday night, with benchmark US 10-year yields rising to 3.09%. The yields on German, French, UK and Italian debt also rose sharply following Draghi’s comments.
5. Chaos in Washington has Wall Street on edge. Axios reports Deputy Attorney General Rod Rosenstein, who oversees the Mueller investigation, is considering resigning after he was said to have discussed invoking the 25th Amendment to remove President Donald Trump from office. Following the explosive report, White House Press Secretary Sarah Sanders saidRosenstein will meet with the president on Thursday.
6. And Canadian wealth management firm Gluskin Sheriff released a 105-page slide deck last week, arguing markets are near the top of the cycle and investors should be braced for a correction. Here are four charts that caught our eye.
Today’s economic calendar:
- ANZ weekly consumer confidence reading in Australia.
- Minutes from Bank of Japan’s September meeting and a speech from BoJ governor Kuroda.
- German wholesale prices and French business confidence index.
- Case-Shiller home price index and the Richmond Fed manufacturing index in the US.
Have a great day.
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