To the scoreboard:
- Dow: 24,117.59 -165.52 (-0.68%)
- S&P500: 2,699.63 -23.43 (-0.86%)
- AUD/USD: 0.7344 -0.0048 (-0.65%)
- ASX SPI futures (September contracts): 6,127 (-11)
1. US stocks slumped after another rough session on Chinese markets yesterday, as rising trade tensions continue to weigh on investor sentient. With continued weakness in global markets the ASX looks set to open lower this morning.
2. Falls in the US erased gains from earlier in the day, as markets briefly rallied after the Trump administration softened its tone on trade with China. Officials said any investment restrictions imposed on Beijing will happen through existing laws, as opposed to executive action.
3. The US dollar index is trading just off its 2018 high this morning as the greenback gained ground against all the major pairs. The AUD got hit hard — its slightly off the overnight low of 0.7329 US cents but is still under broader downside pressure.
4. Strength in the US dollar came amid a sharp fall in bond yields, as risk-off sentiment drove a 6 basis-point decline in benchmark US 10-year bonds, which fell to 2.82.%. There was also a data miss as US business spending on equipment unexpectedly slipped in May.
5. Oil rallied to a fresh 2018 peak as US crude saw its biggest drawdown since September 2016. West Texas Intermediate cracked $US73 a barrel, its highest level this year. Also offering support to crude, the US signalled zero-tolerance approach to its demand for countries to stop buying Iranian oil by November.
6. And the US Justice Department gave Disney the go ahead for its $US71 billion bid for 21st Century Fox. The approval, which requires that Disney divest Fox’s regional sports networks, is the latest move in a bidding war for the company between Disney and Comcast.
Here’s a look at the upcoming economic calendar:
- Reserve Bank of New Zealand interest rate announcement.
- ABS job vacancy data.
- Japan retail sales.