To the scoreboard:
- Dow: 26,405.76 +158.80 (+0.61%)
- S&P 500: 2,907.95 +3.64 (+0.13%)
- AUD/USD: 0.7263 +0.0044 (+0.61%)
- ASX200 SPI futures (December contracts): 6,182 (-4)
1. US stocks rose again overnight, as markets continued to shrug off the latest escalations in the US-China trade war and attention turned to some positive economic data.
2. The Aussie dollar rose further, after posting steady gains in Asian trade yesterday following a pledge from Chinese Premier Li Keqiang that China will keep its currency stable. Emerging market currencies also gained ground.
3. On the US data front, new housing starts jumped higher than expected in August while the current account deficit narrowed in Q2. The trade gap fell by 17% from Q1 to $US121.76 billion amid a surge in exports.
4. Bond watch: Benchmark US 10-year treasuries briefly rose as high as 3.09% — the highest level since May — before edging back to around 3.07%. US 2-year yields dipped slightly which left the yield curve at around 27 basis points.
5. It was a volatile session for the UK pound, which briefly rose above $US1.32 after another strong inflation print, before losing ground when UK Prime Minister Theresa May indicated she would reject a revised Brexit offer from the EU on the Irish border issue.
6. And it was an even more volatile session for Canadian pot producer Tilray. The stock surged by as much as 93% after the company said it had received approval from the Drug Enforcement Administration to export medical marijuana to the US. That was followed by an equally sharp plunge before the shares went into a trading halt.
Here’s a look at the key events on today’s economic calendar:
- The RBA bulletin (11:30am AEST) and annual reports (3:30pm AEST).
- Retail sales numbers are out in the UK.
- The US has jobless claims and the Philly Fed manufacturing index.
- South African central bank monetary policy announcement.
Have a great day.
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