To the scoreboard:
- Dow: 25,162.41 -137.51 (-0.54%)
- S&P500: 2,818.37 -21.59 (-0.76%)
- AUD/USD: 0.7240 +0.0001 +0.01%
- ASX SPI futures (September contracts): 6,241 (-50)
1. The heavy falls in Chinese stocks yesterday weighed on US markets overnight. Technology and energy companies took the biggest hits after Hong Kong-based internet giant Tencent Holdings reported its first profit decline in 13 years yesterday. ASX futures are sharply lower this morning.
2. Commodities got hammered across the board, as copper prices slumped by around 4% with heavier falls in zinc and nickel. Gold continued its recent decline, and brent crude finished more than 3% lower after a big buildup in US oil inventories.
3. The Turkish lira stabilised overnight, but the US dollar continues to strengthen against other emerging market currencies. It posted more strong gains against the South African rand and Mexican peso and the US dollar index briefly rose to a 14-month high.
4. And the MSCI Emerging Markets index has now fallen into a bear market, as EM stocks fell by the most in six months overnight. Continued pressure on EM currencies and the commodity rout further rattled markets, with the recent trend underpinned by the ongoing withdrawal of US dollar liquidity.
5. It’s jobs day: Monthly employment data for July will be released by the ABS at 11:30am AEST. The median forecast is for another 15,000 jobs to be added after last month’s huge 50,000 increase, with the unemployment rate holding at 5.4%.
6. Elsewhere in global markets, US retail sales beat expectations while the risk-off tone saw bond yields edge lower. Bitcoin has found support after dipping below $US6,000 earlier this week, and is back above $US6,400 this morning.
Here’s a look at today’s economic calendar:
- Jobs data in Australia.
- Telstra, QBE and Origin Energy report earnings.
- Building permit and housing start numbers are out in the US.
Have a great day.
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