To the scoreboard:
- Dow: 25,971.06 +113.99 (+0.44%)
- S&P500: 2,887.89 +10.76 (+0.37%)
- AUD/USD: 0.7118 +0.0003 (+0.04%)
- ASX SPI futures (September contracts): 6,162 (-14)
1. US markets put aside lingering trade fears overnight, as the big tech companies resumed their rally and energy stocks rose after a spike in oil prices. But ASX futures traders are less confident the local index will repeat yesterday’s gains.
2. A Category 4 hurricane is due to make landfall on the East Coast of the US this week, with experts expecting it to cause “catastrophic” flash flooding and winds. Oil prices jumped about 3% as Hurricane Florence made its way toward the Carolinas and Virginia. Meanwhile, US insurance and construction stocks took a beating.
3. With markets still braced for President Trump’s next tariff announcement, China now plans to ask the World Trade Organisation for permission to hit the US with separate sanctions, citing non-compliance with a ruling over dumping duties.
4. Elsewhere, US bond yields are back on the rise. Benchmark 10-year yields climbed four basis points to 2.97%, as US Treasury completed a $US35 billion issue of 3-year debt at 2.812% — the highest yield since 2007.
5. In currencies, the UK pound initially climbed after some solid wage growth data before finishing flat, while the Canadian dollar had a strong late rally amid optimism on a NAFTA trade deal. Cryptos are still under pressure as Bitcoin fell below $US6,300.
6. And while the overnight tech rally was led by Apple, Netflix and Atlassian, shares in Tesla fell by more than 2%. Nomura analyst Romit Shah — a former Tesla bull — said the company is “no longer investable“, citing the “erratic behaviour of CEO Elon Musk”.
It’s a relatively economic calendar today, with local data highlighted by Westpac’s consumer confidence index this morning.
Have a great day.
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