To the scoreboard:
- Dow: 25,857.07 -59.47 (-0.23%)
- S&P500: 2,877.13 +5.45 (+0.19%)
- AUD/USD: 0.7112 +0.0007 (0.02%)
- ASX SPI futures (September contracts): 6,139 (+2)
1. US stocks edged higher overnight in a quiet session on global markets, as the S&P500 ended a four-day losing streak. ASX futures are flat and Chinese markets will be in focus at 11:30am AEST after heavy falls in Shanghai yesterday.
2. Trade tensions still linger, with the Trump administration expected to announce whether it will follow through with proposed tariffs on roughly $US200 billion worth of Chinese products. Apple warned over the weekend that tariffs could force the technology giant to raise prices.
3. But US stock investors appeared more focused on developments in Washington. With midterms just two months away, House Republicans are planning to roll out a second round of tax cuts this week. But the bill may face an uphill battle, with some concerned efforts to bolster Trump’s $US1.5 trillion tax overhaul could backfire as the federal deficit races to unprecedented heights.
4. In currencies, the main mover was the UK pound after the EU’s chief negotiator Michel Barnier said its possible a Brexit deal could be struck in as little as 6-8 weeks. Sterling rose by more than 1% on the news.
5. The yield on US 2-year treasuries edged up to a new decade-high of 2.72%, while benchmark US 10-year yields held steady at 2.94%. And Italian 10-year yields fell by another 13 basis points to 2.74%, amid easing concerns around Italy’s economic outlook.
6. And cryptocurrencies remain under pressure as Bitcoin dipped below $US6,300 overnight. But there’s still plenty of crypto activity on Wall Street, with Citigroup working on a low-risk trading product while the Gemini exchange run by the Winklevoss twins plans to launch a crypto coin pegged to the US dollar.
Here’s a look at the key events on today’s economic calendar:
- Australia has the NAB business survey for August (11:30am AEST).
- Unemployment data in the UK.
- Employment figures and ZEW business survey in Europe.
Have a great day.
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