To the scoreboard:
- Dow: 25,414.10 +172.16 (+0.68%)
- S&P500: 2,846.07 +25.67 (+0.91%)
- AUD/USD: 0.7452 +0.0031 (+0.41%)
- ASX SPI futures (September contracts): 6,199 (+8)
1. US stocks rallied strongly into the close, following news that President Trump had secured a preliminary deal with the European Union on trade. Stocks in Europe will have some catching up to do after closing lower before the trade deal was announced, while ASX futures are pointing higher this morning.
2. The euro rose back above $US1.17 following the news, as the USD weakened against all the major pairs. That helped push the Aussie dollar further above US74 cents after it briefly fell below that mark in the wake of yesterday’s soft inflation print.
3. Facebook closed at an all-time high, but shares in the tech-giant slumped more than 20% in after-hours trade after Q2 revenue missed forecasts. Elsewhere, another solid batch of earnings reports helped underpin early gains on the S&P500, which closed just shy of all-time highs reached in January.
4. Oil prices found support after a larger-than-expected draw in weekly inventory data, which showed US crude stockpiles fell to the lowest level since 2015.
5. Bitcoin eased back from yesterday’s highs overnight but is holding above $US8,000. The recent bounce has been accompanied by a rise in trading activity, with daily turnover for CME bitcoin futures contracts climbing from 1,600 on July 3 to almost 13,000 on July 24.
6. Benchmark US 10-year yields rose by 3 basis points to 2.97% in the wake of the trade news, while a weaker US dollar helped provide support for gold. In other commodities, copper prices got a boost while iron ore continues to grind higher.
Here’s a look at the upcoming economic calendar:
- The European Central Bank’s policy meeting will be the main event tonight.
- The US has trade data, durable goods orders, jobless claims, and wholesale inventories.
Have a great day.
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