6 things Australian traders will be talking about this morning

Dean Mouhtaropoulos / Getty Images

Good morning.

To the scoreboard:

Dow: 24,322.34 +238.51 (+0.99%)

S&P 500: 2,666.94 +27.54 (+1.04%)

AUD/USD: 0.7550 -0.0017 (-0.22%)

ASX 200 SPI futures: 5,938 (+44)

  1. US stocks rose strongly overnight, with gains led by the tech sector after a strong round of earnings reports. Facebook rose by more than 9% while Amazon has just smashed profit expectations in after-hours trade. And the ASX is on track for a sharp rise when markets open this morning.
  2. The European Central Bank kept interest rates unchanged. ECB President Mario Draghi pointed to a mixed outlook of the eurozone economy, noting both “underlying strength” and “some moderation” in growth.
  3. That was enough to spark another round of selling in the euro, which hit a three-month low as the US dollar continues to gain momentum. So despite the risk-on tone in global markets overnight, the Aussie is down again this morning with the greenback performing strongly against all major currencies.
  4. The 10-year US treasury yield fell for the first time in more than a week. It inched back below 3%, while the yield on US 2-years also dipped slightly.
  5. Oil continued to push higher, with brent crude closing up 1% at just below $US75 a barrel. Prices for West Texas Intermediate (WTI) oil rose by a smaller 0.2% in the wake of Wednesday night’s huge inventory build.
  6. The leaders of North and South Korea are scheduled to meet in a historic summit today, and Morgan Stanley analysts see upside of 10-15% for South Korean stocks if peace talks continue to progress.

Here’s today’s economic calendar:

  • Australia has quarterly producer price inflation (PPI) data.
  • Leaders of North Korea and South Korea meet.
  • Bank of Japan announces rate decision.
  • The US reports GDP data – Reuters median forecast is for 2% annual growth.

Have a good weekend.

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