To the scoreboard:
- Dow: 24,776.59 +320.11 (+1.31%)
- S&P 500: 2,784.17 +24.35 (+0.88%)
- AUD/USD: 0.7462 -0.0005 (-0.07%)
- ASX200 SPI futures (September contracts): 6,267 (+27)
1. US stocks led global markets higher overnight as political chaos in the UK and global trade tensions took a back seat ahead of earnings season. The Dow Jones industrial average rallied by more than 300 points, lifted by bank stocks.
2. Brexit fights have thrown the British government into disarray. Three members of Prime Minister Theresa May’s cabinet – Boris Johnson, David Davis and Steve Baker – resigned over the past day amid negotiations on how to move forward with the controversial plan to leave the European Union. May has pushed for keeping some ties with the EU that hard-Brexit advocates see as nonstarters.
3. The UK pound had a volatile session amid the government chaos, initially pushing higher on news of Davis’ departure before a sharp fall in the wake of Johnson’s resignation. It subsequently recovered slightly off overnight lows:
4. Economic benefits from President Donald Trump’s sweeping tax overhaul could fall short of expectations, according to Fed officials. Many analysts are “overly optimistic” about the $US1.5 trillion tax-cut law passed last year, economists at the San Francisco Federal Reserve said in a new report.
5. Oil prices rose as traders mulled mounting supply disruptions. Brent, the international benchmark, jumped 1.2% to $US78.23 a barrel.
6. Bitcoin continued to edge higher overnight, although a survey of crypto experts by New York law firm Foley & Lardner found most respondents said they think ethereum is a better investment. And Google co-founder Sergey Brin says he’s been mining ethereum with his son.
Here’s a look at today’s economic calendar:
- NAB business survey in Australia (11:30am AEST)
- CPI & PPI data out of China.
- GDP, manufacturing, and trade numbers are out in the UK.
- ZEW business sentiment survey in Germany.
- Trump announces a Supreme Court nominee to fill the spot left by retiring Justice Anthony Kennedy.
Have a great day.