To the scoreboard:
- Dow: 24,700.21 -287.26 (-1.15%)
- S&P 500: 2,762.57 -11.18 (-0.40%)
- AUD/USD: 0.7377 -0.0003 (-0.04%)
- ASX200 SPI futures (September contracts): 6,086 (+37)
1. Global markets shuddered overnight in the wake of President Trump’s threat to put tariffs on another $200 billion worth of Chinese goods, which China then called a form of blackmail. European markets fell by 1% and the Dow Jones turned negative for the year amid its longest losing streak since March 2017.
2. ASX futures traders are still confident of another good start for the local index, despite a poor lead for the big miners after iron ore prices slumped by 3%. All eyes will then turn to markets Shanghai at 11:30am AEST following yesterday’s heavy falls.
3. With trade tensions between the US and China soaring, Russia is also pushing back on US tariffs. Economy Minister Maxim Oreshkin said Moscow will roll out import duties on US road-building machinery, in response to the Trump administration’s steel and aluminium worldwide import tariffs.
4. The US dollar index rose to an 11-month high above 95, although most of the major pairs — including the Aussie — bounced off their overnight lows as the USD failed to break higher. US treasury yields were little-changed after benchmark US 10-year yields fell below 2.9% yesterday in Asian trade.
5. Oil prices slid ahead of an OPEC meeting in Vienna on Friday. Oil ministers, led by Saudi Arabia and Russia, are expected to ease supply cuts amid output disruptions from several member countries including Iran — which said a consensus on supply increases is unlikely to be reached this week.
6. In a reversal, the European Central Bank said it could continue its large-scale stimulus program next year.ECB President Mario Draghi said at a conference in Portugal that it may postpone an end to its bond-buying program, a move announced by the central bank just last week.
And a look at the upcoming economic calendar:
- Minutes from the Bank of Japan meeting on monetary policy.
- Quarterly trade data, monthly existing home sales, and weekly oil numbers are due out in the US.
- Central bank leaders from the US, Australia, and Japan speak at an ECB forum in Portugal.
Have a great day.
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