Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a 20-point fall on the open, after US markets took a dive overnight.
Nervous bond investors are pushing yields higher, knocking equities lower, as clouds mask economic outlook.
A weak French debt auction, combined with increasing wariness about what lies ahead for global central bank policy, has put traders on the defensive.
Equities fell across Europe and on Wall Street. Selling was broad based with 27 of the 30 Dow Jones’ members lower in late trade in New York, paced by General Electric, Intel and Merck.
What’s on today:
Local data: AiG construction June
Overseas data: China CPI June, PPI June; German industrial production May; UK industrial production May, trade balance May: US non farm payrolls June
Yields have spiked higher for the 10-year US Treasury note the past two weeks.
Yields have spiked higher for the 10-year US Treasury note the past two weeks. Bloomberg
The G-20 summit in Hamburg starts Friday. US President Donald Trump is expected to hold his first meeting with Russia’s Vladimir Putin as well as meet his Chinese counterpart Xi Jinping.
SPI futures down 19 points (-0.3%) to 5680
AUD -0.3% to 75.83 US cents (Overnight range: 0.7577 – 0.7615)
On Wall St, Dow -0.7%, S&P 500 -0.9%, Nasdaq -1%
In New York, BHP +1.5%, Rio-0.4%
In Europe, Stoxx 50 -0.5%, FTSE -0.4%, CAC -0.5%, DAX -0.6%
Spot gold -0.2% to $US1224.53 an ounce
Brent crude +0.3% to $US47.91 a barrel
Iron ore -2.1% to $US61.96 a tonne
Dalian iron ore +0.6% to 469 yuan
LME aluminium +0.8% to $US1944 a tonne
LME copper +0.2% to $US5851
10-year bond yield: US 2.37%, Germany 0.56%, Australia 2.64%
What happened overnight: