Thanks @Quantum Torus@Ravgnome and AM Loungers. 'Twas pretty lively in the Lounge overnight. Anyone would think it was a Friday.
Now, due to the arrival of Daylight Saving over the weekend, and me based in Qld where we are concerned about fading curtains, my thread will appear an hour later to those states who are participating.
The Australian sharemarket defied global weakness and soaring bond yields as dollar-hedge buying supported the market as the Aussie tumbled to 30-month lows.
The S&P-ASX 200 index jumped 0.8 per cent at the open despite US stocks surrendered early gains lats night after US 10-year bond yields spiked to a seven year high last night following “hawkish” comments from US Federal Reserve chairman Jerome Powell.
But the domestic index slipped to close up 30.2 points, or 0.49 per cent, at 6176.3with miners and financials a both relying in the face of soaring global borrowing costs and a sharply higher US dollar.
The Australian dollar fell US0.9¢ to a fresh 30-month low of US70.80¢, while government 10-year bond yields jumped 7.5 points to 2.714 per cent after the Fed said it could raise interest rates above the “neutral” level if the US economy continued to expand as expected.
The dollar shrugged off the forecast-beating $1.6 billion September trade surplus as it left net-exports “broadly neutral for growth in the September quarter”, according to Westpac economists.
Breaking to a seven-year high, US 10-year bond yields leapt 12 to 3.18 per cent as hit comments followed firmer US jobs and services industry data.
But the blow-out in bond yields poses fresh risk for emerging market economies struggling to repay and rollover existing US dollar borrowings.
Although Chinese markets remained closed for a holiday, the offshore Chinese yuan broke above 6.90 to the US dollar, a level previously seen as a line in the sand for the People’s Bank of China struggling to contain capital outflows.
Bank of New York Mellon strategist Marvin Loh said that while higher than expected average hourly earnings data last month probably acted as a catalyst that pushed yields out of their range, “there has not been a confirming signal from other inflation readings”.
U.S stocks ended sharply lower on Thursday as U.S. Treasury yields continued their ascent to multi-year highs on the latest round of strong economic data, building concerns for an acceleration of inflation.
Based on the latest available data, the Dow Jones Industrial Average .DJI fell 201.05 points, or 0.75 percent, to 26,627.34, the S&P 500 .SPX lost 23.91 points, or 0.82 percent, to 2,901.6, and the Nasdaq Composite .IXIC dropped 145.58 points, or 1.81 percent, to 7,879.51.
Source: Netwealth Morning Business Roundup
A light breakfast of Cous Cous with Fruit and Yoghurt as well as Coffee awaits.
In consideration of others, PLEASE include the STOCK CODE in all your posts.
Happy trading, play nicely and make informed decisions.
