ASX expected for lower open following US market bloodbath
The S&P500 dropped 75 points or 2.59% during last Fridays trading session – this follows an announcement from China stating that it would impose tariffs of $US75 billion on US imports in response to the Trump administration's decision 3 weeks ago to impose further tariffs on a broader range of Chinese goods. The news somewhat agitated trump where only hours later he went into a twitter tirade threatening he would impose even higher tariffs set to take effect next month and during October on Chinese exports. Further to trumps frustration, Chairman of the Federal Reserve Jerome Powell suggested that the Fed would do little to offset the impact of the on-going trade war.
|ASX:ASX futures were down 86 points to 6400 earlier this morning which would bring the market back to levels in June – with the year to date performance of the index still being above 15% positive. This follows a healthy trading week where Australian shares rose firmly on the back of a number of better-than-expected earnings and positive outlook statements from numerous companies. One might thank the strong gains to low interest rates and the start of a small stimulus from tax returns.|
Commodities & Currencies: Spot gold rose 1.9% to $US1526.96 an ounce in New York, lifting the metals year to date return to 19.1% US oil -2.6% down to US$53.91 a barrel.
The spot price of gold is currently up 1.9% at US$1,526.96 per ounce.
The AUD is currently down 0.74% at US$0.6706.
This article was written by 'Luke Bell – Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3633.