ASX Expected to Open Slightly Lower
The three main US indexes all closed lower on Friday with the Dow falling 0.26% to 26,820.25, the S&P500 recorded a loss of 0.53% closing at 2,961.79 and the Nasdaq was the worst performer recording a loss of 1.13% ending the trading day at 7,939.63. The retracement occurred after Bloomberg reported that the US was considering limiting investments into China and delisting US-listed shares of Chinese companies.
The Australian market is expected to open slightly lower following the US. Investors are expected to wait on the RBA's decision tomorrow to either hold or cut rates. It is widely expected the RBA will cut rates by 25 basis points given positive traction in the housing market as well as the RBA missing both its full-employment and inflation targets.
Commodities and Currencies:Oil prices fell sharply on Friday with Brent ending up on $61.81 a barrel, representing a 4% loss over the week. This is expected to continue this week due to a faster than expected recovery of Saudi output and a slowing Chinese economy. Spot gold fell on Friday by 0.4% to $1,499.22 per ounce, thanks largely due to US data indicating strong new home sales and a strong US dollar. The AUD was up 0.2% to 67.64 US cents and will likely remain stable until tomorrow's RBA meeting.
The spot price of gold is currently down at US$1,497 per ounce.
The AUD is currently up at US$0.6762.
|This article was written by Alex Single – Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3633.|