ASX poised for cautious open as trade concerns loom
US:Despite the release of predominantly positive earnings results, US financial markets experienced a tumultuous trading week. Last Friday's session saw the Dow Jones fall 0.3%, S&P 500 dipped 0.7% and the Nasdaq dropped a percent. Trade war concerns remain the main catalyst for selling movement as President Trump mentioned the US are not ready to do "anything" yet whilst also stating the US Government will not do business with Huawei. Earnings season has so far delivered mixed results however earnings per share (EPS) growth for the S&P 500 remains at an average of 5.7% above estimates/expectations (FactSet).
ASX SPI Futures are down 22 points indicating a slow start to the trading week. Our market was unquestionably affected by trade fears with the ASX finishing last week 3% lower. Investors anticipate further earnings releases domestically.
Commodities & Currencies:Global oil prices rose on Friday as supply is reduced in the U.S. Brent crude gained 2.0% to US $54.50 per barrel. Gold futures fell 0.1% to US$1,508.50 an ounce and Iron Ore remained flat at $US94.80 a tonne.AUD is trading at 67.76 US cents.
The spot price of goldis currently down 0.12% at US$1,499.09 per ounce.
The AUD is currently down 0.1% at US$0.6779.
This article was written by Charles Odontuyaa – Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3633.