ASX poised to drop at the open following modest losses on Wall Street
U.S Markets declined slightly overnight as trade tensions weighed on investor sentiment yet again. President Donald Trump accused China of not delivering on trade promises. The Dow Jones rallied intraday, finishing only 0.1% lower after dropping as much as 151 points earlier in the session. The S&P 500 fell 0.3% and the Nasdaq dropped 0.2%.
Investors were also cautious as they anticipated the Federal's Reserve's interest rate decision, jobs data (later in the week) as well as further corporate earnings reports, particularly Apple which is set to report today. More than half of S&P 500 companies have reported so far with over 75% of them posting better than forecasted profit (FactSet Data).
ASX Futures are down 28 points pre-market, indicating a slow start to the trading session. The Australian market surpassed previous all time highs yesterday, closing at 6,845.1 points (previous high: 6,828.7 in November 2007). Given the high valuation of the market, local investors also anticipate the approaching Aussie earnings season.
Commodities and Currencies Global oil prices were higher on Tuesday as the market expects a 25 basis point rate cut by the Federal reserve and US Crude inventories decreased over the past week. Brent crude rose 2.1% trading at US$64.72 a barrel.
Gold was 0.7% higher at US$1,429.70 an ounce and Iron ore is also increased 2.3% at US$121.15 a tonne. AUD fell slightly trading at 68.74 US cents
This article was written by Charles Odontuyaa – Investment Account Manager, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.