ASX set to rise following Wall Street Rally
ASX futures were down just over 20 points at 8am with expectations that today's trading session could see the market shift lower. This follows a relatively stable trading session overnight in the US which is a sure sign of relief following the previous week's worth of volatility. Market sentiment still seems to be on shaky grounds but investors were given a few tell-tale signs of relief following further comments from president Trump stating that the a trade war with China would be "fairly short" and that he also thinks China will not retaliate if the US raises further tariffs. President Trump will certainly have a close eye on him during his upcoming phone call scheduled with Xi Jinping and next meeting with Chinese officials which is scheduled for September. Debate still swings as to how to interpret what is happening with bond yields with some analysts pointing out that the Fed along with President Trump won't want to risk a fall in US stock prices – leading many to believe further interest rate cuts are on the horizons.
|ASX:ASX futures are 41 points higher pointing towards a positive start to the week. Last week our index shed 2.7% amidst geo-political tensions and global recession fears. The Australian reporting season continues this week as investors anticipate results from BHP, Altium, Wisetech and A2 Milk amongst many others.|
Commodities & Currencies: Global oil prices rose modestly on Friday with Brent Crude 0.7% higher. Gold futures fell 0.5% to US$1,523.60 and iron ore gained 0.8% to US$89.55 a tonne.AUD is trading at 67.86 US cents.
The spot price of gold is currently down 0.71% at US$1,512.60 per ounce.
The AUD is currently up 0.07% at US$0.6784.
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.