ASX to dip at the open as Wall Street reacts to increasing trade tensions
US Indices fell sharply on Tuesday as trade conditions between the US and China deteriorated. The US Commerce Department is expected to add a further 28 Chinese (predominantly technology) companies to a US trade blacklist. The Dow dropped 1.2% whilst the S&P500 and Nasdaq both declined between 1.6-1.7%.The Federal Reserve injected a touch of positive sentiment into the market, expressing a willingness to cut interest rates further if necessary. However, this was overshadowed by news that the US imposed visa restrictions on certain Chinese government officials.
ASX SPI Futures were down 64 points at 8:09am indicating a slow start to the session. The ASX gained for a second consecutive session yesterday (+0.5%) as large Banks and Miners lifted the index.
Commodities and Currencies:
Global oil prices fell on Tuesday as global demand concerns drove prices slightly lower. Brent Crude oil fell 0.2% to US$58.24 a barrel.Gold Futures fell marginally by US 50 cents trading at US$1,503.90 an ounce. Iron ore gained 0.6%.AUD is lower trading at US67.29 cents.
The spot price of gold is currently down 0.1% at US$1,504 per ounce.
The AUD is currently up at US$0.6729.
|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.|