ASX to dip at the open as Wall Street reacts to increasing trade tensions

US:

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.

AU:

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.