Impeachment Uncertainty Creating Cloud Over Markets
|Global:The greater indices finished the trading session 1% lower following comments from President Trump mentioning he'll be taking a harsh stance against China's approach to trade as well as an official announcement that President Trump will face a formal impeachment enquiry after speaker Nancy Pelosi and other democrat leaders took a strong stance stating that the President had violated the constitution by abusing his power to smear former Vice President and front runner for the 2020 Democratic presidential nomination Joe Biden. This also follows new as Britain's highest court has ruled that PM Boris Johnson's suspension of parliament was illegal – Mr Johnson accepted the court's decision but would continue with plans to unveil a new legislative agenda.|
ASX futures down just over 1% today at 7am AEST. A morning note from NAB senior FX strategist Rodgrido Catril has mentioned that it is very likely the RBA will be cutting rates next week following employment data, downside risk to global growth and subpar growth in GDP.
Yesterday's trading session ended with the market near flat as resource stocks weighed heavy on the index.
Commodities and Currencies:
The negative impact of the trade war seems to be keeping copper at its support levels with the London Metal Exchange little unchanged at $US5780 a tonne.
Spot Gold +0.6% to $US1530.88 an ounce at 2.50pm New York time.
US oil -2.3% to $us57.31 a barrel.
Iron ore -3.5% to $US90.83 a tonne.
The spot price of gold is currently up 0.6% at US$1,530.88 per ounce.
The AUD is currently up 0.15% at US$0.6794.
This article was written by Luke Bell – Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3633.