ASX is expected for a positive opening this morning with SPI currently up by 5 points with Australia election done and results are set to dominate early headlines today.
There were mixed results in US & European markets with Dow Jones closed down 0.4%, S & P down 0.6% & Nasdaq down 1%. In Europe, FTSE down 0.1%, CAC down 0.2% & DAX down 0.6%.
In Commodities, Gold closed down 0.7% to US $1277.53 an ounce, Brent Crude Oil down 0.6% to US $72.21 a barrel, US Oil down 0.2% to US $62.76 a barrel with Iron Ord up 2.5% to US 101.71 a tonne.
Investors will be looking ahead for the latest from the Reserve Bank tomorrow as bets continue to rise on interest rate cuts. Governor Lowe might also take the opportunity to remind the market that the bank remains committed to its inflation target. Some commentators have suggested that the RBA should lower its 2-3% target or consider alternatives such as targeting nominal income. Another weak GDP would mark three consecutive quarters of weakness, marking it unlikely that the RBA will achieve its forecast that the annual growth will rebound to 2.6% by end of 2019.
In US, the market closed lower on Friday as continuing trade tensions pulled industrial and tech shares down. The 3 major US indexes struggled for direction for much of Friday, it turned decisively negative following a report from CNBC that US-China trade negotiations have stalled again.
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DATA RELEASES THIS WEEK:
USD – Fed Chair Powell Speaks
AUD – Monetary Policy Meeting Minutes
GBP – Inflation Report Hearings
NZD – Retail Sales q/q
AUD – RBA Gov Lowe Speaks
GBP – CPI y/y
CAD – Core Retail Sales m/m
USD – FOMC Meeting Minutes
EUR – French Flash Manufacturing PMI, German Flash Manufacturing PMI & European Parliamentary Elections
GBP – Retail Sales m/m
EUR – European Parliamentary Elections
USD – Core Durable Goods Orders m/m