AXS are poised to open higher with SPI currently up by 29 points. This is on the back of some positive closes in both US & European markets on Friday.
Dow Jones closed up 0.4%, S & P up by 0.4% & Nasdaq closed up by 0.1%. In Europe, FTSE down 0.1%, CAC up by 0.3% & DAX closed higher up by 0.7%. While talks in Washington last week failed to concluded with an agreement between US & China, both sides called the negotiations “constructive” and China said the talks would resume in Beijing. China’s equity market has improved dramatically and help improve their perceived negotiating position while US markets have fully recovered from the trade wall sell-off, the data point to a soft landing and the Fed has signaled that it will do what it takes to sustain a strong labor market and inflation pressure. Over the weekend IFM expands in US with $9.3b pipeline acquisition. IFM investors continued its expansion into the US energy sector with the $9.3b purchase of Houston-based pipeline operator Buckeye.
In Commodities, Gold ended the week higher up by 0.2% to US 1286.05 a ounce, Brent Oil up by 0.3% to US $ 70.62 a barrel, US Oil up closed lower down 0.1% to US $61.66 a barrel. Iron Ore up by 2% to US $97.24 a tonne. AUDUSD ended the week higher up by 0.2% to US 0.7002 cents.
As it is election week in Australia and we have limited data this week. On Wednesday, we have the Wage Price Index in Australia and Retail Sales numbers due out in the US. On Thursday, we have employment numbers due out in Australia with the market expecting 15,200 job created in the month of April and unemployment to remain at 5%.
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DATA RELEASES THIS WEEK:
GBP – Average Earnings Index 3m/y
AUD – Wage Price Index q/q
CAD – CPI m/m
USD – Core Retail Sales m/m & Retail Sales m/m
AUD – Employment Change & Unemployment Rate
CAD – BOC Gov Poloz Speaks