Weekly Market Updates 22/07/2019
ASX is set for a lower opening today’s trade with SPI currently down 26 points at 6166. This is on the back of mixed results across US & some European markets. Dow Jones closed down 0.3%, S & P down 0.6% with Nasdaq down 0.7%. In Europe, FTST closed higher at 0.2%, CAC closed flat with the DAX closed up 0.3%.
In Commodities, Gold closed down 1.4% to US 1425.37 an ounce, Brent crude closed up higher 0.9% to US 62.47 a barrel with US oil closed up 0.6% to US 55.63 a barrel. Iron Ore surged 1.6% to US 121.79 a tonne.
Investors had to re-positioned this time for a more modest rate cut by the US Central bank when its policymakers gather next week. Pricing for a potential 50 bpts rate cut gamed Wall Street on Friday before the NY Federal Reserve said investors were ready far too much into the academic review by its president John Williams. As a result, bets on that 50 bpts cut tumbled and investors were being told to reset for a 25 bpts cut instead. On Friday, the US will release advance second quarter growth data expecting GDP to advance a near trend 2% q/q down from a strong 3.1% in Q1.
In Europe, shares ended only marginally higher on Friday as worries about the stability of Italy’s government dented optimism from renewed signals that the US Feds will cut interest rates soon.
In China, Shanghai Composite Index closed 0.8% higher to 2924.20. Nikkei also closed 2% higher to 21,466.99 following a 2% slump on Thursday.
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DATA RELEASES THIS WEEK:
JPY – BOJ Gov Kuroda Speaks
AUD – RBA Assist Gov Ken Speaks
EUR – French Manufacturing PMI & German Flash Manufacturing PMI
EUR – Main Refinancing Rate, Monetary Policy Statement & ECB Press Conference
USD – Core Durable Goods Orders m/m
USD – Advance GDP q/q