MARKET SNAPSHOT –
- SPI200 futures closed up 9 pts to 5945
- SP500 futures closed up 6.50 pts to 2387
- FTSE100 futures closed flat at 7165 (Closed)
- DAX30 futures closed flat 12467.50 (Closed)
- GOLD finished down $10.90 to $1257.40 an ounce
- COPPER futures finished up $5.10 to $265.85 a pound
- OIL futures finished down $0.59 to $48.74 a barrel
- CRB Index finished down 0.12 pts to 183.14
- AUDUSD trading at 0.7525
- EURUSD trading at 1.0899
- GBPUSD trading at 1.2885
- USDJPY trading at 111.8300
A good start to the week for the US with a positive close as the technology and financial sectors pacing the advance. The US opened strong as news flowed out of the nations capital that a government shutdown was avoided thanks to agreement between congressional leaders for funding to through September. The market then sold off as Trump mentioned that he may favor breaking up the nations biggest banks. Trump also mentioned that he was open to raising the federal tax on gasoline in order to finance his infrastructure package. Trump will likely continue to play with different tax ideas as he looks to supplement the tax reform package. Europe was closed for Labor day.
US Treasury Secretary Steven Mnuchin said on Monday that economic growth of 3% is achievable in the next two years after just days ago showing growth of 0.7% for the past three months. Mnuchin said tax reform and regulatory relief will help spur economic growth and ‘The tax plan is our version of a jobs bill’.
Gold found selling to begin the week as there was no further developments on the geopolitical front and safe haven buyers disappeared. Oil grinded lower as news flow on OPEC was scarce.
The USD rose as US interest rates for June came back into focus. The currency shrugged off negative data to push higher against a basket of currencies. The Pound found some selling while the EURO was steady. The AUD may see some action over the RBA cash rate announcement but did see buying overnight into the data release.
The ASX200 is expected to open higher around 10/15 points but should be contained into the RBA announcement at 2:30pm.
ECONOMIC DATA OUT TODAY (AEDT) –
CNY Caixin Manufacturing PMI 11:45am
AUD Cash Rate and RBA Statement 2:30pm
JPY BOJ Core CPI 3pm
GBP Manufacturing PMI 6:30pm
EUR Unemployment Rate 7pm
ASX200 INTRADAY LEVELS TO WATCH – (Some data missing on ASX200 Chart)