US Stocks Continue Rally

The Dow Jones continued its winning streak overnight although the index did fade from its highs reached early in the session. While the Dow closed up 0.3%, the S&P 500 was virtually flat at +0.09%. ASX 200 futures are flat this morning.

Oil prices are holding well above $70 per barrel with WTI currently at US$71.14 and Brent at US$78.23. These are multi-year highs and represent a year-to-date gain of 17.7% (for WTI). The commitment of Saudi Arabia and the rest of OPEC to the production cuts is a major factor in supporting the price at the moment as well as the possibility of reduced exports from Iran due to sanctions.

Today the minutes of the most recent RBA policy meeting will be released. Rates were left unchanged at that meeting although there is talk of a possible hike towards the end of the year. The RBA is still concerned about weak wages growth and inflation being closer to the bottom end of the target range. 

Data Releases:

-   RBA Monetary Policy Meeting Minutes 11:30am AEST

To view the Rivkin economic calendar and Local Markets matrix, members can click here.

This article was written by William O'Loughlin - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via william.oloughlin@rivkin.com.au or by phoning +612 8302 3633.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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