Tesla CEO Sued by SEC

As markets digested the impact of the rate hike in the US, stocks managed to climb throughout the morning but a steady decline started after lunch. Nevertheless, the major indices managed to close modestly up with the Nasdaq 100 the best performer with an 0.88% gain. The final estimate of US 2nd quarter GDP was released which came out unchanged relative to the prior estimate at 4.2%. The Atlanta Fed GDPnow tracker is currently estimating 3.8% GDP growth for the third quarter. Gold prices dropped at around the time of the GDP release and have settled near a one month low of US $1,183 per ounce.

The weakness in the gold price is corresponding to strength in the US dollar which rallied steadily over the past 24 hours to just regain the 95 level. Rising interest rates in the US at the same time most other central banks are standing firm is driving a resurgence in the US dollar. As a result, the AUD has fallen off its recent highs, currently back at US$0.72   

Tesla (TSLA) CEO Elon Musk has now been officially sued by the Securities and Exchange Commission (SEC) for his misleading tweet regarding taking the company private. The SEC complaint states that Musk made “multiple materially false statements” in his tweets on August 7 and it is seeking to have Musk barred from serving as an officer or director of a public company. The TSLA share price is down 13% in after-hours trading.

European markets also climbed overnight with the FTSE 100 and DAX indices both closing approximately 0.4% higher. ASX 200 futures are up 28 points this morning.

Data Releases:

-    UK Final GDP 6:30pm AEST

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.
comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice and dealing services on securities, derivatives and superannuation (SMSF). Rivkin also provide SMSF administration and accounting services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.