ASX poised for relatively flat start as Wall Street Rallies

US markets dropped steeply to resume the rest of the trading week, the Dow Jones plunging 780 points in the first half of the session. Why? A variety of geo-political influences ranging from trade concerns to fears of a slowing global economy. The catalyst for the sell-off was arguably news that the CFO of Chinese Telecommunications Giant Huawei was arrested for allegedly violating Iran sanctions.

However the markets rallied approximately around midday, boosted by an announcement by the Federal Reserve indicating a more cautious approach on increasing interest rates. Numerous economists shared the view that the market was heavily oversold and sought after good opportunities. The Dow Jones and S&P 500 finished 0.3% and 0.2% lower respectively whilst the NASDAQ ended the session higher 0.4%.

ASX SPI futures are down 3 points pointing towards a potentially flat open. The AUD is trading at 72.13 US cents, Brent Crude Oil fell to $58.66 USD per barrel and the US 10 year bond yield is at 2.86%.

Overseas: US Non-farm payroll, Chinese CPI November.

Market Data:

US – Employment Data 11:30pm AEST

This article was written by Charles Odontuyaa - Relationship Manager, Rivkin Securities Pty Ltd. Enquiries can be made via or by phoning +612 8302 3633.

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