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 charles.odontuyaa@rivkin.com.au or by phoning +612 8302 3633.

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.