ASX poised to open lower on rising fears of a disorderly Brexit
Australian shares are poised to open lower today following British PM Theresa May suffering another resounding defeat over her orderly Brexit deal. The defeat raised concerns about the country’s economic and political uncertainty and has significantly increased the risk of a disorderly Brexit.
The S&P 500 and NASDAQ 100 closed higher on Tuesday, gaining 8.22 (+0.30%) and 32.97 (+0.44%) points respectively. Conversely the Dow Jones closed down 96.22 (-0.38%) points, dragged lower by further losses in Boeing Co which extended Monday’s losses by falling 5.9% on Tuesday.
The benchmark S&P/ASX200 index closed marginally down 5.4 (-0.09%) points on Tuesday, with the consumer discretionary sector (-0.68%) leading losses following the release of an ANZ survey which indicated a steep drop in consumer confidence last week amid talks of Australia entering a ‘per-capita’ recession. Energy stocks rebounded with the sector up 0.65% on rising oil prices resulting from Saudi Arabia production cuts.
ASX 200 futures are currently down 9.0 points.
Today’s data releases: WBC-MI consumer confidence March, Japan machinery orders January, Euro zone industrial production January, US PPI February, Durable goods orders January, Construction spending January
Commodities and Currencies
Brent and WTI crude extended Mondays gains and are currently sitting at US$66.67 (+0.14%) and US$57.15 (+0.49%) respectively.
Iron ore prices are up 1.7% to US$85.25 per tonne.
The spot price of gold is currently marginally down 0.06% at US$1300.86.
The AUD is currently flat at US70.78¢. Brexit induced volatility in the local currency is expected to return as investors closely watch for further developments in London.
This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via firstname.lastname@example.org or by phoning +612 8302 3633.