CBA Shares Bounce
After a shaky start to the session the Dow Jones closed higher again for another record close. The interesting thing about the rally is that it has consisted of very few daily changes greater than 1%. In other words, it has been a slow march upwards, just inching along day by day.
The rally in crude oil has stalled with WTI holding just above $49 per barrel. Inventory data of the past several weeks has shown a large decline in US inventories bringing inventory levels back to early 2016 levels. Significant further declines will be necessary to get back to the five-year average but signs indicate that the rebalancing of supply and demand may be occurring.
Speculation about the Commonwealth Bank (CBA) scandal continues to swirl in the media but it is clearer than ever that no one really knows what the potential fines could be. After falling over 3% on Monday, the shares bounced back by 1% yesterday after an announcement by CBA detailing some of its side of the story. The fact that the breach appears to relate to a system error rather than deliberate human action should mitigate some of the reputation damage and perhaps reduce the possible fine.
ASX 200 futures are pointing to a slightly higher open this morning.
– Chinese Trade Balance 12:00pm (tentative)
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This article was written by William O'Loughlin – Local Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via firstname.lastname@example.org or by phoning +612 8302 3633.