European Markets Decline As Global Equity Markets Remain Volatile
Wall Street was closed overnight for the funeral of George H. W. Bush. Consequently, we look to other markets for guidance. European markets reacted accordingly to Tuesday's significant sell off on Wall Street as the FTSE, German DAX and CAC40 indices all fell between 1.2 – 1.4%. Construction and material stocks weighed heavily on the markets as investors remained cautious amidst trade war fears and the potential reduction in global economic growth. The troubled progression of BREXIT also continues to keep investors weary.
Yesterday the ASX dropped 0.8% despite US markets sinking over 3% the night before. Australia's third quarter GDP was announced at 0.3%, slightly lower than the expected 0.6%. Volatility looks likely to persist with SPI Futures 13 points higher at 8:15am AEDT indicating a slight rally at the open.
Today Australia's international trade data is released and globally we anticipate a speech from the Federal Chairman Jerome Powell. Also, OPEC oil ministers meet in Vienna.
The AUD fell to 72.66 US cents, Brent Crude is trading at $61.56 USD per barrel and the US 10 year bond yield is sitting at 2.91%.
Australia – Retail Sales 10:30am AEST
Australia – Trade Balance 10:30am AEST
This article was written by Charles Odontuyaa – Relationship Manager, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.