Iron Ore Climbs to Ten Week High
US stock markets had a volatile session as news that a former national security adviser was ready to testify against a senior member of Trump’s government in relation to the Russia probe. This caused the Dow Jones and S&P 500 to drop over 1% although both recovered to close down 0.17% and 0.2% respectively. At the same time as the stock market fell, gold got a boost, climbing around US$14 in a short space of time before fading to close up just US$5.
Iron ore had a strong session, climbing around $2 per tonne. This brings the price to $70.11, back above $70 for the first time since mid-September and continues the uptrend that began at the beginning of November. Similarly, oil climbed as the market adjusts supply/demand expectations based on the OPEC production cut extension agreed to last week.
It is a big week for Australian data starting tomorrow when the Reserve Bank of Australia makes its interest rate decision for December. No change is expected and analysts now don’t expect any change in rates until at least later next year in contrast with the US where an interest rate hike is priced in as a near certainty for December. Also this week, Australia’s trade balance, GDP and retail sales data will be released.
ASX 200 futures are up six points this morning.
– US Factory Orders 2:00am AEDT
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This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.