US Stock Markets Close Flat
Both the Dow Jones and S&P 500 closed almost flat on Friday in what was a relatively uneventful session despite the war of words continuing between North Korea and US president Trump. The US also flew fighter jets near the North Korea border as a show of force. Markets, however, seem to have become desensitised to this news as there was little reaction by investors. Precious metals and commodity prices were generally quiet with gold holding just below $1,300 per ounce and oil trading just above $50 per barrel. Iron ore is trading around $71 per tonne, off the recent peak around $77 per tonne.
Canadian CPI came in lower than expectations which is interesting since the Bank of Canada lifted rates at its last meeting. A lack of inflationary pressure will reduce the need for the bank to rush with further rate hikes.
There are several US economic data points coming out this week including the final revision of the second quarter GDP which currently sits at 3.0% but is expected to be revised upwards to 3.1%. US durable goods orders data will be released on Wednesday night AEST. This data is generally a leading indicator for production as manufacturers purchase machinery (durable goods) in order to fill customer orders.
– No Significant Data
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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.