WSJ article increases US/China trade optimism
Australian shares are set to open higher today as shares on Wall Street closed higher. This is primarily due to the release of a Wall Street Journal article claiming that the US is considering easing tariffs on Chinese imports in an attempt to spur trade negotiations. Strong US data releases also significantly contributed to US equities trading in positive territory. The Dow Jones and S&P 500 both closed in the green, with the indices gaining 162.94 (+0.67%) and 25.13 (+0.96%) points respectively. ASX 200 futures are currently up 30.5 points.
The spot price of gold fell about 0.17% and is now hovering around US$1291.60. From a technical perspective, the spot price of gold has been consolidating between US$1278.10 and US$1300.40. A breakout above US$1300.40 would signal the continuation of the uptrend in the spot price of gold. The trading range also appears to be tightening, which indicates that a significant move in the spot price of gold is likely to occur soon.
Brent crude prices have benefited from hopes that OPEC will manage to achieve production cuts and that trade tensions between the US and China will ease and are currently up 0.05% at US$61.25 per barrel.
The AUD (against the USD) has advanced 0.05% to 71.94¢.
This article was written by Mithun Fernando – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.