To the scoreboard:
- Dow: 24,271.41 +55.36 (+0.23%)
- S&P500: 2,718.37 +2.06 (+0.08%)
- AUD/USD: 0.7405 (+0.70) (+0.68%)
- ASX SPI futures (September contracts): 6,171 (+23)
1. ASX futures are pointing higher after global stocks were steady to end the week. US stocks started strong but finished flat, with gains underpinned by financials as banks passed the Fed’s latest stress tests while energy stocks got a boost from higher oil prices.
2. More concerns about supply saw brent crude push back towards $US80 a barrel on Friday night. US President Trump tweeted over the weekend that Saudi Arabia has agreed to boost output to lower prices, but Reuters reported that some market analysts are unconvinced about Saudi’s spare production capacity.
3. It was a strong session for the euro on Friday night, as markets appeared to respond positively to news of an EU agreement on migration. The pound also rose strongly after Q1 GDP got revised upwards, and broader weakness in the greenback saw the AUD push back above US74 cents to end the week.
4. The week ahead: It’s a busier schedule of key data in Australia, while globally there’s a raft of manufacturing PMIs to kick off a new month, starting with China today. And China will be in focus this week after Chinese stocks just posted their worst monthly result since January 2016 amid the government’s deleveraging campaign and the ongoing threat of a trade war. The full calendar is here.
5. PCE inflation data in the US on Friday night showed that annual core inflation growth rose to 2%, putting it within the US Fed’s 2-3% target range for the first time in six years. Bond markets were little-changed with benchmark US 10-year bond yields edging slightly higher to 2.86%.
6. Bitcoin is holding steady at around $US6,350 this morning, as prices rallied again over the weekend following another dip below the key $US6,000 mark. Elsewhere, Chinese demand for higher grade ore helped support iron ore prices on Friday night, while a weaker US dollar saw gold climb off its six-month low beneath $US1,250 an ounce.
Have a great week.