To the scoreboard:
- Dow: 25,092.0 -118.0 (-0.47%)
- S&P 500: 2,779.42 -3.07 (-0.11%)
- AUD/USD: 0.7443 +0.0002 (+0.03%)
- ASX200 SPI futures (June contracts): 6,100 (unchanged)
1. The ASX200 will follow a weaker lead from global markets when it opens this morning, after US stocks dipped slightly to end the week. The cautious tone was attributed to another escalation in the ongoing trade dispute between the US and China.
2. And there was a big move in oil as prices for brent crude which slumped by almost 4% to $US73.08 a barrel. That followed reports of a joint-plan between Russia and Saudi Arabia to boost production, which was subsequently rejected over the weekend by another trio of OPEC member states — Iran, Venezuala and Iraq.
3. In currencies, a little bit of heat came out of the USD amid the lingering trade tensions while the commodity bloc currencies came under pressure following the fall in oil prices. The AUD slumped again following Thursday’s sharp fall, with US74 cents now highlighted as the key level of support.
4. Bond markets’ reaction to the US-China trade war was minimal, as benchmark US 10-year bond yields dipped slightly to around 2.92%. A smaller fall in shorter-term 2-year debt left the 2-10 yield spread at less than 40 basis points — its lowest level in a decade.
5. And in cryptos, bitcoin held above the $US6,000 last week and remains in its weekend trading range at around $US6,500 this morning. On a technical trading basis, $US5,950-$US6,000 remains the key support level preventing a break towards $US3,000.
6. The week ahead: It’s a quieter schedule of headline data this week, both locally and abroad. Domestically, Tuesday’s RBA minutes from the central bank’s June rates meeting will get the most attention.
Have a great week.
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