Originally published by Rivkin Securities
Most developed market stock indices climbed overnight including the Dow Jones which gained 0.35% and the S&P 500, which was up 0.25%. The market is cautiously optimistic about an easing of the trade wars that have been providing a consistent source of bad news for the economy. The S&P 500 is back near record highs after gradually trending higher since late March. The ASX 200 is continuing to make new ten-year highs and is now 6.6% off a new record high, the previous record having been set in October 2007. ASX 200 futures are down three points this morning.
The Tesla (NASDAQ:TSLA) share price has plunged over the last two weeks as the market realises Musk’s plans to take the company private were not as fully formed as he led people to believe. Overnight the share price managed to hold above $300 but the trend is clearly down.
Today the RBA releases the minutes from the most recently monetary policy meeting although the sentiment isn’t likely to have changed drastically from the prior meeting. Expectations for the first rate hike for the cycle continue to get pushed further out into the future. The US, on the other hand, is still expecting another 25-basis point hike at the FOMC meeting on 26 September which would bring its official interest rate to between 2-2.25% although president Trump has been making comments suggesting the Federal Reserve should hold off on the rate increases.
Data Releases:
- RBA Monetary Policy Meeting Minutes 11:30am AEST