Originally published by RIvkin Securities
US stocks failed to recover the losses from the previous day although all three major indexes did close positive for the day. The Dow Jones was up just 0.12% although earlier in the session it had been up as much as 0.52%, having given back much of the gain later in the session. Within the S&P 500 the energy sector outperformed as sanctions on Iran, together with a large inventory draw, sent WTI crude back above US$70 per barrel. The consumer discretionary sector also bounced after a weak few days.
Precious metals continue to be under pressure as the US dollar extends its rally. The US dollar index closed at 94.67, pushing the Australian dollar back below US$0.74. Gold prices made new six-month lows, currently at US$1,258 although the weak Australian dollar has kept the Australian dollar gold price above AU$1,700 per ounce.
Tonight, US durable goods orders data will be released. This is seen as a leading indicator of production as rising orders indicated increased future production. US GDP growth for the second quarter is predicted to be a very strong 4.7% according to the Atlanta Fed GDPnow model. If realised, this would be one of the strongest quarters in the last several years.
Data Releases:
- US Core Durable Goods Orders 10:30pm AEST