Originally published by Rivkin Securities
US stock markets had a positive session overnight although a sharp decline late in the day took off some of the earlier gains. The Dow Jones Industrial Average closed up 0.4% while the S&P 500 was up 0.35%. The S&P/ASX 200 continued its run yesterday with the index climbing 0.35%, which brings it very close to a four-month high.
Crude oil (WTI) surged through $70 per barrel for the first time in over three years as fears of the reimposition of sanctions on Iran spook traders. US President Trump is set to decide in the very near future whether the US will reimpose sanctions on Iran for not complying with a nuclear deal reached in 2015. Crude has also seen support from the continually declining production from Venezuela as the state-owned oil company, PDVSA, falls apart although this is offset to a degree by surging production from US shale.
Gold prices are holding steady as a stronger US dollar weighs on the precious metal. The US Dollar Index has reached a four-month high driving the Australian dollar down to US$0.751. Commodity prices continue to rise with the CRB commodity index now at a two-year high of 203.6.
Australian retail sales data for the month of March are due today. Following February’s strong 0.6% increase, expectations are for an 0.2% increase in March. If this comes in as expected, it would represent a moderately strong first quarter for retail sales.
Data Releases:
- Australia Retail Sales 11:30am AEST