Originally published by Rivkin Securities
The Dow Jones Industrial Average fell 0.3% overnight although the intraday decline was as much as 1.3%. The announcement that Canada and Mexico may be exempted from the President’s tariff plan seems to have reassured the stock market to a degree. The S&P 500 also recovered its intraday losses to close virtually flat. The S&P/ASX 200 had a weak session yesterday, falling by 1%, although futures are up 22 points this morning.
WTI oil prices continue to bounce around in the low 60’s as inventory data this week showed another crude build. This time of year typically sees build in crude oil as the cold northern hemisphere weather reduces the amount of driving. Crude is also under pressure from rising US production which hit a new high last week, now firmly above Saudi Arabia’s production level.
The announcement that President Trump’s economic adviser, Gary Cohn, was resigning caused a spike in the gold price yesterday but last night the concern from this event faded and the gold price gave back its gains to finish around $1,325 per ounce. There were supposedly several reasons for the resignation although a disagreement between Cohn and Trump regarding trade tariffs was reported to be the straw that broke the camel’s back.
Australia’s trade balance data for the month of January will be released today. Expectations are for a small $0.21bn surplus which would represent a turnaround from the deficit in December.
Data Releases:
- Australia Trade Balance 11:30am AEDT
- Euro Interest Rate Decision 11:45am AEDT