Originally published by Rivkin Securities
US stocks rallied overnight which breaks a series of declines over the past few days and brings the index to a one-month high. European stocks also performed well with the DAX index up 1.1% and the FTSE 100 up 0.7%. The ASX 200 had a strong day yesterday but didn’t recover all of the losses from Monday. ASX 200 futures are up another 16 points this morning.
Oil prices rallied after preliminary inventory data showed a significant drawdown in stockpiles. Oil has been weak over the past two weeks as the market again begins to fear oversupply. Seasonally, gasoline demand is at a high point due to the northern hemisphere summer and as a result, refineries are operating at near full capacity to convert crude into gasoline. This typically causes drawdowns in crude inventories at this time of year. On the other hand, there are fears that OPEC + Russia are looking to increase production due to prices now being at a more ‘healthy’ level.
Today Australia’s CPI data for the second quarter will be released which is due to come in at 0.5%. This would be an annualised rate of approximately 2% which is the lower end of the Reserve Bank’s target inflation range.
Data Releases:
- Australia CPI data 11:30am AEST