Originally published by Rivkin Securities
Tuesday saw Wall Street slide yet again as the Dow, S&P 500 and the Nasdaq fell by 0.5, 0.6 and 0.4 respectively. However it is worth mentioning that the Dow Jones climbed back from a 549 point slump earlier in the day to finish the session 126 points lower. The midday rally was led predominantly by McDonald’s (NYSE:MCD) which rose more than 6% off the back of strong earnings results. Proctor & Gamble also continued to perform strongly amidst the October volatility.
Over in Europe the markets shed between 1.6% – 2.2% as the European Commission rejected Italy’s budget and requested for a new submission. Global oil prices fell substantially on Tuesday, approximately around 4% as Saudi Arabia released assurances it could supply more to the global market. US 10-year bond yields fell slightly by 4 points and now rests at 3.168%
What does this mean for the ASX today? Well despite the global markets closing mainly in the red yesterday, SPI futures are flat indicating a cautious open to the trading session. Locally, investors anticipate the release of monthly skilled vacancies data. Abroad we expect Japan’s manufacturing PMI data, US new home sales data and US FHFA house prices for August.