Originally published by Rivkin Securities
US stocks opened substantially down overnight but rallied throughout the session to pare the losses. The Dow Jones closed down 0.4% while the S&P 500 was down just 0.2%. The energy sector was the clear outperformer, gaining 1% as oil price volatility remains high while consumer staples was easily the worst performing sector, losing 1.4%. Oil prices have fallen over the past few weeks as OPEC is due to meet and discuss the future of the production cuts. Russia is advocating to eliminate the 1.8 mbbl/d cut that was made as part of the agreement in January 2017. Compliance with the cuts has been aided by involuntary declines in production from Venezuela as its oil infrastructure crumbles due to mismanagement.
The Australian dollar continues to trade near one-year lows at US$0.742 as rising US rates put pressure on the currency. This has kept gold prices above AU$1,700 per ounce even as the US dollar price falls. Gold is currently trading at US$1,279 per ounce.
Today the minutes of the most recent monetary policy meeting of the Reserve Bank of Australia will be released. Although there was no rate increase at that meeting, the minutes provide insight into the thinking of the RBA board and sometimes give clues as to the timing of the next rate change. ASX 200 futures are up 35 points this morning.
Data Releases:
- RBA Monetary Policy Meeting Minutes 11:30am AEST