Originally published by Rivkin Securities
The Dow Jones traded lower for most of the overnight session although a rally in the back half saw it come back to unchanged. A fall in the last 20 minutes of trading put the index down 0.2% for the session, however. The Tesla (NASDAQ:TSLA) share price fell back by 2.4% as the accuracy of Musk’s Tweet about having financing ready for a leveraged buyout is called into question. Despite this fall, the Tesla share price is still close to a record high, currently at $370.34. ASX 200 futures are unchanged this morning.
Oil prices plunged overnight as investors fear a return to an oversupplied market as was the case before the OPEC cuts were implemented at the beginning of 2017. US inventory data released today showed that although crude inventories declined last week, gasoline inventories climbed unexpectedly. WTI is currently trading at US$66.76, down over $2 overnight.
The Reserve Bank of New Zealand left interest rates unchanged at 1.75%, as expected, this morning and indicated that the next change in the cash rate may not occur until 2020. This is because of a weaker outlook for economic growth in the short term partly caused by a slowdown in the housing market. The narrative sounds very similar to that for Australia with the RBA giving no indication that a rate increase will occur here anytime in the near future.
Data Releases:
- US PPI 10:30pm AEST