Originally published by Rivkin Securities
US stocks rallied overnight with both the S&P 500 and Nasdaq 100 reaching new record highs with 0.77% and 0.98% gains respectively. European stocks also rose, including the DAX which climbed 1.2%, although the UK was closed for a public holiday. US President Trump announced a new trade deal reached between the US and Mexico which is good news although it seems that Canada has been left out in the cold in this regard. Tesla's (NASDAQ:TSLA) share price has fallen back to close to unchanged for the year as CEO Elon Musk has now admitted that the company would remain a public company.
It is a quiet day for economic data released today although later in the week we get the US prelim GDP estimate for the second quarter which is the first revision following the initial ‘advance’ estimate. The consensus is for a downward revision from 4.1% to 4.0% although even with this revision it would be one of the strongest quarters for GDP growth in recent years. The current Atlanta Fed estimate for the third quarter is an even more impressive 4.6% although this figure can change substantially between now and the official release of the number.
The ASX 200 bounced yesterday after the prior weeks poor showing from the banks. The political uncertainty caused selling in the big four banks which put pressure on the index although a relief rally yesterday signalled that the worst of this may be over now that the government is getting back to its normal business. ASX 200 futures are up 28 points this morning.
Data Releases:
- No Significant Data