Originally published by Rivkin Securities
The Dow Jones climbed overnight, closing 0.57% higher. Apple (NASDAQ:AAPL) rallied 2.4% as analysts digest the impact of the new iPhone launch. Technology stocks in general outperformed as the Nasdaq 100 opened higher and held the gains for the rest of the session, eventually closing up 0.98%. While US President Trump is planning a new round of trade talks with China, he has been simultaneously damping expectations that a deal will be reached stating that he feels “no pressure to make a deal”.
US CPI data was released overnight, coming in lower than expected with the core CPI climbing just 0.1% for the month of August. Gold prices initially reacted to this by spiking higher and bond yields plunged however these moves were erased by the end of the day. With the next FOMC meeting coming up in 12 days, the probability of a rate hike is a near certainty with markets pricing a 97% chance of a rate hike at this meeting. Having said this, the probability of an additional December rate hike dropped slightly following the CPI release although it is still at 77%. Tonight, US retail sales data will be released for the month of August. Core retail sales are expected to have climbed by 0.5% for the month. Also today, China will report retail sales and industrial production data.
ASX 200 futures are up 27 points this morning after a weak day yesterday, having closed down over 0.75%.
Data Releases:
- China Retail Sales 12:00pm AEST
- China Industrial Production 12:00pm AEST
- US Retail Sales 10:30pm AEST