Originally published by Rivkin Securities
The Australian market saw a solid gain of 0.9% last week, with resource shares leading the way. The strong performance followed global leads, with US shares up 1.6%, Japanese shares jumping 2.4% while Chinese shares edged up 0.2%. But Eurozone shares fell 0.2% as Italian shares remained under pressure.
Commodity prices also rose and this, along with the stronger first quarter GDP growth of 3.1% (annual), saw the Australian dollar rise slightly.
This week is all about global developments and we could be in for some volatility along the way. The Australian market remained closed for the Queen’s birthday while the disastrous G7 meeting took place in Canada. An unprecedented feud between Canadian PM Justin Trudeau and US President Donald Trump left relations very strained as the meeting ended and keeps fears of trade wars alive for now.
And today marks the potentially momentous meeting between Donald Trump and North Korean leader Kim Jong-Un in Singapore. Optimism has died down from initial expectations, but any positive outcome could be good news for markets even if gold and oil may take a short-term hit.
Data Releases:
- UK Unemployment Rate 6:30pm AEST
- US CPI 10:30pm AEST