News & Analysis

Volatile trading on delayed Brexit vote; oil prices tumble

Dec 10, 2018 | Market Updates

Upcoming high impact news:

11:30 ABS House Price Index
11:30 NAB Business Confidence Index
20:30 UK unemployment and jobs data

Volatile trading on Wall Street overnight saw markets return to black, reversing steep losses early in the session. The Dow Jones rose 34 points or 0.14% while the S&P 500 climbed 4 points to finish 0.17% higher. The Nasdaq gained 51 points with Facebook, Amazon, Netfilx and Google all seeing strong gains.

Uncertainty over Britain’s exit from the European Union and a flattening yield curve contributed to the choppy session, with traders speculating on global growth. U.K. Prime Minister Theresa May delayed a parliamentary vote on Brexit overnight, amid fears the government would be defeated over trade and customs issues with Northern Ireland. As a result, the GBP/USD pair plunged to 1.256, while the EUR/USD fell to 1.1353. The London FTSE declined 56 points to 6,721.

After falling 129 points yesterday, Australian shares are set to open stronger with the SPI futures 20-points higher at 8:30am AEDT. Technology, health care and bank stocks lead the losses, with all sectors ending in the red. ANZ Bank, NAB and Westpac all closed at a 52-week low.

The Australian dollar also weakened against the greenback, after reaching a high of 0.72410 yesterday, the currency is currently trading at 0.71881, its lowest level in a month.

Oil prices also took a tumble, despite OPEC announcing to cut supply next year. U.S. Crude fell to US$50.960 per barrel, while Brent dropped to US$59.660.

Today, local investors will be looking towards the latest Business Confidence Index by NAB and the ABS’ House Price Index. Tonight, the U.K. will release its unemployment and jobs data.

Sources: CNBC & Bloomberg

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