News & Analysis

Stock sell-off; oil prices rise on production cut

Dec 9, 2018 | Market Updates

Upcoming high impact news:

08:35 RBA Asst Gov Kent speaks
11:30 ABS home loans/lending data
20:30 UK GDP data m/m
20:30 UK manufacturing production m/m

After clawing back losses to finish in the black on Friday, Australian shares are poised to fall at the open. The SPI Futures was down 30 points at 8am AEDT. The Australian dollar is now below 72 US cents.

Last week global equities tumbled, sparking fears of a bear market. On Wall Street, the Dow Jones closed 558 points lower on Friday or down 2.24%. For the week, the index plunged 1,150 points or 4.5%. The S&P 500 fell 2.33% on Friday’s session while the Nasdaq dropped 3.05%.

It follows a week of uncertainty over trade negotiations between the United States and China, concerns of an economic downturn amid falling bond yields and the arrest of a high-profile Chinese executive.

In London, the FTSE fought back losses after OPEC and its allies agreed to cut oil production to boost the market. Major oil producers will cut oil production by 1.2 million barrels per day, for the first six months of 2019. As a result, US Crude rose to US$52.24 per barrel. Brent oil climbed from $US60.33 to US$61.36 per barrel. The London FTSE rallied 74 points to close 1.10% higher.

This morning, Australian investors will be listening to a speech by Reserve Bank Assistant Governor Christopher Kent at a Bloomberg event in Sydney. The board member is expected to answer questions from the audience. The ABS will also release its latest round of home loan data. New lending is expected to contract 0.5%. Later tonight, the United Kingdom will release its latest GDP and manufacturing data.

Sources: CNBC & Bloomberg

Good Trading from Eightcap

All times are AEDT

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.

 

 

 

 

 

HEAD OFFICE

Level 6, 360 Collins Street
Melbourne, VIC
3000 Australia

Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.

EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.

The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.