News & Analysis
Stock sell-off; oil prices rise on production cut
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
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