ASX is posing to open lower on Monday’s trading session with SPI currently down 37 points at 5874. This is on the back of negative closing on both US and European Markets on Friday.
Dow Jones closed down 0.8%, S & P down 0.9% & Nasdaq down 1.7%. In Europe, FTSE down 0.5%, CAC down 0.5% while DAX closed down flat. The selloff was broad with 8 of 11 major S & P sectors ended lower on the day. The Dow was dragged down by Goldman Sachs, Caterpillar and Cisco shares. Goldman drop 3.9% triggered by reports that the firm’s links to Malaysia’s investment fund. According to Malaysia’s PM in waiting Anwear Ibrahim said the 1MDB investment funds was “inexcusable” as the government will seek the repayment of millions of dollars of fees the investment collected. Tech shares were knocked lower amid renewed concerns about the earnings outlook for the sector as well as White House trade adviser comments on a potential near-term resolution of the US/China trade war. In addition, the NYSE FANG shed 1.8% on Friday with , Netflix slid 4.6%, Amazon slid 2.4%, Facebook dropped 2% and Apple closed down 1.9%.
Gold also closed down 1.2% at US1209.65 while Iron Ore surged closing 1.2% higher at US77.20 a tonne, which help stable the AUDUSD trading at US 0.7218 cents. There are couple of major news releases that both local and global investors will be looking – In Australia, we have the wage price index number due out Wednesday and on Thursday, employment numbers are out with the market expecting 20,000 jobs created in October and the unemployment rate to remain at 5.1%. In the global market, On Wednesday, CPI numbers will be released on Wednesday with the market expecting a small increase to 0.3%. On Friday, Retail sales numbers are due with marketing expecting an increase from 0.1% to 0.5%.
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DATA RELEASES THIS WEEK:
GBP – Average Earnings Index 3m/y
AUD – Wage Price Index q/q
GBP – CPI y/y
USD – CPI m/m, Core CPI m/m & Fed Chair Powell Speaks
AUD – Employment Change & Unemployment Rate
GBP – Retail Sales m/m
USD – Core Retail Sales m/m & Retail Sales m/m
EUR – ECB President Draghi Speaks