SPI is currently up 16 points at 6176 pointing to positive trading start on Tuesday on hopes that the global trade outlook is improving after the US secured a new trade deal with Canada and Mexico.
However the market is expecting some pressure in the banking & financial sectors after Commission Hayne’s Royal Commission reporting last week. ASIC will launch the first legal action based on the report within weeks over the fees-for-no-service scandal as the regulator looks to make an example of the financial services giant. The report also hammered Australia’s biggest banks such as CBA for failing to maintain adequate systems, and NAB for the widespread practice of false witnessing.
Overseas, there was some mixed closing with Dow Jones closed up 0.8%, S & P up 0.5% & Nasdaq unchanged. In Europe, FSTE closed down 0.2%, CAC up by 0.2% and DAX closed up 0.8%.
AUDUSD is trading US $0.72255 cents after it traded above US $0.73 cents earlier in the morning. Gold traded lower at US $1190.09 with Iron Ore has little change trading at US $69.24 a tonne. Investors will be looking for RBA to announce the Cash rate today with market expecting no changes at 1.5% however it is the statement from RBA and his outlook is what the market in expecting to hear. On Friday, its US Non-Farm payroll numbers with the market expecting 185,000 jobs creation in Sept with unemployment rate to drop at 3.8%.
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MAJOR DATA RELEASES:
AUD – RBA Rate Statement & Cash Rate
USD – Fed Chair Powell Speaks,
GBP – Services PMI
AUD – Trade Balance (AUG)
USD – Initial Jobless Claims (Sep), Durable Goods Orders (Aug)
AUD – Retail Sales (Aug)
CAD – Unemployment Rate (Sep)
USD – Trade balance (Aug), Non-farm Payrolls (Sep), Unemployment Rate (Sep)
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