Business is booming.

ASX set for positive start on RBA day, $A rises

2


One Australian dollar was buying 67.98 US cents this morning, up from 67.46 US cents at the close of trade on Monday.

3. RBA day: No move is expect from the Reserve Bank with all eyes on its outlook. RBC Capital markets is expecting a more positive tone to come from the central bank

“Amid continued progress on the COVID-19 front and gentle easing in restrictions, our economists think the RBA may well adopt a slightly more positive tone compared to the banks’ general communication in recent months.”

4. Australian sharemarket: ASX looks set for a cautious start on Tuesday, with futures pointing to an advance of 9 points at the open.

On Monday, the ASX made a solid start to the week with a 1.1 per cent gain, with miners leading the way on the back of rising iron ore prices.

5. Trump and Putin talk: US President Donald Trump told President Vladimir Putin in a phone call about his idea of holding an expanded Group of Seven summit later this year with a possible invitation for Russia, the Kremlin said on Monday.

Moscow said the two leaders also discussed the OPEC+ deal on oil output cuts, and measures to fight the coronavirus. Putin thanked Trump for a delivery of US ventilators, the Kremlin said.

6. Europe rises: European shares rose on Monday, as signs of recovery for the continent’s manufacturers prompted investors to continue snapping up cyclical stocks.

The pan-European STOXX 600 index finished up 1.1 per cent, holding at highest level since March 9 even as trading activity was dulled by market holidays for Germany, Switzerland, Denmark and Norway.

Growth-sensitive sectors beaten up by the coronavirus crisis led the gains, with travel & leisure jumping 3 per cent, while banks, miners and oil and gas companies rose between 2 per cent and 2.6 per cent.

7. Oil steady: Oil futures steadied as rising US-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts.

Investors turned cautious after China warned of retaliation on US moves over Hong Kong.

8. Market watch:

ASX futures up 10 points or 0.2 per cent to 5838 near 6.25am AEST

  • AUD +1.9 per cent to 67.96 US cents (Overnight peak 68.03)
  • On Wall St: Dow +0.4 per cent S&P 500 +0.4 per cent Nasdaq +0.7 per cent
  • In New York: BHP +2.4 per cent Rio +1.8 per cent Atlassian +1.6 per cent
  • In Europe: Stoxx 50 +0.9 per cent FTSE +1.5 per cent CAC +1.4 per cent
  • German markets were closed
  • Spot gold +0.4 per cent to $US1737.00 an ounce at 2.43pm New York time
  • Brent crude +1.1 per cent to $US38.27 a barrel
  • US oil -0.3 per cent to $US35.40 a barrel
  • Iron ore -1.9 per cent to $US100.45 a tonne
  • Dalian iron ore -2.2 per cent to 740 yuan
  • 2-year yield: US 0.16 per cent Australia 0.25 per cent
  • 5-year yield: US 0.31 per cent Australia 0.38 per cent
  • 10-year yield: US 0.67 per cent Australia 0.89 per cent Germany -0.41 per cent
  • US prices about 2.45pm New York

This column was produced in commercial partnership between The Sydney Morning Herald, The Age and IG

Information is of a general nature only.

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