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Will we beat the Yanks in the swimming?

Good Morning,

 

The US continues to “march on” higher (Dow +66 points) and us Aussies are finding hard to follow through…

 

Let’s hope that we beat those yanks in the pool @ RIO…

 

We certainly need something to “brag” about…….

Global stocks are trading near their highest levels of 2016, having rallied since February as commodities recovered from a quarter-century low to enter into a bull market this week.

Government bonds, corporate credit, gold and emerging markets are also rallying, indicating that investors aren’t deterred by a deteriorating U.S. labor market or a cut by the World Bank on its forecast for growth this year.

Federal Reserve officials meet next Tuesday and Wednesday, and the central bank is expected to leave interest rates unchanged.

There were some strong moves in commodities overnight, so this will be the focus today….

·         In London, BHP +2.4%, Rio +1.3%, Sky -1.3%

·         Spot gold +1.4% to $US1260.55 ounce at 2.05pm New York time

·         Brent crude +2% to $US52.45 barrel at 2.17pm New York time

·         On the LME, aluminium +2.6%, copper +0.2%, nickel +4.4%, zinc +3%

So… What's on today?

Overseas data: China CPI, PPI (May), Japan machine orders (April), Germany exports and imports (April), France non-farm payrolls (1Q), UK RICS house price balance (May), UK trade balance (April), Mexico inflation (May), South Africa manufacturing production (April), South Africa mining production (April), US jobless claims (weekly), US wholesale inventories (April), US household change in net worth (1Q).

Overseas earnings: Hudson's Bay Co, BRP, JM Smucker Co, Auto Trader Group, Remy Cointreau.

The SPI is up 11 points this morning.

 

Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.

 

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