Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
SPI futures are pointing to a circa 15-point pop on the open, after US markets finished higher on Friday night.
Record highs on Wall Street and gains for oil, gold, aluminium and copper over the weekend have set the stage for a positive open for local shares.
The key news from Friday night is that the latest US consumer price report showed inflation is stuck in neutral.
Consumer prices were unchanged in the US in June from May, and 1.6% higher year-over-year – the smallest advance since October.
The year-on-year CPI has has been declining steadily since February, when it was 2.7%.
What’s on today:
No local data
On Tuesday, June new motor vehicle sales and the release of the RBA’s latest policy meeting minutes. On Wednesday, June WBC leading index and a speech by RBA’s Alex Heath. On Thursday, NAB business confidence second quarter and the June labour force report: employment change, unemployment rate and participation rate. On Friday, speeches from two RBA officials: Assistant governor Michele Bullock and deputy governor Guy Debelle.
Overseas data: China June retail sales, June fixed asset investment, June industrial production, 2nd Qtr GDP; UK Rightmove house prices July; US NY Empire manufacturing July
Bank of America, Goldman Sachs and Morgan Stanley all are due to report results this week as well as Netflix, Qualcomm and Microsoft, among others
SPI futures up 17 points (+0.3%) to 5707
AUD +1.3% to 78.32 US cents
On Wall St, Dow +0.4%, S&P 500 +0.5%, Nasdaq +0.6%
In New York, BHP +2%, Rio +1.4%
In Europe, Stoxx 50 -0.1%, FTSE -0.5%, CAC flat, DAX -0.1%
Spot gold +0.9% to $US1228.70 an ounce
Brent crude +1.3% to $US49.06 a barrel
Iron ore -% to $US65.74 a tonne
Dalian iron ore +1.9% to 489 yuan
LME aluminium +0.2% to $US1927 a tonne
LME copper +0.9% to $US5926 a tonne
10-year bond yield: US 2.33%, Canada 1.89%, Germany 0.59%, Australia 2.71%
What happened overnight: