Good morning team, Chris Conway your Chief Market and Trading Strategist here with your First Look.
Local shares are poised to open flat, reflecting weaker overseas trading in the overnight session. The RBA is expected to make no change to interest rates at the 2:30pm meeting today.
SPI futures are down a handful of points, with US markets slightly weaker heading into the close.
An unimpressed reaction to Deutsche Bank’s plan to boost is capital pressured European shares overnight, and it didn’t help that base metals retreated too.
The spot price of iron ore slid 1.7%. The US-listed shares of both BHP and Rio were both more than 2% lower in afternoon trade in New York.
The S&P 500 Index slipped, with JPMorgan Chase & Co warning that hawkish Fed rhetoric has increased the likelihood for a short-term pullback.
What’s on today:
Local data: AiG performance of construction index, RBA cash rate target decision
Overseas data: China FX reserves February; Euro zone third quarter GDP; US trade balance
Capital Economics on the US trade report: “We expect to learn that the trade deficit widened to a two-year high of $US47.5bn in January. The advance goods trade report revealed that the goods trade deficit widened to $US69.2bn in January, as goods exports declined slightly, and imports rose by 2.3 per cent m/m. Accordingly, the overall trade deficit is likely to have increased by a similar amount.”
Trading Ex Div: BKL, DMP, EPW, MOC, MPL, NEC, OSH, QAN, QUB, RHC, RRL, SHL, SHV, VCX
- SPI down 4 points at 5724
- AUD at US75.79¢
- Dow Jones -0.2%; S&P500 -0.3%; Nasdaq -0.4%
- FTSE100 -0.3%, CAC -0.5%, DAX -0.6%
- Spot gold -0.6% at $US1226.56 an ounce
- Brent oil +0.1% at $US55.94 a barrel
- Iron ore -1.7% at $US89.73 a tonne
What happened overnight: