Good morning, Tumul Sinha – Equities Research Analyst – here with your First Look.
The Trump administration and Republican leadership call for lowering the corporate rate from 35% to 20% and collapsing the current seven personal tax brackets to just three, led to market optimism on the US markets with the SPI moving up overnight to 5661. The market remains choppy and range bound and we remain on the sidelines until we get some consistent movement in market direction.
What’s on today:
Local data: Job vacancies August; NZ Reserve Bank policy meeting
Overseas data: Euro zone consumer confidence September, German GfK consumer confidence October, German CPI September; US second quarter GDP annualised, Wholesale inventories August, Kansas City Fed manufacturing activity
Fed speakers: Esther George, Stanley Fischer
Key numbers:
SPI futures up 24 points or 0.4% to 5661
AUD -0.4% to 78.55 US cents (Overnight range: 78.36-78.89)
On Wall St: Dow +0.3%, S&P 500 +0.4%, Nasdaq +1.2%
In New York, BHP -0.2% Rio +0.7%
In Europe: Stoxx 50 +0.5%, FTSE +0.4%, CAC +0.3%, DAX +0.4%
Spot gold -0.7% to $US1285.58 an ounce
Brent crude -1.2% to $US57.75 a barrel
US oil +0.4% to $US52.06 a barrel
Iron ore down 80 US cents to $US64.15 a tonne
Dalian iron ore -0.4% to 466 yuan
Comex copper +0.4%
10-year bond yield: US 2.30%, Germany 0.46%, Australia 2.78%