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Good Morning and welcome to HotCopper’s ASX Market Open, I’m Jon Davidson, and the ASX looks set for flattish gains with futures up only +0.15% a/a 8.30am AEST.
It’s been a shocker few weeks with the XJO dipping towards 8,600pts and an RBA rate hike widely expected down under.
Over the weekend period for Aussies, the US 10Y bond yield climbed above 5.1% and Brent Crude has hit just above US$105/bbl.
Local unemployment data still paints the picture of a hot labour market and in that light, after the EU and US have both risen rates, it looks like a sure bet we’re going to do the same.
That suggests more pain to come: the ASX200 is down over -4.00% over the last month and it’s unclear when relief might waltz through the door. Given that the Houthis are now bombing the Saudis, a fresh evolution in the current Middle Eastern war, we’re currently looking at two crucial oil pathways cut off and a whole lot of uncertainty.
The RBA makes its next call tomorrow; in that backdrop we’ve also got Australian August CPI due this week alongside building approvals and housing prices – one of the biggest factors contributing to the inflation basket, though, the ALP’s budgetary measures have done something to mitigate that pressure.
Perhaps the fact that as at 8.35am AEST Monday not many ASX price-sensitive announcements have come through the channels points toward the week that will be, which is to say it could be a yawnfest.
That said, the US markets finished green on Friday, but the sentiment gauge currently states Wall Street is in a state of fear. Make of that what you will.
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