As we come to terms with yesterday’s review of the Reserve Bank of Australia, the Australian share market is set to open lower — steered by a negative close on Wall Street.
The US session slumped on more mixed earnings reports from big caps and further signs the economy may be slowing.
Tesla shares fell for a second straight day on concerns about how much profit it’s making on each of its electric vehicles.
Shares dipped 7.5 per cent after the EV giant reported its lowest quarterly gross margin in two years, falling short of analysts’ expectations and saying it would continue to cut prices.
US telco AT&T and American Expresses also sustained losses after both posted lower-than-expected profit results for the first quarter.
However, the majority of US companies have been exceeding profit forecasts — mainly because expectations were quite low going into the reporting season.
Asian markets were mixed. Data revealed Japan’s trade deficit narrowed last month as exports rose more than anticipated. But exports to China fell — a sign of a slower pandemic recovery.
The Aussie dollar is up, buying 67 US cents and 54 British pence.
The price of oil is struggling on poor US outlooks and concerns China’s households and businesses may not be as strong as some think.
Analysts suggest today is mostly a risk-aversion session, which doesn’t bode well for oil.
Meanwhile, gold is past US$2000 an ounce on the return of safe haven flows once again.