2. Key points of the trade agreement: The trade agreement addresses several ongoing problems that had defined the 18-month trade dispute: China has pledged to increase its purchase of US goods by a minimum of US $ 200 billion; China is committed to increasing its efforts to protect intellectual property; China has also pledged to take action against the forced transfer of technology in its economy and has promised to open its financial services industry to US companies. Both parties agreed to establish an implementation mechanism to manage competitive monetary devaluations.
3. United States earnings season: Merchants were also busy evaluating corporate results overnight on Wall Street. Large financial actions continued to be the focus. Goldman Sachs reported and lost estimates, largely due to the ongoing legal costs associated with the 1MBD scandal. Bank of America was also disappointed, after it reported a fall in net interest income. But Target was perhaps the biggest disappointment. The retailer cuts its sales outlook, citing weak consumer activity during the Christmas sales period, with the result that aroused some concern about the state of US consumption. UU.
4. ASX configured for positive opening: The positive end of Wall Street for your session is to configure the ASX200 for a solid start today. SPI futures imply that the index should open 16 points higher this morning. The movement will probably see the ASX200 exceed the 7000 mark, which the market was up to yesterday. The calls for a touch of exuberance in the stock markets are becoming stronger as national and foreign valuations become increasingly rich, which raises the concern of an impending correction.
5. British inflation data falls short: In macroeconomics, the UK CPI data captured most of the attention. Estimates were lost, reaching 1.3 percent versus a 1.5 percent forecast. The data adds to a series of disappointing data publications outside the UK recently, and adds even more fuel to the idea that the Bank of England should reduce interest rates soon. The market has now increased the chances of a rate cut at the end of the month of the Bank of England to 67 percent.
6. Price pressures to the US producer. UU. Moderate: US PPI data. UU. They also registered highly in the minds of merchants overnight. After the publication of the CPI on Tuesday, it was shown that inflation of US producers. UU. It did not meet market forecasts of 0.1 percent compared to an estimated 0.2 percent. The data was seen as further evidence that price pressures remain moderate in the US economy. US Treasury yields fell as a result of the news, while the US dollar traded lower against other G10 currencies.
7. Oil prices fall in the inventory data of the United States: Oil prices were a great engine overnight. Brent and WTI futures prices fell after the weekly US Crude Inventory data. UU. Weaken the bulls in the oil market and question the strength of global energy demand. Despite showing a greater overall reduction than expected in general, an accumulation of gasoline and distillates much greater than expected saw traders push the price of oil down by almost half percent. Oil prices are now trading at low levels not seen since early December.
8. Market wrapping
- Fixed AUD at 69 cents
- In Wall St about 3:30 p.m.: Dow + 0.3% S&P 500 + 0.2% Nasdaq 0.1%
- In New York: BHP -0.5% Rio -0.6% Atlassian + 0.6%
- In Europe: Stoxx 50 -0.2% FTSE + 0.3% CAC -0.1% DAX -0.2%
- Nikkei 225 futures + 0.1% Hang Seng futures + 0.1%
- Gold spot + 0.5% at $ US1554.41 / oz at 1.23pm New York
- Brent crude -0.6% at $ US64.08 per barrel
- U.S. oil UU. -0.6% to US $ 57.91 a barrel
- Iron ore -0.6% at $ US96.44 per ton
- Dalian iron ore + 0.2% to 668 yuan
- Aluminum LME -0.4% at $ US1801 per ton
- Copper LME -0.2% to $ US6287 per ton
- 2-year performance: USA UU. 1.56% Australia 0.80%
- 5-year performance: USA UU. 1.60% Australia 0.85%
- 10-year performance: USA UU. 1.78% Australia 1.21% Germany -0.20%
- 10-year performance gap between the US UU. And Australia at around 7.30 am AEDT: 57 basis points
This column was produced in a trade association between The Sydney Morning Herald, The Age and IG