Today’s Announcements & News
AU Philip Lowe, RBA governor, will appear before the House of Representatives Standing Committee on Economics, Canberra at 9.30am AEDT
UK January retail sales
US import price index January, Leading index January
Australian shares are expected to open on a lower note due to the final hour sell-off on Wall Street. Traders were seen repositioning their portfolios in response to January’s producer price report and recent Fed comments, which suggested a possible increase in US interest rates.
China has announced fines and sanctions against two US defense companies, marking a new escalation of tensions between the world’s largest economies. The Ministry of Commerce in China stated that Lockheed Martin and a subsidiary of Raytheon Technologies have been added to a list of ‘unreliable entities’ for selling weapons to Taiwan.
Gold futures remained steady above the near-term support level of 1,829, despite the strengthening of the USD, as the risk-off sentiment potentially bolstered the strength of haven assets. However, recent increases in US dollar bond yields may put further downward pressure on gold prices.
Meanwhile, crude oil prices experienced a decline as a result of risk-off trades, following the sell-off on Wall Street due to the PPI data and a stronger USD. With US crude inventory reaching a 17-month high, the suggestion is that demand is weakening.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.