Support for mining stocks offset by caution ahead of the reporting season and US jobs data
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
The share market looks set for a cautious start this morning. Ongoing support for mining stocks may be offset by general investor caution ahead of tonight’s US job data and the upcoming profit reporting season.
US dollar weakness was the catalyst for yesterday’s stock market rally and the impressive gains in commodities. Economic data last night did nothing to dispel concerns that US economic growth is moderating. This led to another weak session for the Greenback as markets wind back expectations for Fed rate increases.
US initial jobless claims rose last week. They are still below levels that are likely to cause real concern but the trend has been creeping higher in recent weeks. These signs of slight deterioration in the labour market are consistent with other indicators of softening US economic growth like the Markit Services PMI. Whether this shows up in weaker job growth either tonight or over the next couple of month will be crucial to the Fed’s next move and the US dollar.
With the exception of oil, ongoing US dollar weakness led to further overnight gains in major commodities, especially gold. The new downtrend in the US dollar changes the short term outlook for gold. It also appears to be benefitting from safe haven buying relating to the Chinese economy. Gold stocks are likely to be a bright spot for the stock market today.
While buying in mining stocks looks set to continue in early trade, the quick loss of momentum in the oil rally may weigh on market sentiment. Initial short covering in oil based on US dollar weakness has faltered in the face of ongoing supply surplus and continued build in already massive inventory levels. While many are beginning to look toward a more balanced oil market over the next year, the question for traders is whether a forward looking rally can build from here. Supply pressure is likely to be intense in overcoming months and considerable downside price risk remains. Whether or not price can get past near term resistance around $35 in the US oil price looms as a key test for market sentiment.
Call 1300 880 160
Start a chat
Schedule a call
