IG MARKETS SPONSORED POST
The S&P500 made fresh record highs in Wall Street trade, briefly extending beyond the 3100 level before closing trade flat. Global bond yields dipped as traders become somewhat less optimistic about progress in trade-talks. The US Dollar climbed, adding to its recent recovery, though the Japanese yen was the big gainer in the currency space, and the Aussie Dollar fell further. Gold recovered a skerrick of its recent falls, while oil and copper prices dropped as excitement about a turnaround for the global economy moderated.
The intraday shift in market momentum was brought about by a speech delivered by US President Donald Trump at the Economic Club of New York. There was some hope leading into the event that he might provide an update on the state of US-China trade talks.
Despite some typically glib commentary, not much new information came out of Trump’s speech. The S&P 500 sold-off subsequent to the speech, unwinding a 0.5% intraday rally as traders continue to search for evidence of progress in trade-talks.
Local trade today will be highlighted by the release of quarterly wage growth data this morning. As is probably too acutely known by many, wage growth has been stubbornly low in Australia. The RBA has recently expressed its concern about the outlook for wage growth in the economy. A miss in today’s wages data will only add to these concerns and increase the odds of another rate cut from the RBA in the near future.