Wall St hits record highs, RBA governor in focus


Stock markets across the globe have returned to their winning ways, seemingly as a result of diminishing fears about the coronavirus outbreak. Indices in the US and Europe clocked up fresh record highs. The S&P 500 rallied by 0.3 per cent, underpinned primarily by another push-higher in US tech companies, but also supported by broad based gains in defensive sectors. In European trade, the pan-European Stoxx 600 index climbed to its own record levels.

As for the laggards, materials and energy stocks remain under pressure as commodity prices fail to stage a full recovery in the face of concerns about Chinese economic growth. While financial stocks dropped as bets of global interest rate cuts lowered bond yields.

In the day ahead, traders will be keeping an eye on high impact data released globally and locally. The RBA releases its quarterly monetary policy statement, with market participants expecting the document to deliver the sort of upbeat tone about the Australian economy that’s characterised all of the RBA’s communications this week.

US Non-Farm Payrolls figures are also out in US trade. It’s expected to show the economy added 155,000 jobs last month, keeping its unemployment rate at 3.5 per cent.


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