6 Things Australian Traders Will Talk About This Morning

Hello

On the board:

• Dow: 24,356.74 +181.92 (+ 0.75%)
• S & P500: 2,736.61 +23 , 39 (+ 0.86%)
• AUD / USD: 0.7386 +0.0006 (+ 0.05%)
• ASX Futures SPI (September Contracts): 6195 ( +28)

1. This is the: Customs duties on Chinese imports to the United States are expected to come into effect today. The Chinese authorities warned in June that Beijing would face its own levies soon after the entry into force of US tariffs.

2. But US equities ignored fears of trade war as markets returned from vacation, while European equities were also boosted by reports that President Trump could withdraw its tariff threat against European manufacturers. The ASX should follow this strong lead, despite further declines in the Chinese markets yesterday.

3. The minutes of the June US Federal Reserve meeting revealed some concerns about the negative spillover effects of a trade war, but Fed officials remain generally positive about prospects of the US economy. In an overnight speech, the governor of the Bank of England, Mark Carney, also raised fears of a trade war, but said the BoE should soon review its rates.

4. A bullish Carney and strong data from Europe in the form of orders from German factories both supported solid gains for the euro and weighed against the greenback overnight. The Australian dollar briefly retreated more than 74 US cents before falling back to end the session with little change.

5. In raw materials, oil dropped by more than 1% in a hectic session after an increase in US crude stock. Gold is stable but copper prices have again fallen and dropped by 14% over the last month. In addition, iron ore prices fell sharply before the deadline set by the United States and China.

6. Along with implementing tariffs, global markets will also be guided by key data on US employment tonight. An additional 190,000 jobs are projected to be created, with average hourly earnings rising to 2.8% in annual terms.

Here are the other highlights of the current economic calendar:

• PMI of the Ai group in Australia.
• Figures of German industrial production.
• Canada presents data on employment and trade.
• US trade data.

Good weekend.

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