ASX falls as investors trade cautiously before the busy week

The Australian Financial Review reported Monday that the G8 Education Council had retained the services of UBS Investment Bank and Allens Law Firm to oversee trade in the shares of the company and other market than private equity companies look at the sector. Shares of Bega Cheese have increased after local reports this weekend, according to which its bid was the first to buy the former Murray Goulburn powder mill in Koroit, ahead of its international rivals. It increased 3.6% to $ 7.57.

Watch Inventory

Domino's Pizza

Morgan Stanley raised the price target of Domino's Pizza to $ 65 from $ 55, and maintained its rating Overweight for the title, saying that once the run improved, the market would begin to focus on the business opportunities: Europe. The broker said that the long-term potential in Europe was not appreciated and that Domino had a significant competitive advantage in the southern regions of France, given its size and online activities. The broker anticipates that the number of stores in Europe will increase from 1,900 to 2,600 by the year 2025. The number of store discounts over the next few years accounted for most of the upgrade from the price point of Morgan Stanley. The broker added that he believes that the pressure on the Australian operations of the parliamentary franchise survey has been overplayed.

What Shifted the Market

US Oil Production

Oil Platforms Deployed in the United States Remain at Their Highest Level March 2015 as the Number of Oil Platforms Increased in Recent months due to rising oil prices in the United States. The number of oil rigs has plateaued in recent weeks, but remains at its highest level for several years, though the number of oil rigs is beginning to weigh on the high price of oil. West Texas Intermediate oil prices fell sharply following supply concerns after peaking at three years last week. The high level of oil production in the United States remains the main risk of oversupply in the oil market. Despite the number of oil platforms at 2015 levels, actual oil production is well above the levels observed when the number of platforms was at a similar level.

Aluminum

The price of aluminum has continued to fall since the beginning of the year, erasing almost all of the "Russian premium" after the imposition by the US United sanctions on the Russian oligarch Oleg Deripaska, including Rusal, the second largest aluminum company in the world. Aluminum followed the recent fall in base metal prices, due to increasing trade tensions between the United States and China, with Chinese exports expected to put further downward pressure on prices. Chinese exports of aluminum rose nearly 11 percent last year, bringing the country's total aluminum exports to a record high in the first half.

New Zealand Dollar

New Zealand should continue to trade defensively against the US dollar this week, continuing its recent downward trend. New Zealand's consensus forecasts for the second quarter of the consumer price index will be released on Tuesday and consensus forecasts suggest that if the CPI's overall inflation accelerates, the increase will not be enough to alter the outlook of the Reserve Bank of New Zealand. Elias Haddad, currency strategist, said Monday in a note that underlying inflation remained relatively subdued and that the key rate would remain unchanged until November 2019.

US bond yields

The US bond yield curve continues to flatten, with US 2-year bond yield now only 25 basis points from the 10-year bond yield, despite the fact that it began the last week with a spread of 30 basis points. The gap is currently at its lowest level in 11 years and is approaching reversal, a key historical indicator of a recession, although analysts remain divided over whether it will be the case this time. Some market analysts say, however, that the alarm could be overestimated, saying that the easing years of central banks have depressed interest rates and made debt markets much more serene than they are. they had not been there before. However, other analysts still warn that reversing the yield curve would further damage the financial system.