IG MARKETS SPONSORED POST
Another night of strong gains for markets has the ASX set up for a positive start to its week. A noteworthy shift in sentiment has occurred in financial markets. The short-term trend has reversed, and the tide, it seems, has turned, for now. After what was a long weekend for Australian financial markets, there is substantial and meaningful news flow to catch-up on for Aussie traders and investors.
First of all, the US-Mexico stand-off over trade and illegal migration was ostensibly resolved, avoiding the risk of higher trade-barriers between those two economies. Second of all, US Non-Farm Payrolls data missed expectations on Friday night, with markets now discounting greatly a high chance of monetary support from the US Fed in the near future.
The sell-off in government debt speaks loudest of the shift in market-sentiment. The yield on the benchmark 10 Year US Treasury note, for one, leapt 6.4 points, on the general shift in the long-term global growth outlook. After the 3-day weekend for the ASX, SPI Futures are suggesting that the ASX200 ought to add around 26 basis points at today’s open. The data docket is looking relatively light for Australian markets today, with limited corporate and/or economic event risk. NAB Business Confidence data will be released, and will be watched for any sign of a post-election bounce in business sentiment in the Australian economy.