US Equities Gain As Oil Rallies, Apple Inc. Jumps As Warren Buffet Buys, ETF's Added Most Physical Gold Since Q1 2009, ASX SPI200 Futures Up 47 Points

US equity markets gained on Monday following a rally in oil prices that boosted broader commodities. The S&P500 finished 0.98% higher as energy shares led gains while the Nasdaq100 was also higher, up 1.25% as Apple Inc. gained 3.71% on disclosure that Warren Buffets Berkshire Hathaway Inc. had purchased up to $1.07 billion of the shares. All ten of the S&P500’s main industries were bid, with the largest gains coming from Basic Materials and Oil & Gas up 2.02% & 1.58% respectively while Telecommunications & Utilities lagged with modest gains of 0.44% & 0.14%.

Brent & WTI crude oil gained 2.59% & 3.27% respectively on continued disruptions including rebel attacks on oil fields in Nigeria & Libya, lost output as a result of a wildfires in Canada and data that showed Chinese plants increased refining by 2.4% from year earlier. While Back Hughes Inc. said on Friday that’s rigs targeting crude fell by another 10 last week to 318, the big market event coming up is the June 2nd meeting between the Organization of Petroleum Exporting Countries to review the market and discuss a potential output freeze – although with the continued rally in oil prices I find this scenario less likely. 

Spot gold prices gained 0.06% on Monday as the US Dollar posted modest gains, recent data has showed that exchange traded funds (ETF’s), such as SPDR Gold Shares (GLD), continued to buy physical bullion at the fastest pace since Q1 2009 while speculators such as hedge funds pushing the price higher in the paper markets. The chart below highlights the spot gold price, which may begin to move higher following a two week corrective period after reaching the highest levels since January 2015.   

Following a 7.5% decline over the past month the Australian Dollar gained 0.34% on Monday ahead of the release of the minutes from the May meeting of the Reserve Bank of Australia on Tuesday at 11:30am Sydney time. The ASX200 gained 29.96 points (+0.56%) while ASX SPI200 futures are up a further 47 points in overnight trading, suggesting a stronger open this morning.

Data releases:

·         RBA May Meet Minutes 11:30am AEST

·         RBNZ Two Year Inflation Expectations (Q2) 1:00pm AEST

·         GBP CPI (MoM & YoY Apr) 6:30pm AEST

·         US CPI (MoM & YoY Apr) 10:30pm AEST

·         US Housing Starts & Building Permits (MoM Apr) 10:30pm AEST

·         US Industrial Production (Apr) 11:15pm AEST


Source: Rivkin, Bloomberg, Updata

To view the Rivkin economic calendar and Global Markets matrix, members can click here.

This article was written by James Woods - Global Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

Complex product warning

This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice and dealing services on securities, derivatives and superannuation (SMSF). Rivkin also provide SMSF administration and accounting services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.