Australian Stocks Set to Slide on Global Growth Fears

Stock Markets

Australian shares are poised to open lower today as US stocks ended slightly lower on Monday, with the Dow Jones and S&P500 slipping 0.4% and 0.5% respectively. The apparent cause of the fall in the US indices is attributed to rising concerns raised by the OECD about global growth, disappointing Chinese trade data, and the pending UK parliamentary vote on Theresa May’s Brexit deal. ASX200 futures are currently down 0.5 points.

Hard Currencies

The spot price of gold rose about 0.17% and is now hovering around US$1291.75. From a technical perspective, the spot price of gold has been consolidating between US$1278.10 and US$1300.40. A breakout above US$1300.40 would signal the continuation of the uptrend in the spot price of gold.


Brent crude prices have benefited from hopes that the OPEC will manage to achieve production cuts and that trade tensions between the US and China will ease. After bouncing US$4.50 last week the price has retraced overnight and is currently down 1% to US$59.88 per barrel.

Fiat Currencies

AUD (against the USD) has extended its rally in the wake of the flash crash on 3 January which saw it drop to as low as 67.43¢ and is currently 71.97¢ (+0.02%), which is relatively low relative to historical levels. 

This article was written by Mithun Fernando - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via or by phoning +612 8302 3633. 

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