The XJO is expected to open higher this morning, with an expected open near 8,000. The U.S was only marginally higher overnight and their futures are practically flat. Yesterday, our market gave up all our intraday gains to finish flat, despite a strong night in the U.S on Friday. With the U.S flat overnight, our market will have another go pricing in the U.S’s Friday gains this morning.
Regardless, don’t be surprised to see our market give up in the afternoon session, as it is starting to become clear that markets are running out of steam. The next broader move for our market still seems likely to be sideward, albeit in a broader range. We may still have some juice left in the tank for further gains, but it would be hard not to expect some selling to come in soon.
The Australian monthly CPI indicator numbers are to be released at 11:30am (AEST). Our market could react to the numbers, as it has done in the past.
US Markets
US shares closed slightly higher overnight, to continue the bullish momentum from the session before. The gains came after further weaker than expected economic data in the US, which could support the case for further US rate cuts. Overall investors remain extremely nervous about the potential effects of Trump’s tariffs, so any news regarding the tariffs is likely to trigger market movement. The next major events for US markets will be some inflation data on Friday night, which will be important for the timing of further rate cuts – lower than expected inflation will likely trigger buying and higher than expected inflation will trigger selling. Following this the 2nd of April date for the next tariffs will be the next major event for the market.
Seven of the eleven sector groups of the SP500 closed higher overnight, with Communications and Discretionary stocks the best performers. Utilities, Healthcare, and Real Estate stocks saw the most selling.
Technically, the SP500 broke above the short-term downtrend line and is now testing the next resistance level at 5,775, which is where the 200-day moving average sits. Should the index close above this level, we should see a move to 5,850. Should the index resume falling, the recent lows around 5,550 are likely to act as support.
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